16.10.2026 11:11
Vice President Cevdet Yılmaz announced the details of the 2027 budget. Yılmaz, stating that the resources allocated to urban transformation will be increased to 276 billion TL, said that the goals are for inflation to fall to 21 percent and unemployment to 8 percent. Priority will also be given to social housing and rental social housing projects in the budget.
Vice President Cevdet Yılmaz, in his speech at the 2027 Central Government Budget Binding Ceremony, announced next year's budget priorities and economic targets.
Yılmaz, stating that the 2027 budget was prepared to maintain macroeconomic stability, support the fight against inflation, and strengthen investment, employment, and exports, reported that the budget proposal is ready to be submitted to the Grand National Assembly of Turkey (TBMM).
Yılmaz stated that the budget was shaped in line with the 12th Development Plan and the updated Medium-Term Program (OVP), and said that increasing economic resilience, ensuring sustainable growth, and improving income distribution were among the priorities.
276 BILLION TL TO BE ALLOCATED FOR URBAN TRANSFORMATION
Yılmaz announced that the appropriation allocated for urban transformation in the 2027 budget will be increased by 176 percent to 276 billion TL.
Yılmaz, stating that the construction of social housing for low-income citizens, people with disabilities, and young people who will newly marry will be accelerated, expressed that policies aimed at reducing housing costs will continue.
Noting that social housing and rental social housing opportunities will be expanded in order to limit rent increases, Yılmaz said they will continue to prioritize this area in the coming period.
2027 GROWTH TARGET IS 4.2 PERCENT
Yılmaz, stating that the Turkish economy continued to grow despite tightening global financial conditions, weakening external demand, and cost pressures, expressed that the negative effects stemming from external demand and energy remained limited.
Yılmaz announced that they forecast the Turkish economy to grow by 4.2 percent in 2027, with the contribution of the expected improvement in the global economic outlook and the recovery in external demand.
Yılmaz, stating that they aim for growth to gradually accelerate through productivity-focused policies, said that the growth rate is aimed to reach 5 percent in 2029.
657,000-PERSON INCREASE IN EMPLOYMENT EXPECTED
Yılmaz, announcing that they foresee an increase in employment as economic growth accelerates next year, stated that employment is expected to increase by 657,000 people in 2027.
Yılmaz expressed that they expect the labor force participation rate to rise to 53.4 percent and the unemployment rate to decline to 8 percent.
2027 INFLATION TARGET IS 21 PERCENT
Yılmaz, stating that the improvement in the underlying trend of inflation continues, said that fiscal policies are being conducted in a way that will support the disinflation process.
While announcing that they expect consumer inflation to decline to 28.4 percent at the end of 2026, Yılmaz shared the inflation forecast for the end of 2027 as 21 percent.
Reminding that annual inflation fell below 30 percent in September, Yılmaz stated that it is aimed to sustain the decline in inflation through supply-side policies, especially social housing and food.
Emphasizing that they aim to achieve permanent single-digit inflation in the medium term, Yılmaz expressed that the budget deficit will be gradually reduced and the strong outlook of public debt will be maintained.
THE CURRENT ACCOUNT DEFICIT IS EXPECTED TO FALL BELOW 2 PERCENT
Yılmaz, also sharing expectations regarding foreign trade and the current account balance, announced that they expect total goods and services exports to reach 410 billion dollars in 2026.
Yılmaz, stating that the current account deficit is at 2.6 percent due to temporary war-related effects, said that this level is manageable.
Yılmaz expressed that they expect the current account deficit to fall below 2 percent of national income again in 2027.
INVESTMENT, PRODUCTION AND EXPORTS WILL BE SUPPORTED
Yılmaz, stating that the 2027 budget was prepared with an approach that supports investment, employment, production, and exports, said that priority will also be given to green and digital transformation policies.
Noting that these policies aim to increase productivity and competitiveness, Yılmaz expressed that the gains from economic growth are intended to be spread to broader segments of society.
Describing the budget as a transformation budget that strengthens economic resilience, social welfare, and production capacity, Yılmaz stated that the economy's resilience against global and regional risks will be increased.
THE BUDGET PROPOSAL IS READY TO BE SUBMITTED TO THE TBMM
Reminding that the 2027 budget preparations were carried out in line with the Medium-Term Program published on September 6, 2026, Yılmaz said that the work was completed with the instructions of President Recep Tayyip Erdoğan and the participation of relevant ministries and public institutions.
Yılmaz stated that the 2027 budget will be the 25th budget of AK Party governments, the 9th of the Presidential Government System, and the 4th of the Century of Türkiye.
Yılmaz announced that the prepared budget proposal has become ready to be submitted to the TBMM.