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Türkiye's central government budget deficit jumped 1,484.6% year on year to ₺378.1 billion ($7.9 billion) in July from ₺23.9 billion a year earlier, largely driven by interest payments more than doubling and slower growth in tax collection, official figures showed on Monday.
Central government budget spending rose 59.8% year on year to ₺1.8 trillion in July from ₺1.1 trillion a year earlier, while interest payments surged 142.8% to ₺326.8 billion from ₺134.6 billion.
The sharp rise in interest costs also pushed the primary balance into a ₺51.3 billion deficit, compared with a ₺110.7 billion surplus in July 2025.
Budget revenues rose 28.8% year on year to ₺1.4 trillion in July, while tax revenues increased 30% to ₺1.2 trillion.
In June, Türkiye's central government posted a ₺114.2 billion budget surplus, reversing a ₺330.2 billion deficit a year earlier and ending a three-month run of deficits.
Among tax collections, income-tax revenue rose 47.9% year on year to ₺432.0 billion in July, while domestic value-added tax collections increased 46.2% to ₺183.4 billion.
Corporate tax revenue, however, fell 69.8% to ₺3.6 billion in July, weighing on the overall tax collection performance. Special consumption tax revenue rose 5.1% to ₺190.7 billion, while value-added tax collected on imports increased 16.4% to ₺192.6 billion.
Within special consumption tax, revenue from petroleum and natural gas products fell 36.1% year on year, or ₺17.2 billion, to ₺30.4 billion in July, mostly stemming from the fuel tax buffer that reduced the SCT applied to fuel products to cushion consumers from higher global energy prices.
During the January-July period, central government budget spending rose 36.6% year on year to ₺10.5 trillion, while non-interest spending increased 35.3% to ₺8.7 trillion. Interest payments climbed 43.7% to ₺1.8 trillion.
Budget revenues increased 37.4% to ₺9.2 trillion, while tax revenues rose 37.3% to ₺7.9 trillion. The budget deficit reached ₺1.3 trillion, compared with ₺1 trillion in the same period of 2025.
Despite the wider overall deficit, the primary balance remained in surplus at ₺470.1 billion in the first seven months, up from ₺241.7 billion a year earlier.
Interest payments accounted for ₺1.8 trillion of spending during the January-July period, equivalent to 65.3% of the government's ₺2.7 trillion full-year interest allocation. Total budget spending reached 55.4% of its annual allocation, while non-interest spending reached 53.8%.
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