Budget Balance - June 2026

In June, central government budget revenues increased by 66% yoy to 1.5 trillion TRY, while budget expenditures rose at a more moderate pace of 12.6% to 1.4 trillion TRY. As a result, the central government budget, which had recorded a deficit of 330.2 billion TRY in June 2025, posted a surplus of 114.2 billion TRY in the same month of 2026. In this period, the Treasury cash surplus was 50.8 billion TRY. The primary budget balance, which had posted a deficit of 54.5 billion TRY in June 2025, recorded a surplus of 315.8 billion TRY in June 2026. Consequently, in the first half of the year, the cumulative budget deficit declined by 3.8% yoy to 942.8 billion TRY, while the cumulative primary surplus increased fourfold to 521.4 billion TRY.

In the first half of the year, tax revenues from income and profits recorded strong growth, while the increase in indirect taxes on consumption remained limited due to the impact of the sliding scale system. Meanwhile, interest and non-interest expenditures exhibited similar growth rates. During this period, the cumulative budget deficit accounted for 34.8% of the target for the full year 2026, pointing to a favorable fiscal performance. Looking ahead, the volatility in oil prices stemming from the recent escalation of tensions in the Middle East, together with the impact of these developments and the continued tight monetary policy stance on economic activity, will continue to be closely monitored in terms of their effects on budget performance.