FX.co ★ Turkey Budget Deficit Narrows in March

Turkey’s central government budget deficit narrowed to TRY 229.9 billion in March 2026, down from TRY 261.5 billion in the same month a year earlier. Budget revenues surged 60.6% year-on-year to TRY 1.23 trillion, driven by a 63.9% increase in tax collections to TRY 1.06 trillion. The tax performance was supported by strong gains in income tax, domestic VAT, VAT on imports, and special consumption tax receipts.

On the expenditure side, total spending rose 42.1% to TRY 1.46 trillion, fueled mainly by higher current transfers, personnel expenditures, and interest payments. Non-interest expenditures increased 41.3% to TRY 1.22 trillion, while interest payments jumped 46.3% to TRY 236.0 billion, highlighting rising debt-servicing costs.

Despite the headline deficit, the primary balance swung back to a surplus of TRY 6.1 billion, compared with a primary deficit of TRY 100.2 billion a year earlier, as robust revenue growth outpaced non-interest spending.