Türkiye’s Vice President Cevdet Yilmaz shared details of the 2025 budget, projecting a deficit of ₺1.9 trillion ($55.4 billion), equivalent to 3.1% of the country’s gross domestic product (GDP). The Treasury is expected to close 2024 with a deficit/GDP ratio of 4.9%. Lower deficits are key to fighting inflation, according to the master plan of economy czar Mehmet Simsek.
The budget estimates revenue at ₺12.8 trillion, while expenditures are forecasted to reach ₺14.7 trillion.
During the Central Government Budget Binding Ceremony, Yilmaz outlined the key budget figures, stating that in 2025, the government expects expenditures of ₺14.7 trillion and revenues of ₺12.8 trillion.
Projected 2024 budget deficit
The Presidency of Strategy and Budget projects that in 2024, ₺1.03 trillion will be allocated for earthquake-related expenditures. Excluding these costs, the budget deficit is expected to be 3.9% of GDP. The 2025 forecast represents a reduction of 0.8 percentage points compared to the previous year’s deficit.
Yilmaz’s previous statements on deficit reduction
In August, Yilmaz stated, “By the end of this year, we expect the budget deficit to drop below 5%. We are entering a period where the current account deficit, budget deficit, and associated risks are decreasing, while stability is increasing.”
For 2025, the budget deficit is projected to be 3.1% of GDP, reflecting the ongoing reduction trend.
Turkey is gearing up for a significant increase in its defense spending in 2025, Vice President Cevdet Yılmaz announced yesterday.
Some 1.6 trillion Turkish liras (~46 billion US dollars) will be allocated for defense and security according to the government’s plans. Of this amount, 913.9 billion liras will be earmarked for defense expenditures, and 694.5 billion liras will go toward internal security.
The country’s combined defense and internal security budget was at 971 billion liras for this year and at 524 billion liras for 2023.
The government has allocated TL 1.57 trillion for investments for 2025, amounting to some 10.7% of the planned expenditure, Yılmaz told an event to present the draft budget ahead of Parliament discussions, which are set to begin on Oct. 22.
ParaAnaliz, various news sources
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