Budget deficit for six months amounted to 4,234.8 million TL

On September 9, 2025, the Central Bank of the Turkish Republic of Northern Cyprus (TRNC) released a statistical bulletin for the second quarter, including up-to-date data on the global and domestic economy, the banking sector, and budget dynamics.

According to the published information, in the second quarter of 2025, budget revenues amounted to 23,216.3 million Turkish Lira, while expenditures reached 29,158.7 million TL. This led to a budget deficit for the reporting period of 5,942.4 million TL. For comparison, in the second quarter of 2024, the deficit was 5,127.6 million TL.

For the first six months of 2025, budget revenues increased by 66% compared to the previous year and reached 48,674.1 million TL, while expenditures rose by 61.1% to 52,908.9 million TL. Thus, the budget deficit for the half-year amounted to 4,234.8 million TL.

The bulletin also provides data on domestic government debt, formed through the issuance of domestic government bonds (DİBS) and short-term advances (KVA). As of the end of the second quarter, domestic debt increased from 6,079.6 million TL at the end of 2024 to 13,293.6 million TL. Of this amount, 10,233.8 million TL were DİBS bonds and 3,059.8 million TL represented KVA balances.

Among domestic bonds, 3,370.0 million TL are denominated in Turkish Lira and fully owned by the Treasury. In the structure of foreign currency bonds, 5,407.8 million TL also belong to the Treasury, 310.8 million TL to the Technical University (TÜK), and 1,145.2 million TL to the Eastern Mediterranean University (DAÜ). The currency composition of these securities is as follows: 87.5 million USD, 29.5 million EUR, and 42.4 million GBP.

Thus, the Central Bank of TRNC's bulletin for the second quarter of 2025 demonstrates a significant increase in budget indicators and domestic debt. The 66% rise in revenues and 61% rise in expenditures led to a half-year deficit of 4.23 billion TL, while domestic debt more than doubled during the same period, reaching 13.29 billion TL.