Türkiye’s central government posted a budget deficit of 532.2 billion lira in September, as spending growth far outpaced revenue, according to figures released by the Ministry of Treasury and Finance on Thursday.
Revenue rose 22.7% from a year earlier to 1.253 trillion lira, while expenditure climbed 34.1% to 1.785 trillion lira. Based on the ministry’s figures, the deficit compares with roughly 310 billion lira in September 2025.
The primary balance, which excludes interest payments and is closely watched as a measure of fiscal discipline, showed a deficit of 269.2 billion lira, up from 73 billion lira a year earlier. Interest payments rose 11.2% to 263 billion lira.
Transfers and wages drive spending
Current transfers, which include social security support, pensions and agricultural subsidies, jumped 48.7% to 679.4 billion lira. Personnel spending rose 24.5% to 455.6 billion lira.
Tax revenue increased 21.8% to 1.074 trillion lira. Income tax receipts rose 27.2% and value-added tax on domestic transactions grew 34.8%. Corporate tax revenue fell 38.2%, and the special consumption tax, known as ÖTV and levied on fuel, cars, tobacco and alcohol, declined 7.9%.
Nine-month picture
In the first nine months of the year, revenue rose 34.5% to 12.108 trillion lira and spending increased 36.4% to 13.948 trillion lira, leaving a cumulative deficit of 1.840 trillion lira. Spending so far equals 73.5% of the 18.979 trillion lira budgeted for 2026.
Tax revenue in January-September grew 34.2% to 10.402 trillion lira, but special consumption tax rose only 3.1%, well below annual inflation, which stood at 29.73% in September.
The figures come as Finance Minister Mehmet Şimşek’s economic programme relies on fiscal tightening alongside high interest rates to bring inflation down. The central bank, which holds its policy rate at 37%, is due to make its next rate decision on Oct. 22. Economists will watch whether stronger spending in the final months of the year affects the government’s deficit target and the pace of disinflation.
Sources
Photo: Central Bank of the Republic of Turkey / Public domain, via Wikimedia Commons
