The Plan and Budget Commission of the Grand National Assembly of Turkey (TBMM) convened under the chairmanship of Commission Chairman Mehmet Muş to discuss the 2027 Central Government Budget Law Proposal and the 2025 Central Government Final Account Law Proposal as well as the Court of Accounts reports.
In the commission, which was held with the participation of Vice President Cevdet Yılmaz, the 2027 budget proposal in general, the 2025 final accounting law proposal and the Court of Accounts reports were discussed. In the commission, MPs took the floor and made evaluations regarding the budget. After the evaluations, Yılmaz answered the questions of the MPs regarding the general budget proposal for 2027.
Vice President Yılmaz stated that he carefully listened to the evaluations of the deputies regarding the budget and the final account proposal in general, and that they will definitely benefit from constructive criticism.
“As a state, we need to define our role again and strongly in the new era.”
Stating that the digital and technological transformation led by artificial intelligence in the world affects all areas, Yılmaz stated that this process should be read correctly and the role of the state and the public should be redefined in the new era in order for Türkiye not to be at a disadvantage in international competition. Yılmaz said, “We are entering a period in which the state and the public must play a much more active role. But we have to define it well. We are now in a period in the world where states and public authorities intervene in economic processes with protectionist policies and very micro interventions. We, as the state and the public, need to define our role again and strongly in this new period.”
Yılmaz stated that the Turkish economy has grown by an average of 5.3 percent annually in the last 25 years, exceeding the world average of 3.5 percent, and stated that Türkiye performed above global growth with an average growth of 5.2 percent in the 2020-2025 period.
“One of the biggest advantages of our country is the low public debt rate.”
Speaking about the ratio of public debt to national income, Yılmaz said, “In developed countries, this rate is over 90 percent. In developing countries, it is over 70 percent and in our country it is around 22 percent. This is a very important asset for us. I would like to express that one of the biggest advantages of our country in the competitive environment with the technological transformations I just mentioned in the coming period is this low public debt ratio. Our reserves provide us with support against external shocks. We have a reserve of nearly 170 billion dollars. Our banking system has high capital adequacy ratios.” “Therefore, I would like to emphasize that our foundations are solid and we continue our development.”
“Increasing our domestic and national production is very important in terms of economic resilience.”
Explaining why they named the budget ‘durability, welfare and transformation budget’, Yılmaz said, “We are now in an environment where it is possible to influence economies by controlling a critical raw material and where critical technologies are politically directed. In such an environment, increasing our domestic and national production and diversifying our supply sources and markets is very important in terms of economic resilience. In today’s world, the only criterion is no longer the lowest price. The assurance of long-term and reliable supply of products is at least as important as the price. Therefore, we consider the issue of durability in terms of our long-term development perspective.” “We must discuss it seriously,” he said.
“We especially prioritized our retirees in our 2027 budget”
Underlining that the main purpose of economic policies is to increase the welfare of society and people, Yılmaz said: “We especially prioritized our retirees in our 2027 budget. While preparing our budget, we prepared our budget based on providing our retirees with an opportunity above the increase that will come with inflation. And within this framework, if you pay attention, our deficit increased. In other words, we were expecting 3.1 percent by the end of this year. We planned next year as 3 and a half percent. We will evaluate all the opportunities in our budget within this framework and say that we can do it.” I would like to express that we will strive to do the maximum in this field. This is not just a study about minimum pensioners. We are continuing our technical studies on alternatives with all relevant institutions. As you know, this field must be regulated by law. As our President emphasized in his statement yesterday, we will make every effort to provide better conditions for our retirees. “We will use it accordingly.”
“Türkiye increased its social expenditures and strengthened its status as a social state”
Yılmaz stated that social expenditures have increased not because poverty has increased, but because the understanding of the social state has strengthened, and said, “Some of our friends said things like, ‘Are they increasing because poverty has increased? On the contrary, while poverty indicators have decreased and income distribution has improved, Turkey has increased its social expenditures and strengthened its qualification as a social state. We have increased our support in many areas, from the periodic aid of the governorships to the salaries of people over the age of 65, from the services offered to the disabled to social housing. Therefore, our social expenditures have increased not because poverty has increased, but because the understanding of the social state has strengthened. In our Constitution, social expenditures have increased.” “It is clearly emphasized that we are a state. During the 25-year AK Party rule, while the social state was weakened in the world, the social state was strengthened in Türkiye,” he said.
Yılmaz stated that connectivity is not only about transportation routes, but also that new corridors have been formed in the fields of energy, digital communication, information and trade, and that Türkiye is in an advantageous position in this field. Stating that the Development Road, Zengezur and Middle Corridor, Hejaz Railway route and the new lines to be established in the Black Sea will contribute to both national and regional development, Yılmaz noted that investments in GAP, DAP, KOP and DOKAP will continue.
