Budget Balance - July 2026

In July, central government budget expenditures rose sharply by 60% yoy to 1.8 trillion TRY, while budget revenues increased at a more moderate pace of 29%, below the annual inflation rate, to 1.4 trillion TRY. Consequently, the central government budget deficit widened nearly sixteenfold from a year earlier to 378.1 billion TRY. In the same period, Treasury cash deficit was 395.7 billion TRY. Meanwhile, the primary budget balance, which posted a surplus of 110.7 billion TRY in July 2025, recorded a deficit of 51.3 billion TRY in the same month of this year.

In the January–July period, the budget deficit increased by 31.5% yoy to 1.3 trillion TRY. The primary budget surplus rose from 241.7 billion TRY in the first seven months of 2025 to 470.1 billion TRY in the same period of this year.

In July, budget revenues increased below the annual inflation rate due to the impact of the sliding scale system and the loss of momentum in overall economic activity. Budget expenditures, meanwhile, rose above inflation, driven particularly by the sharp increase in interest expenses. Nevertheless, the budget deficit recorded in the first seven months of the year accounted for 48.7% of the full-year target of 2.7 trillion TRY, indicating that the budget outlook remained consistent with the target. Under the decision dated August 13, SCT amounts applicable to certain types of diesel fuel were reduced to zero until the end of August. These amounts are scheduled to be gradually raised in monthly increments of 3 TRY/liter from September onwards, reaching 13.90 TRY/liter at the beginning of 2027. The course of oil prices, the effect of the aforementioned regulation and the outlook for economic activity will continue to influence budget performance through the tax revenue channel.