Turkey Plans 229% Boost to Defense Budget Under New Medium-Term Program

Turkey’s Vice President Cevdet Yilmaz unveiled a three-year Medium-Term Economic Program for 2027-2029 that calls for a 229 % rise in defense spending. The increase is the largest among the seven priority sectors outlined in the plan and is intended to fund projects such as the TF-Kaan fighter jet, the Bayraktar Kizilelma unmanned fighter, and additional Altay tanks for the Turkish Land Forces.

The Jerusalem PostTürkiye Set to Boost Defense Budget by 229% Euronews

The same programme raises the year-end inflation forecast for 2026 to 28.4 %, up from a prior projection of 16 %. Yilmaz linked the upward revision to the war in the Middle East, which the central bank estimates adds roughly seven percentage points to inflation. The government projects inflation to fall to 21 % in 2027, 13.5 % in 2028 and 9 % in 2029, while targeting modest growth improvements.

EuronewsTürkiye raises defence spending by 229% The Jerusalem Post

He noted that the global economy is experiencing intertwined economic, technological, and geopolitical shifts that reduce predictability and raise risks, affecting Turkey’s economic outlook. Yilmaz also stressed that the war with Iran has created direct and indirect impacts on energy, commodity prices, and inflation.

The Jerusalem Post

• Defence spending increase: +229 % over three years.

Türkiye raises defence spending by 229%

• Other priority-area increases: social housing +150 %, mining exploration +139 %, industrial infrastructure +54 %, railways +49 %, health +43 %, food-supply security +42 %.

Türkiye raises defence spending by 229%

• Inflation forecast: 28.4 % by end-2026; previous forecast 16 %.

Euronews

• Inflation impact from Middle-East war: ? 7 percentage points (central-bank estimate).

Euronews

• “In the defense industry, we aim for a Turkey that develops its own technology and produces high added value,” — Cevdet Yilmaz, turkish vice president

The Jerusalem Post

• “The global economy has recently been going through a new period in which economic, technological, and geopolitical developments are intertwined, predictability has decreased, and risks have risen to historically high levels,” — Cevdet Yilmaz, turkish vice president

The Jerusalem Post

• “We expect inflation to start declining again in the fourth quarter of 2026 and to reach 28.4% by the end of the year,” — Cevdet Yilmaz, turkish vice president

Euronews

• “In the defense industry, we aim for Türkiye that independently develops advanced technologies and produces high value-added products,” — Cevdet Yilmaz, turkish vice president

Türkiye Set to Boost Defense Budget by 229%