“The idle workforce is increasing, we have multifaceted measures here too.”
Stating that the issue of idle labor is included as a heading in the Medium Term Program, Yılmaz said, “This is not unemployment, there is an international definition of unemployment. We measure it the same way everyone else measures it. We do not have a different criterion. The idle labor force is increasing. We have versatile measures here, too. In my opinion, one of the most important elements is to re-emphasize the culture of production. We should give the new generations the value of getting something by working hard, rather than the feeling of earning a quick income or reaching something immediately with the support of social media, in a much stronger way.” he said.
“I would like to state that we impose more taxes on luxury products in the taxes we collect on consumption.”
Making evaluations regarding interest expenses, Yılmaz noted that the rate in the budget has recently increased to 14 percent due to the impact of earthquake-related expenses on borrowing, and that they expect this rate to decrease in the medium term.
Yılmaz stated that they observe tax justice in all taxes, direct and indirect, and said, “I would also like to state that we determine the rates of taxes we collect on consumption, especially by taking into account the consumption of large segments of people, and that we impose more taxes on luxury products.”
Reminding that decisions were taken quickly under the chairmanship of President Recep Tayyip Erdoğan to solve the fund crisis that emerged after the developments in the capital markets, Yılmaz said, “First of all, the State Supervisory Board was appointed and is currently in the field. It is examining these institutions. If there are people responsible by examining these institutions, it will of course investigate them. That process continues. On the other hand, judicial mechanisms have come into play very effectively and strongly. Many detentions, arrests and cautionary decisions have been implemented. In judicial mechanisms, our judiciary is also on this issue.” “He fulfills his duty effectively,” he said.
“As of October 23, 68 billion lira was paid to 71 thousand 899 accounts”
Reminding that the Law on Certain Investment Funds Decided to Liquidate came into force after being published in the Official Gazette, Vice President Yılmaz said, “As you know, the liquidation of three companies has been completed regarding ordinary liquidations. One is about to be completed. The payments of the companies named A1 Capital, Bulls, Pardus and Hedef and the ninety-three funds under them have been made. As of October 23, 68 billion lira has been paid to a total of 93 funds and 71 thousand 899 accounts. Therefore, these processes are continuing. “The law has also been passed in our parliament. However, the bank responsible for Tera’s liquidation is İş Bank. The remaining ones are Pusula and Atlas. The debate continues on whether Atlas will go into ordinary liquidation. If it does not, it will be subject to extraordinary liquidation. The responsible institution for these two is Ziraat Bank. They have made preparations for these.”
“For payments up to 1 million lira, the remaining net investment amount of 125 billion lira appears.”
Stating that the payments up to 1 million lira regarding the extraordinary liquidation process will start through İş Bank and Ziraat Bank as of Friday, Yılmaz said, “They will start from the lowest to the highest. They have cash that they need to distribute. Apart from that, they have resources that can be converted into cash quickly. We expect them to evaluate this process within the next week or two and complete this process by mid-November. We are making every effort to make them faster. For payments up to 1 million lira, the remaining 125 lira.” “There is a net investment amount of billion lira. Therefore, it is anticipated that this amount can be easily achieved with these repayments.”
Yılmaz continued his words as follows: “These expenditures will be financed from three sources. Firstly, there are remaining amounts in these funds, they have their own assets. There are cash assets or qualified shares. Secondly, there are those recovered from those who have made exorbitant profits from repayments or those who have gained unfair profits. As of yesterday, there is a repayment of 11 billion liras, but we expect it to increase again at this rate. The resources coming from there will also come from there. If it is related to a fund, if not to that fund, we have a general account, it will come there. “The distribution will be made to the funds according to the criteria determined by the CMB. Thirdly, the assets of the people who are in this judicial process are transferred to the SDIF. With this law approved by our Parliament, we have authorized the SDIF to turn it into a liquid asset much more quickly. Within this framework, we will do its part in the SDIF and make payments to the investors from there.”
“If we love this country, we need to support our capital markets”
Stating that capital markets should be supported and legitimate investors protected, Yılmaz said, “If we love this country, if we want this country to develop, we need to support our capital markets. We need to support legitimate investors who work in a healthy way. It is a wrong approach to show that investing in capital markets, investing in a fund or buying stocks is a crime. Let’s fight against thieves, corrupts, fund profiteers and manipulators to the end, but let’s also protect the investors. Let’s distinguish between legitimate investors and manipulators. If we do not distinguish between legitimate investors, we will also treat legitimate investors.” “We would also harm the development process of this country,” he said.
Following the speech of Vice President Cevdet Yılmaz, the 2027 Central Government Budget Law Proposal and the 2025 Central Government Final Account Law Proposal were voted and accepted by the GNAT Planning and Budget Commission.
