Turkey's 2026 central budget shows 298bn lira deficit in May

Turkey budget deficit May 2026 fiscal gap tax revenue decline interest expense rise public finance

The Ministry of Treasury and Finance reported that Turkey's central government budget recorded a 298.2 billion‑lira deficit in May 2026. Tax revenues fell 22.1% year‑on‑year to 931.5 billion lira, while total expenditures rose 27% to 1.384 trillion lira. The deficit for the month widened by about 533 billion lira compared with May 2025, when the budget posted a surplus.

For the January‑May period, the cumulative budget gap exceeded 1 trillion lira (1.057 trillion lira), a 62.5% increase over the same period in 2025, when the deficit stood at 650.3 billion lira. Interest expenses surged 51% YoY to 1.262 trillion lira, raising the share of debt servicing in total outlays to roughly 17%.

The fiscal imbalance was driven by a combination of declining tax collections—particularly income tax (down 57.4% YoY) and value‑added tax (down 66.1% YoY)—and higher spending on personnel, social security contributions, and capital transfers. The government indicated that tighter fiscal discipline will be pursued for the remainder of the year.