FX.co ★ Turkey’s Budget Deficit Narrows Sharply in January 2026

Turkey’s central government budget deficit narrowed significantly at the start of 2026, with the balance improving to -214.50 billion in January 2026 from -528.10 billion recorded in December 2025. The latest figures, updated on 16 February 2026, point to a substantial month-on-month easing in fiscal pressure.

The December 2025 reading had marked a period of pronounced budgetary strain, but the January 2026 data show a more than halving of the shortfall. While the budget remains in deficit, the sharp improvement may signal the impact of early-year fiscal measures, seasonal factors in revenue and expenditure, or a combination of both.

Investors and analysts will be watching subsequent monthly readings closely to determine whether this January adjustment marks the beginning of a more durable trend toward fiscal consolidation or a temporary correction following an exceptionally weak December.