Turkey has proposed a historic budget for defense and security, amounting to $47 billion for the upcoming year, the highest in its history. During a governmental briefing, Vice President Cevdet Yilmaz outlined the allocation of 913.9 billion Turkish lira (approximately $26.8 billion) specifically for defense spending, which will also help finance a defense industry support fund totaling 165 billion lira. Additionally, the proposed budget allocates 694.5 billion lira for domestic security operations, which encompass expenditures for the interior ministry, police force, national intelligence agency, and other related security entities. Compared to Turkey’s previous defense budget of around $40 billion in 2024, the new budget reflects a substantial 17.5% increase, emphasizing the government’s commitment to expanding military capabilities.
The increase in defense spending is primarily fueled by Turkey’s active military operations in regions such as Syria and Iraq, as well as its military bases situated in places like Libya, Somalia, Qatar, and a permanent presence in Northern Cyprus. Under the leadership of President Recep Tayyip Erdogan, who has been in power since 2003, the Turkish government has consistently invested heavily in the domestic arms industry. This investment spans various military technologies, including armed drones, ballistic missiles, national warships, and advancements in armored vehicle production. The bolstering of the defense capacity signifies Turkey’s commitment to maintaining a robust military presence amid ongoing regional tensions.
Given the current geopolitical landscape, particularly heightened military tensions between Israel and Iran, Turkey is taking precautions to prepare for potential conflict. Foreign Minister Hakan Fidan emphasized the necessity for the country to be ready for any escalation between these two nations, asserting that Turkey would employ every possible measure to secure its national interests. The urgency of this approach is compounded by potential instability in the region that could have direct repercussions on Turkey’s security.
To finance the increased defense expenditures, the Turkish government had proposed a controversial new tax bill intended to generate additional resources for the Defense Industry Support Fund. This scheme sought to impose an annual fee of 750 lira on citizens with credit cards exceeding a limit of 100,000 lira. However, faced with significant public backlash and accusations of unconstitutionality for taxing credit rather than actual income, the ruling Justice and Development Party (AKP) withdrew the proposal. In light of this, Ankara is now exploring alternative revenue sources to meet its budgetary requirements while attempting to alleviate concerns over government funding strategies.
Additionally, Turkish Treasury and Finance Minister Mehmet Simsek commented on the strong emphasis being placed on advanced military technology within the defense sector. He highlighted a focus on the development of a “Steel Dome” defense system aimed at safeguarding Turkey against aerial threats such as drones and missiles, reflecting the troubling security environment Turkey finds itself in. This strategic pivot showcases the government’s intent to enhance its defensive capabilities in response to emerging threats while emphasizing the financial challenges associated with such ambitious military developments.
Simsek noted that over 1,000 technology-driven projects within the defense industry are in progress. The ongoing investments encompass various high-tech military advancements, from air defense systems and long-range instruments to the development of fifth-generation fighter jets. However, these projects demand significant financial resources, indicating a substantial fiscal commitment from the government to elevate Turkey’s standing in military technology. As Turkey undertakes these initiatives, it underscores the importance of a vigilant and adaptive defense posture in an increasingly complex regional security environment.
