Vice President Cevdet Yılmaz announced the basic dimensions of the 2027 Central Government Budget proposal.
Accordingly, while national income is expected to reach 111 trillion liras in 2027, central government budget expenses are predicted to be 27 trillion 276 billion liras and budget revenues are projected to be 23 trillion 408 billion liras.
While the ratio of the budget deficit to gross domestic product (GDP) was expected to be 3.5 percent, this ratio was estimated to be 2.8 percent when earthquake expenses were excluded.
Yılmaz stated that they foresee economic growth to increase to 4.2 percent in 2027, with the contribution of the expected improvement in the global outlook.
Stating that Türkiye maintained its growth even in a period when foreign demand weakened and cost pressures increased, Yılmaz noted that the effects of foreign demand and energy remained limited and Türkiye maintained its solid stance against the developments in the global economy.
Yılmaz stated that they foresee the budget deficit to GDP ratio to decrease to 3.1 percent by the end of 2026.
Stating that they have completed the year at better levels than the initially anticipated budget deficit in the last three years, Yılmaz stated that there have been significant developments in commodity prices as a result of the wars and tensions in the nearby geography.
Noting that they did not compromise on budget discipline despite all the negative developments, Yılmaz stated that the budget will give a primary surplus, albeit at a low level, as of 2025.
VAT IS FIRST IN TAX REVENUES
The highest tax revenue item in the 2027 budget is expected to be value added tax (VAT) with 5 trillion 681 billion liras.
It is anticipated that 5 trillion 533 billion lira will be generated from income tax, 3 trillion 284 billion lira from special consumption tax (SCT) and 2 trillion 223 billion lira from corporate tax.
Other tax revenues are estimated to be 3 trillion 184 billion liras, and non-tax revenues are estimated to be 3 trillion 502 billion liras.
CURRENT TRANSFERS HAVE THE BIGGEST SHARE IN THE BUDGET
Among budget expenditures, current transfers rank first with 10 trillion 240 billion liras.
It is envisaged that an appropriation of 7 trillion 117 billion lira will be allocated for personnel expenses, 3 trillion 975 billion lira for interest expenses and 2 trillion 184 billion lira for the purchase of goods and services.
3.7 TRILLION LIRA RESOURCES FOR EDUCATION
Stating that education will continue to be one of the priority policy areas, Yılmaz stated that 2 trillion 459 billion liras will be allocated to the Ministry of National Education in the 2027 budget.
Noting that the budgets of higher education institutions will be increased to 872 billion liras, Yılmaz stated that when higher education expenditures are included, the total education budget will reach 3 trillion 747 billion liras.
Stating that this amount corresponds to 13.7 percent of the central government budget, Yılmaz noted that resources in the field of education will be increased.
4.5 TRILLION LIRA FOR HEALTH
Stating that 2 trillion 134 billion liras will be allocated from the central government budget for health services, Yılmaz stated that when the expenditures of the Ministry of Health, higher education institutions and the Social Security Institution are included, the total resources in the field of health will reach 4 trillion 532 billion liras.
1.3 TRILLION LIRA FOR SOCIAL AID AND SUPPORT
Announcing that 1 trillion 341 billion liras will be allocated for social aid and support in the 2027 budget, Yılmaz stated that this amount corresponds to 4.9 percent of the budget.
Stating that an appropriation of 250 billion liras is envisaged to support social housing financing with an increase of 150 percent, Yılmaz noted that 186 billion liras will be allocated for health premiums of citizens who do not have the ability to pay, 132 billion liras for pensions for the elderly and disabled, 109 billion liras for home care support for the disabled and 90 billion liras for education support for disabled citizens.
A resource of 84 billion lira was foreseen for maternity aid payments and 29 billion lira for social and economic support for children in economic deprivation.
Yılmaz stated that they will continue to address the social housing issue sensitively in the coming period.
605 BILLION LIRA FOR ENERGY SUPPORT
Stating that 605 billion liras of resources will be allocated in the 2027 budget, an increase of 62 percent, in order to support citizens' electricity and natural gas bills, Yılmaz stated that energy subsidies contribute 0.5 points to the ratio of the budget deficit to GDP.
Noting that 1 trillion 460 billion lira will be contributed to the income of employees in 2027 within the scope of the practice of exempting wages up to the minimum wage from tax, Yılmaz stated that when energy supports and wage exemptions are included, the total resources allocated to social expenditures will reach 3 trillion 406 billion lira.
RESOURCES OF 1.3 TRILLION LIRAS FOR THE AGRICULTURAL SECTOR
Stating that they consider agriculture as a strategic sector, Yılmaz announced that a total of 1 trillion 305 billion liras will be allocated for the agricultural sector in the 2027 budget.
In this context, a resource of 342 billion lira for agricultural sector tax expenditures, 325 billion lira for agricultural credit support, 268 billion lira for investment appropriations and 235 billion lira for agricultural support programs was envisaged.
135 billion lira will be allocated for the financing of agricultural public economic enterprises, intervention purchases and export supports.
Stating that 50 percent of the farmers' diesel fuel costs and 25 percent of the fertilizer costs are covered, Yılmaz stated that an average of 70 percent of the interest expenses in agricultural loans are covered by the Treasury.
658 BILLION LIRA SUPPORT TO THE REAL SECTOR
Stating that the investment, employment, production and export-oriented growth strategy will be continued, Yılmaz stated that 658 billion lira will be allocated for real sector supports, excluding agricultural credit subsidies.
In this context, it is planned to allocate 351 billion liras for Social Security Institution employer premium support payments, 92 billion liras for Halk Bank tradesman loans subsidy support, 73 billion liras for incentive payments of the Ministry of Industry and Technology and 65 billion liras for export supports.
769 BILLION LIRA FOR EARTHQUAKES AND DISASTERS
An appropriation of 769 billion lira was foreseen in the 2027 budget to eliminate earthquake damage and increase resilience to disasters.
3.45 TRILLION LIRA FOR DEFENSE AND SECURITY
Stating that it is aimed to reduce foreign dependency in the defense industry, Yılmaz announced that the appropriations for the purchase of weapons, ammunition, weapon systems and other defense tools in the budget of the Ministry of National Defense were increased by 229 percent.
He stated that, together with other defense expenditures, a total of 3 trillion 454 billion lira will be allocated to the defense and security sector, including 2 trillion 206 billion lira for defense and 1 trillion 248 billion lira for internal security.
2.4 TRILLION LIRA TO MUNICIPALITIES
Stating that the total resources allocated to municipalities and special provincial administrations will be increased to 2 trillion 384 billion lira, Yılmaz stated that the share of this amount in the budget will increase from 4 percent in 2002 to 8.7 percent in 2027.
2.85 TRILLION LIRA FOR INVESTMENTS
Stating that investments will continue in many areas from irrigation projects to railways, from maritime investments to energy exploration activities and mining projects, Yılmaz noted that the resource allocated to investments in the 2027 budget has been increased to 2 trillion 849 billion lira.
Stating that this amount corresponds to 10.4 percent of the total budget, Yılmaz stated that investment expenditures will continue.
Yılmaz will share more detailed information about the 2027 budget proposal in his presentation to the Turkish Grand National Assembly (TBMM) Planning and Budget Commission next week.
