Türkiye Raises 2027 Arms Budget by 229%

Türkiye plans to lift its 2027 allocation for weapons, ammunition, weapons systems and other defence equipment by 229%, Vice President Cevdet Yılmaz said Wednesday as he presented the government’s budget proposal to Parliament’s Planning and Budget Commission. Defence and security allocations would total TL 3.45 trillion ($69.64 billion), including money for the Defense Industry Support Fund. That amounts to 12.7% of the central government budget.

Defence and public spending

The proposed increase forms part of a TL 27.2 trillion government spending plan for 2027. The government expects about TL 23.4 trillion in revenue, including TL 19.9 trillion from taxes. Revenue is forecast to climb 37.5% from the previous year, and tax revenue is projected to rise 36.5%.

Yılmaz called the proposal a “budget of resilience, prosperity and transformation.” He said it would strengthen the economy against external shocks. Price stability and stronger, sustainable macroeconomic balances, he said, are preconditions for lasting prosperity. Supporting disinflation is one of the budget’s main pillars.

The government aims to bring consumer price inflation down to 21% in 2027. Annual inflation dropped below 30% in September, and officials forecast it will finish 2026 at 28.4%.

Growth and economic targets

Türkiye’s growth of 5.2% exceeded the world average, Yılmaz said. The government projects growth of 4.2% in 2027 and 4.6% in 2028, and aims to reach 5% by the end of the Medium-Term Program period. Productivity-focused policies, it says, will raise potential growth by 0.5 percentage points.

National income is expected to top $1.8 trillion in 2026, while income per person is forecast to exceed $20,000. The government aims to push national income past $2 trillion during the program period.

The proposal sets employment and export goals, too. The government aims to add an average of 711,000 jobs annually through 2029 and bring unemployment into single digits. It projects an 8% unemployment rate in 2027, down from the 8.1% forecast for 2026.

Goods exports are targeted at $292 billion in 2027. The current account deficit is expected to equal 1.9% of national income, below its historical average. Yılmaz said global trade-volume growth would slow in 2028-2029.

The government also plans to expand housing supply through social-housing and rental social-housing projects. Those housing measures and economic goals sit alongside a 229% increase in planned arms and defence-equipment spending. The defence and security allocation would reach TL 3.45 trillion, while the full 2027 spending plan stands at TL 27.2 trillion.