Turkey’s central government budget deficit reached 378.1 billion lira in July, hitting a seven-month high

⑴ Turkey's central budget deficit in July reached 378.1 billion lira, a significant increase from 23.9 billion lira in the same period last year, marking the largest deficit since December 2025. Total expenditures rose 59.8% year-on-year to 1.8 trillion lira, with sharp increases in spending on current transfers, personnel costs, and social security contributions. ⑵ Non-interest expenditures grew 48.4% to 1.5 trillion lira, while interest expenditures surged 142.8% to 326.8 billion lira. Revenue increased 28.8% year-on-year to 1.4 trillion lira; taxes rose 30.0% to 1.2 trillion lira, with robust performance in income tax, domestic value-added tax, import value-added tax, and special consumption tax. ⑶ The primary balance shifted from a surplus of 110.7 billion lira in the same period last year to a deficit of 51.3 billion lira.