Türkiye raises 2027 arms procurement budget by nearly 230%

Türkiye has ​increased its budget allocation for ⁠the procurement ⁠of weapons, ammunition, weapons systems ​and ​other defense ⁠equipment by 229% for 2027, Vice President Cevdet Yılmaz said on Wednesday.

Yılmaz said total allocations for defense and security would reach TL ⁠3.45 trillion ($69.64 billion), including resources earmarked ​for the Defense Industry Support ​Fund.

The remarks came as he presented the government’s 2027 budget ⁠proposal ⁠to Parliament’s Planning and Budget Commission.

Yılmaz said total allocations for defense and security account ⁠for ‌12.7% ‌of the ⁠central ‌government budget, he ​said.

Government spending for 2027 is projected at TL 27.2 trillion and revenue at about TL 23.4 trillion. Revenue is expected to rise 37.5% from the previous year to TL 23.4 trillion, and tax revenue 36.5% to TL 19.9 trillion.

Yılmaz called it a “budget of resilience, prosperity and transformation” meant to strengthen the economy against external shocks.

He said price stability and sustainably stronger macroeconomic balances are preconditions for lasting prosperity, and that supporting disinflation is one of the budget’s main pillars.

Yilmaz said the government aims to bring consumer price inflation down to 21% in 2027.

Annual inflation fell below 30% in September and is forecast to end this year at 28.4%.

Yilmaz said the economy has kept its resilience and has grown for 24 consecutive quarters. He said Türkiye’s growth of 5.2% is above the world average.

The government aims to raise potential growth by 0.5 percentage points through productivity-focused policies, and expects growth of 4.2% in 2027 and 4.6% in 2028, reaching 5% by the end of the Medium-Term Program (MTP) period.

National income is expected to exceed $1.8 trillion in 2026, with income per person above $20,000, Yılmaz said. The aim is to pass $2 trillion during the MTP period.

The government aims to create an average of 711,000 additional jobs a year through 2029, with the goal of bringing unemployment down to single digits, according to Yılmaz.

Unemployment is forecast to fall to 8% next year from a projected 8.1% in 2026.

Yılmaz said goods exports are targeted to reach $292 billion in 2027, and the current account deficit is expected to be 1.9% of national income, below its historical average. He added that growth in global trade volume is forecast to slow in 2028-2029.

The government aims to increase housing supply through social housing and rental social housing projects, Yılmaz noted.