Turkey Budget Deficit Largest in 7 Months

2026-08-17 09:00 By Erika Ordonez 1 min. read

Turkey’s central government budget posted a deficit of TRY 378.1 billion in July 2026, widening sharply from TRY 23.9 billion in the same month a year earlier.

This marked the largest budget deficit since December 2025, as total expenditures surged 59.8% to TRY 1.8 trillion, driven by higher spending on current transfers (+57.2%), personnel costs (+43.3%), social security contributions (+48.2%), purchases of goods and services, and capital expenditure.

Non-interest expenditures increased 48.4% to TRY 1.5 trillion, while interest payments climbed 142.8% to TRY 326.8 billion.

Meanwhile, revenues jumped 28.8% year-on-year to TRY 1.4 trillion, fueled by a 30.0% increase in tax collections to TRY 1.2 trillion, reflecting robust growth in income tax, domestic VAT, import VAT, special consumption tax, banking and insurance taxes, and customs-related revenues.

As a result, the primary balance swung to a deficit of TRY 51.3 billion from a surplus of TRY 110.7 billion a year earlier.



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Turkey Budget Deficit Largest in 7 Months
Turkey’s central government budget posted a deficit of TRY 378.1 billion in July 2026, widening sharply from TRY 23.9 billion in the same month a year earlier. This marked the largest budget deficit since December 2025, as total expenditures surged 59.8% to TRY 1.8 trillion, driven by higher spending on current transfers (+57.2%), personnel costs (+43.3%), social security contributions (+48.2%), purchases of goods and services, and capital expenditure. Non-interest expenditures increased 48.4% to TRY 1.5 trillion, while interest payments climbed 142.8% to TRY 326.8 billion. Meanwhile, revenues jumped 28.8% year-on-year to TRY 1.4 trillion, fueled by a 30.0% increase in tax collections to TRY 1.2 trillion, reflecting robust growth in income tax, domestic VAT, import VAT, special consumption tax, banking and insurance taxes, and customs-related revenues. As a result, the primary balance swung to a deficit of TRY 51.3 billion from a surplus of TRY 110.7 billion a year earlier.
2026-08-17
Turkey Budget Balance Shift to Surplus
Turkey’s central government budget posted a surplus of TRY 114.2 billion in June 2026, reversing from a deficit of TRY 330.2 billion in the same month a year earlier. Budget revenue jumped 66.0% year-on-year to TRY 1.5 trillion, fueled by a 72.0% increase in tax collections to TRY 1.3 trillion, reflecting robust growth in income tax, domestic VAT, import VAT, and special consumption tax. Meanwhile, total expenditures rose 12.6% to TRY 1.4 trillion, driven by higher personnel spending, goods and services purchases, and current transfers. Non-interest expenditures increased 23.9% to TRY 1.2 trillion, while interest payments declined 26.9% to TRY 201.6 billion. As a result, the primary balance swung to a surplus of TRY 315.8 billion from a deficit of TRY 54.5 billion a year earlier.
2026-07-16
Turkey Budget Balance Swings to Deficit
Turkey’s central government posted a budget deficit of TRY 298.2 billion in May 2026, compared with a surplus of TRY 235.2 billion a year earlier. Total spending rose 27.0% year-on-year to TRY 1.38 trillion, driven by increases in personnel costs (+48.1%), social security contributions (+52.6%), current transfers, capital expenditure, and goods and services purchases. Non-interest expenditures increased 28.3% to TRY 1.26 trillion, while interest payments rose 16.0% to TRY 128.9 billion. On the revenue side, inflows fell 18.0% to TRY 1.09 trillion, weighed by a 22.1% drop in tax receipts to TRY 931.5 billion, reflecting broad-based declines across key categories, including income tax, VAT, and special consumption tax, despite gains in banking and insurance taxes and customs-related revenues. As a result, the primary balance shifted to a deficit of TRY 169.3 billion from a surplus of TRY 346.4 billion a year earlier.
2026-06-15