Türkiye budget deficit exceeds 1.32 trillion TL in seven months

The Turkish Ministry of Treasury and Finance has released budget implementation results for the first seven months of the year, revealing a central government budget deficit of 1.32 trillion TL. While budget revenues rose by 37.4% to 9.2 trillion TL, expenditures increased by 36.6% to 10.52 trillion TL.

A significant driver of the deficit is the surge in interest expenses, which reached 1.79 trillion TL, representing a 43.7% increase compared to the same period last year. In July alone, interest payments accounted for approximately 18% of total expenditures.

Other notable spending areas include 50.6 billion TL for public rent and 10.92 billion TL for secret service (örtülü ödenek) expenditures. Additionally, the Presidency of Religious Affairs (Diyanet) has utilized 60.3% of its annual budget within the first seven months.

Revenue trends show a 30% increase in tax revenues for July, driven by income and VAT, though corporate tax collections saw a 69.8% decrease. There are also discussions regarding a gap in fuel Special Consumption Tax (ÖTV) revenues, which some analysts suggest is being offset by high traffic fine collections.