Türkiye's central government budget posts deficit in July

Türkiye's central government budget posted a deficit in July as expenditures exceeded revenues, the Treasury and Finance Ministry reported on Monday.

Revenues increased by 28.8% to 1.41 trillion Turkish liras ($30.03 billion) in July compared to the same month last year while budget expenditures rose by 59.8% year-on-year to reach 1.79 trillion liras ($38.07 billion) during the month.

The central government budget posted a deficit of 378.1 billion liras ($8.04 billion) in July.

Non-interest expenditures jumped by 48.4% to 1.46 trillion liras ($31.12 billion) compared to July 2025.

The non-interest balance showed a surplus of 110.7 billion liras ($2.3 billion) in July of last year.

Personnel expenses surged by 43.3% to 461.5 billion liras ($9.81 billion) in the same period.

During the January-July period, total budget revenues went up by 37.4% to 9.19 trillion liras ($195.61 billion).

Budget expenditures for the first seven months reached 10.52 trillion liras ($223.7 billion) with a 36.6% increase.

The seven-month budget balance yielded a deficit of 1.32 trillion liras ($28.09 billion).

Tax collections in the January-July period amounted to 7.85 trillion liras ($167.01 billion), reflecting a 37.3% annual rise.

Treasury and Finance Minister Mehmet Simsek stated on a Turkish social media platform NSosyal that the government maintains fiscal discipline despite the negative impacts of geopolitical developments.

He noted that Türkiye is advancing in line with budget targets despite forgoing significant tax revenues within the scope of the sliding scale system to support disinflation and the effects of balancing domestic demand on revenue performance.

The non-interest budget surplus, a major factor in reducing the debt burden, increased by 228 billion liras ($4.7 billion) year-on-year in the January-July period to reach 470 billion liras ($9.8 billion).

Simsek emphasized that the domestic debt rollover ratio was kept at 87% by considering financing conditions.

The government will continue to direct the fiscal space provided by increased effectiveness in revenue policies and strengthened spending discipline to priority areas to support the disinflation process, he added.