Finance Minister Mehmet Şimşek has stated the government would maintain fiscal discipline and continue implementing policies aimed at supporting the disinflation process, underscoring the role of budget discipline in achieving price stability.
Despite foregoing some tax revenues to limit the impact of geopolitical developments on inflation, the budget recorded a non-interest budget surplus of 521 billion Turkish Liras in the first half of the year, Şimşek said in a social media post on July 20.
The budget deficit improved by 38 billion liras compared with the same period a year earlier, he added.
Şimşek said the budget deficit-to-GDP ratio, which stood at 2.9 percent in 2025, was estimated to have declined to around 2.5 percent on a rolling annual basis as of June.
He attributed the improvement to measures aimed at combating the informal economy, policies designed to increase voluntary compliance and continued discipline in public expenditures.
Şimşek also said domestic debt rollover ratios were running below both last year’s levels and official projections, supported by budget performance.
Fiscal discipline, which strengthens the economy’s resilience, remains critical for ensuring price stability, Şimşek said.
“We will continue our policies in line with our disinflation target while maintaining fiscal discipline,” he added.
