In September 2023, the budget deficit reached 309.6 billion TL.

Why Did the Budget Deficit Rise So Much?

In September 2023, Turkey's central budget recorded a deficit of 309.6 billion TL. While this figure is an important indicator for ensuring fiscal discipline, it highlights the need to address particularly increasing expenditures and slowing tax revenues.

Components of the Budget Deficit

This deficit, reaching the highest levels in the last twenty years, increases the government's borrowing needs. Especially during the economic recovery process after the COVID-19 pandemic, there have been significant increases in spending items. The pressure on the budget from interest payments, social assistance, and investment expenditures is noteworthy.

Market Reaction and Reflections in BIST

The BIST 100 index showed a volatile trend following these announcements, capturing investors' attention. Investors are taking cautious steps in the stock market due to concerns about public financial balance. The sustainability of the budget deficit will directly affect whether the Turkish lira can appreciate.