Public debt rises amid concerns over fiscal sustainability

Concerns have been raised regarding the sustainability of public finance due to rapidly increasing domestic debt and high interest rates. Internal debt, which stood at 16.3 billion TL at the end of 2025, reportedly reached 33 billion TL within nine months.

Recent borrowing activities show a heavy reliance on short-term loans to cover public sector salaries. For instance, on August 28, 4.715 billion TL was borrowed with a 91-day maturity and an average interest rate of 38.60%. On September 4, an additional 4.086 billion TL was borrowed with a 98-day maturity at an average interest rate of 38.92%.

The current fiscal pattern involves continuous borrowing to meet current needs and to roll over existing debt. There are calls for public sector unions to look beyond immediate salary amounts and address the long-term risks posed by this debt-driven method of funding wages and cost-of-living allowances.