AI-generated illustration

Vice President Cevdet Yılmaz told parliament's Plan and Budget Commission that the government is making every effort, with a fair and just approach, to improve conditions for retirees, and that the 2027 budget gives them priority.

Speaking while answering lawmakers' questions on the 2027 Central Government Budget Bill and the 2025 Final Accounts Bill, Yılmaz said the budget was drawn up with increases for pensioners above inflation, which raised the projected deficit to 3.5% of national income.

Energy support, tax mix and fund investigations

Yılmaz said energy subsidies from the budget totaled 3.9 trillion lira, or 74.9 billion dollars, between 2021 and 2026, and that 605 billion lira has been set aside for the same purpose in the budget, money households would otherwise have paid themselves. The share of indirect taxes in total taxation fell from 65.8% in 2024 to 62.4% in 2025 and is expected to reach 59.4% in 2026, he said, adding that rates are set with mass consumption in mind and that luxury goods face higher taxes.

On investigations into investment funds, Yılmaz recalled that decisions were taken swiftly under President Recep Tayyip Erdoğan after the companies concerned defaulted, with the State Supervision Council assigned and the judicial system engaged, while a Fund Coordination Board handled general coordination between institutions. A law on extraordinary liquidation has been enacted, he said, and ordinary liquidations have been completed for three companies, with one more nearly finished. He named A1 Kapital, Bulls, Pardus and Hedef among the companies involved and said a significant payment would be made on Friday.

Key takeaways

• Vice President Yılmaz said the 2027 budget prioritizes retirees with increases planned above inflation, raising the projected deficit to 3.5% of national income.
• Turkey's average growth over the past quarter century was 5.3% versus 3.5% worldwide; in 2020-2025 it averaged 5.2% against 3%.
• Goods and services exports are now close to 410 billion dollars, up from about 50 billion dollars in 2002.
• Public debt stands near 22% of national income with reserves close to 170 billion dollars.