Türkiye’s Treasury Cash Deficit Hits ₺1.36 Trillion in First Seven Months of 2025

The Ministry of Treasury and Finance reported that Türkiye’s Treasury cash balance posted a ₺1.362 trillion deficit in the January–July 2025 period. Even excluding interest payments, the primary cash deficit stood at ₺215.9 billion, signaling deep-rooted fiscal challenges.

Former Treasury Undersecretary and economist Dr. Mahfi Eğilmez highlighted the deterioration in the primary balance, noting that the budget is in deficit “even without any interest payments, despite significant tax revenue and collections.” He described public waste as the “black hole” of the budget.

During the first seven months of the year, Treasury revenues—including privatization proceeds—totaled ₺6.820 trillion, while total expenditures reached ₺8.183 trillion. The cash deficit thus continued to widen compared to the same period in 2024, when the full-year deficit was ₺2.092 trillion.

Primary Deficit Reveals Structural Weaknesses
Data shows the budget remains unbalanced even when interest expenditures are excluded. In 2022, the primary balance recorded a ₺110.3 billion surplus, but turned into deficits of ₺71.7 billion in 2023 and ₺929.2 billion in 2024. In just the first seven months of 2025, the figure is already ₺215.9 billion.

This trend indicates that the budget’s imbalance stems not only from debt servicing costs but also from a sharp increase in non-interest spending.

Experts Question Fiscal Discipline
Economists stress that these deficits cannot be explained solely by high interest expenses and that the efficiency and quality of public spending must be scrutinized. Commenting on Eğilmez’s remarks, Prof. Dr. Emre Alkin said:

“In a country with a primary deficit, you cannot claim there is budget discipline.”