Cevdet Yılmaz: The export forecast for the defense industry this year is 6.6 billion dollars.

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Vice President Cevdet Yılmaz made a presentation regarding the 2025 Central Budget Proposal at the TBMM Planning and Budget Commission. After the presentation, Yılmaz answered questions from journalists. Yılmaz stated that there is a perception in the public that the effects of the February 6 earthquakes centered in Kahramanmaraş have ended, saying, "But that's not the case; we are currently making the actual expenditures. Approximately 450,000 houses are being built. On one hand, infrastructure is also being constructed. TOKİ (Housing Development Administration) is building a new area there. There will be natural gas, a hospital, and infrastructure investments. Revitalizing the region socially and economically, tax advantages, incentives, all these are decisions with financial consequences. Therefore, when we look at it, there is a tremendous expenditure. A large part of this corresponds to 2023 and 2024. Just from the central government budget, there has been an expenditure of 2.6 trillion at 2024 prices over two years. This is an enormous figure, roughly equivalent to about 70 billion dollars. Hopefully, starting from next year, the need for these expenditures will decrease. This does not include local government expenditures, the Municipalities Bank, the private sector, or funds. Therefore, it is a significant burden; however, this burden is decreasing as of next year," he stated.

"WE HAVE MANY BUILDINGS THAT NEED TO BE TRANSFORMED"

Stating that the cost of 1 lira spent before the earthquake has turned into a cost of 7 lira after the earthquake, Yılmaz said, "The cost of preventive interventions is much lower than that of remedial interventions. Therefore, the essential thing is to manage risks. To manage crises, you first need to identify the risks. We need to determine where the risky areas are and where they are not. Turkey has made significant efforts in recent years. Both the academic world and AFAD (Disaster and Emergency Management Authority), our other institutions are trying to understand where the faults are and what is happening. It is hard to have 100% information here. The essence of the matter is to identify risky areas and not to open places where faults pass to settlement. If there will be new settlements, they should be constructed according to those risks. Building solid structures on solid ground. If settlements are to be made, they should also be constructed in accordance with the risks. When we do this, both your risks and costs actually decrease significantly. What we call 'urban transformation' is essentially about eliminating risks. Many buildings have been transformed; however, we still have many buildings that need to be transformed," he explained.

"584 BILLION BUDGET ALLOCATED FOR STRUCTURAL TRANSFORMATION"

Recalling that the Urban Transformation Presidency was established to renew the building stock, Yılmaz said, "It used to be a general directorate. The first is urban transformation, the second is a general directorate focused solely on the Marmara Region, and the third is a general directorate aimed at creating resources for these two general directorates and providing financing for urban transformation. We need to transform our remaining building stock in the upcoming period. We must utilize the opportunities to transform the building stock. A budget of 584 billion lira has been allocated for building transformation, just from the central budget. On the other hand, the issue of social housing is also very important. We need a new approach there as well," he stated.

"POPULATION DYNAMICS AFFECT EVERYTHING"

Yılmaz conveyed that Turkey is experiencing a demographic transformation, stating, "Currently, our fertility rate has dropped to 1.5. There are various reasons for this. On one hand, there are universal reasons. As people's education level and income level rise, the number of children decreases. This also affects women's entry into the workforce because care services are needed. Recently, our Minister of Family and Social Services made a presentation in the Cabinet, and following that, the President gave an instruction. We will establish a Demographic Population High Council. This council will examine these issues in detail and develop a new action plan. There are matters concerning the Ministry of Labor and Social Security, the Ministry of Treasury and Finance, the Ministry of Interior, the Ministry of Health, and TÜİK (Turkish Statistical Institute). We will gather the opinions of the ministries, and after the council is formed, we will create a new action plan. If there are things that can be done in care services, health conditions, and other material areas, this is a multi-dimensional issue. We will look at this issue in all its dimensions and prepare a holistic action plan. Currently, the preparation of the legislation regarding the formation of the council is ongoing. This does not require a law, as you know. It will be a council established by a presidential decision or decree. Ultimately, there will be a coordination structure where existing councils come together to coordinate on population policies. I see this as very important. It is a fundamental area that will affect everything from our long-term future to the social security system and cultural areas. In the future, we may discuss the need for elderly care centers more. Therefore, these population dynamics affect everything. We can manage this process not through meaningless discussions but by enriching and developing this country, which is also very effective in terms of the structure we bring. We can manage this as a richer country when we age. We can manage it with productive aging. But some countries will not be able to do this," he expressed.

"WE WILL MEET AGAIN AFTER THE BUDGET"

Yılmaz stated that a study is being conducted to support and strengthen the Defense Industry Fund, saying:

"There have been many discussions during this process. I agree with some of the criticisms. Social sensitivities and criticisms are legitimate criticisms. We respect them. The Parliament exists for this purpose. A proposal comes, discussions take place, a vote occurs, and if necessary, you can withdraw or transform the proposal. This should not be seen as a weakness, in my opinion. Serious criticisms have been raised socially. Impact assessments were made a bit hastily. This package was brought to be discussed in the 'Parliament'. A decision was made; as the People's Alliance, we will come together regarding this package after the budget. We will discuss it in detail, and each item will be reviewed again. The package will be revised considering the legitimate criticisms. Depending on how the political will is formed on that day, it will be presented again to the discretion of our Parliament if necessary. But right now, it is postponed. We are focused on the budget."

"WE ARE ALLOCATING AS MUCH MONEY AS POSSIBLE FOR DEFENSE INDUSTRY PROJECTS"

Yılmaz emphasized that there are many projects in the defense industry, stating, "The number of our projects has exceeded a thousand, and it has reached a good place. It has reached a size exceeding 15 billion dollars. I do not see the defense industry merely as a security issue. In fact, it is also very valuable due to its high added value economic structure. The efficiencies you gain here also affect the civilian industry over time. Today, the defense industry has become a large economic sector in Turkey. Last year, we exported 5.5 billion dollars, and our estimate for this year is 6.6 billion dollars. We are now selling products to countries that previously did not provide them to us with our money. But is it enough? It is not enough. Especially the Iron Dome project, this decision was made at the last Defense Industry Executive Committee, as you know.

There is the Iron Dome project that will protect Turkey's airspace against external attacks much more effectively. Of course, there are many sub-projects. This is an integrated system. On one side, there are the fifth-generation smart aircraft systems that we call Kaan. We have many other large projects similar to this. We allocate as much money as possible from the budget," he stated.