Turkiye Budget Swings to $7.9 Bn Deficit in July

Turkiye’s central government budget swung to a deficit in July, but Treasury and Finance Minister Mehmet Şimşek said the government remains on track with its fiscal targets despite the impact of geopolitical developments.

The budget recorded a TL 378.1 billion deficit last month, according to data from the Treasury and Finance Ministry. That follows a TL 114.2 billion surplus in June.Budget expenditures totalled TL 1.79 trillion, while revenues reached TL 1.41 trillion in July. The primary balance posted a deficit of TL 51.3 bn, while interest payments amounted to TL 326.8 billion.Despite the monthly deficit, Şimşek said the government was maintaining fiscal discipline and progressing in line with its budget goals.

For the January-July period, the budget registered a deficit of TL 1.32 trillion. Expenditures reached TL 10.52 trillion, compared with revenues of TL 9.20 trillion.The government recorded a TL 470.1 billion primary surplus during the first seven months of the year, as primary expenditures totaled TL 8.73 tn.

The primary surplus, an important indicator of the government’s fiscal position excluding interest payments, increased by TL 228 billion from the same period a year earlier, Şimşek said.Tax revenues also continued to rise. Tax collections increased 30 percent year-over-year in July to TL nearly 1.24 trillion, while other non-tax general budget revenues rose 18.9 percent to TL 145.6 bn.