Türkiye's central government budget registered a deficit of TL 96.8 billion ($2.9 billion) in July, official data showed on Thursday.

This marks a significant reduction from the previous month's shortfall of TL 275.3 billion, as per the Treasury and Finance Ministry's report.

In July, budget revenues totaled TL 730.9 billion, while expenditures reached TL 827.7 billion.

Non-interest expenditures were reported at TL 735.2 billion with interest payments amounting to TL 92.5 billion, the data showed.

Excluding interest payments, the budget balance posted a deficit of TL 4.2 billion, whereas tax revenues stood at TL 611.7 billion.

For the first seven months of the year, the budget balance ran a deficit of TL 844 billion, according to the data. During this period, budget revenues reached TL 4.6 trillion liras while expenditures amounted to TL 5.4 trillion, said the ministry.

The Turkish government is moving toward stricter fiscal policies, having recently announced major spending cuts and plans for an array of measures, such as a minimum corporate tax on companies.

The nation's budget has been considerably plagued by a sharp increase in spending after devastating earthquakes struck the southeastern region in February last year.

That fueled a budget deficit of about $45.5 billion in 2023 or 5.2% of gross domestic product (GDP).

The U.S. dollar traded at an average of 32.90 Turkish liras in July and 31.81 on average during the January-July period.