President Erdoğan proposes 38 pct increase for president’s 2025 budget

Duvar English

The Presidency's Strategy and Budget Directorate on Oct. 17 submitted the central government budget proposal, signed by President Recep Tayyip Erdoğan, to the parliament.

According to the proposal, the budget of the Presidency increased by 38 percent compared to last year and amounted to 16.928 billion Turkish liras ($495 million).

The highest allocation in the presidency's budget was allocated for the purchase of goods and services with 9.96 billion liras, while 2.78 billion liras was allotted for personnel expenses.

Some 2.37 billion liras were allocated for current transfers, 1.75 billion liras for capital expenditures, and 163.1 million liras for state premium contributions to social security institutions. 

The presidency also plans to purchase 20 vehicles in 2025, including five official cars. The fleet will consist of 10 sedans and five off-road vehicles with a maximum capacity of eight passengers.  

A total of 16.94 million liras (excluding taxes) has been allocated for these vehicles. Each official car will receive a budget of 1.5 million liras, with a total of 7.51 million liras earmarked for them. However, the Treasury and Finance Ministry has the authority to increase these amounts.  

This comes despite a 2024 circular on public savings measures that limits new vehicle purchases in the public sector for three years.

AKP’s 23rd budget

Speaking at a ceremony held at the presidential palace before the budget was presented to the parliament, Vice President Cevdet Yılmaz underlined that the proposal was the 23rd budget of the ruling Justice and Development Party (AKP) governments and the 7th budget of the presidential system.

Yılmaz announced that the 2025 central government budget covers 227 public institutions. He projected budget expenditures to reach 14.73 trillion liras, with revenues estimated at 12.8 trillion liras, resulting in a budget deficit expected to equal 3.1 percent of the gross domestic product (GDP).  

The breakdown of the expected budget revenues included 2.13 trillion liras from income tax, 1.64 trillion liras from corporate tax, 2.12 trillion liras from special consumption tax (ÖTV), and 3.6 trillion liras from value-added tax (KDV). Other tax revenues were forecast at 1.65 trillion liras, while non-tax revenues were estimated at 1.66 trillion liras.

Yılmaz stated that the budget deficit was projected to reach 4.9% of GDP by the end of this year. 

In the 2025 budget, 584 billion liras have been allocated for the recovery of earthquake-affected regions and strengthening resilience against future disasters. Of this amount, 120 billion liras were earmarked for the "Disaster-Resilient Cities Project," equivalent to 0.9% of GDP.  

Excluding earthquake-related expenditures, the budget deficit was expected to be 2.2% of GDP. “As these figures indicate, the impact of our earthquake spending is gradually diminishing. Starting next year, this burden will decrease significantly, and our budget will continue on a much stronger path,” Yılmaz added.

The vice president outlined the economic breakdown of the 2025 budget allocations as follows: 3.91 trillion liras for personnel expenses, 1.02 trillion liras for goods and services purchases, 5.81 trillion liras for current transfers, 1.1 trillion liras for capital expenditures, and 338 billion liras for capital transfers. 

Additionally, 306 billion liras were allocated for lending expenses, 287 billion liras for contingency reserves, and 1.95 trillion liras for interest payments.

Diyanet continues to receive excessive budget

The Presidency of Religious Affairs (Diyanet) has attracted attention with its significant expenditures and expanded budget which surpasses major ministries. 

Diyanet's proposal for the budget has signified a rise by 41% to 130.12 billion liras in 2025. This budget surpasses those of several key ministries, including 56 billion liras for the Trade Ministry, 39 billion liras for the Foreign Affairs Ministry, 96 billion liras for the Interior Ministry, 45 billion liras for the Energy and Natural Resources Ministry, 53 billion liras for the  Culture and Tourism Ministry, and 124 billion liras for the Industry and Technology Ministry.

With a 41% increase from the previous year, the budget of the Presidency of Religious Affairs (Diyanet İşleri Başkanlığı) will surpass the 39% budget increase of the Health Ministry, the 35% budget increase of the Youth and Sports Ministry, and 323% increase of the Education Ministry.