FX.co ★ Turkey Budget Deficit Largest in 7 Months

Turkey’s central government budget recorded a deficit of TRY 378.1 billion in July 2026, a sharp deterioration from the TRY 23.9 billion shortfall posted in the same month a year earlier. This was the largest monthly budget gap since December 2025, as total expenditures surged 59.8% year-on-year to TRY 1.8 trillion.

The rise in spending was broad-based, led by a 57.2% increase in current transfers, a 43.3% jump in personnel expenses, a 48.2% rise in social security contributions, as well as higher outlays on goods and services and capital expenditure. Non-interest expenditures climbed 48.4% to TRY 1.5 trillion, while interest payments soared 142.8% to TRY 326.8 billion.

On the revenue side, total inflows grew 28.8% from a year earlier to reach TRY 1.4 trillion. Tax revenues advanced 30.0% to approximately TRY 1.2 trillion, supported by strong gains in income tax, domestic VAT, import VAT, special consumption tax, banking and insurance transaction taxes, and customs-related receipts.

Consequently, the primary balance (excluding interest payments) shifted from a surplus of TRY 110.7 billion in July 2025 to a deficit of TRY 51.3 billion in July 2026.