FX.co ★ Turkey Budget Deficit Widens in January

Turkey’s central government budget deficit widened to TRY 214.5 billion in January 2026, up from TRY 139.3 billion in the same month a year earlier. Budget revenues rose 55.0% year-on-year to TRY 1.42 trillion, underpinned by a 49.0% increase in tax income to TRY 1.18 trillion. The rise in tax revenues was driven primarily by stronger income tax, domestic VAT, and special consumption tax collections.

On the expenditure side, total spending increased 54.9% to TRY 1.64 trillion, reflecting broad-based growth across categories. Non-interest expenditures climbed 32.0% to TRY 1.18 trillion, while interest payments surged 180.0% to TRY 456.4 billion, underscoring the mounting cost of debt servicing.

Despite the strong increase in overall expenditures, the primary balance posted a surplus of TRY 241.9 billion, a sharp improvement from TRY 23.8 billion a year earlier, supported by solid revenue performance at the beginning of the year.