Turkey's central government budget turns from surplus to deficit in May with a shortfall of 298.2 billion lira

⑴ In May 2026, Turkey's central government recorded a budget deficit of 298.2 billion lira, compared to a surplus of 235.2 billion lira in the same period last year. Total expenditure rose 27.0% year-on-year to 1.38 trillion lira, driven by increases in personnel costs (+48.1%), social security contributions (+52.6%), regular transfers, capital expenditures, and purchases of goods and services.⑵ Non-interest expenditures increased by 28.3% to 1.26 trillion lira, while interest payments rose by 16.0% to 128.9 billion lira. On the revenue side, inflows dropped 18.0% to 1.09 trillion lira, dragged down by a decline in tax revenue of 22.1% to 931.5 billion lira, reflecting a widespread decrease across main tax categories including income tax, value-added tax, and special consumption tax, though bank and insurance taxes as well as customs-related revenues saw growth.⑶ As a result, the primary balance shifted from a surplus of 346.4 billion lira last year to a deficit of 169.3 billion lira.