Turkey's September Budget Gap Reaches 532.2 Billion Lira
Spending growth outpaced revenue, while interest costs are projected to approach 3 trillion lira by year-end.
Key takeaways
- Turkey recorded a 532.2 billion lira budget deficit in September.
- Budget spending rose 34.1% year over year, faster than the 22.7% increase in revenue.
- Debt-management projections put year-end interest costs at 2.9 trillion to 3 trillion lira.
Turkey recorded a budget deficit of 532.2 billion lira in September, as spending increased faster than revenue. Budget spending rose 34.1% year over year, while revenue grew 22.7%.
Interest payments reached 263 billion lira in September, according to the report. Of the 2.7 trillion lira set aside for debt interest this year, about 2.2 trillion lira had been used in the first nine months.
Debt-management projections put year-end interest costs at 2.9 trillion to 3 trillion lira. The report said that would equal about 17% of total budget spending and 20% to 21% of tax revenue.
Interest, personnel costs and current transfers limit the budget’s flexibility, Prof. Dr. Binhan Elif Yılmaz said. The report put their respective shares of the budget at about 17%, 30% and 38% to 40%.
Yılmaz said the budget’s rigidity makes it harder for fiscal policy to support efforts to curb inflation. For the 2027 budget, she called for more funding for public investment and lower-income groups, and for a review of the costs of public-private partnership projects.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
