Tax Revenues and Public Personnel Overtime Pay Determined in 2027 Budget Proposal
Turkey's 2027 budget proposal targets tax revenues of 22.1 trillion liras. While 6.3 trillion liras are allocated for public personnel, civil servants' overtime pay will be increased by 20 percent to 19.85 liras. A 507 percent increase is projected in real estate sales revenues.
Details of Turkey's 2027 budget proposal have been announced. According to the proposal, tax revenues are targeted to reach 22.1 trillion liras, an increase of 35.8 percent. A 55.8 percent increase in Special Consumption Tax (SCT) revenues to 3.3 trillion liras and a significant 507 percent increase in real estate sales revenues are projected. While 6.3 trillion liras are allocated for public personnel, state civil servants' overtime pay will be increased by 20 percent to 19.85 liras per hour. Additionally, it is planned to allocate 30 billion liras for martyrs' relatives and veterans, 125 billion liras for research and development activities, and 24.5 billion liras for the space and aviation program. The deliberations of the budget proposal at the TBMM Plan and Budget Committee are expected to begin on Wednesday, October 21.
Tax Revenue Targets in the 2027 Budget
In the 2027 budget proposal, tax revenues are targeted to reach 22.1 trillion liras, an increase of 35.8 percent. Within this amount, the share of income tax is expected to be 5.6 trillion liras, showing an increase of 34.3 percent compared to 2026.
There is an expectation of a higher increase in Special Consumption Tax (SCT) revenues. It is estimated that SCT revenues will increase by 55.8 percent to reach 3.3 trillion liras for 2027.
SCT and Other Indirect Taxes
A significant portion of SCT revenues is projected to be provided from motor vehicles, tobacco products, and alcoholic beverages. Revenues of 1.2 trillion TL from motor vehicles, 259.6 billion TL from alcoholic beverages, 795.9 billion TL from cigarettes and tobacco products, and 31.5 billion TL from cola-flavored soft drinks are targeted.
The revenue expected to be obtained from the valuable housing tax has been determined as 787.5 million liras, an increase of 40.8 percent compared to the previous year.
Various Revenue Items
In the budget, a revenue of 991 billion liras is projected within the scope of banking and insurance transaction tax. In the gambling tax, it is planned to provide 104 billion liras in revenue, an increase of 30.2 percent compared to 2026.
Revenues of 84.5 billion liras from special communication tax, 24.2 billion liras from digital service tax, and 27.2 billion liras from accommodation tax are expected.
While the total of fee revenues is targeted to reach 759 billion liras, title deed fees constitute a significant portion of this amount with 394.5 billion liras. Revenues of 147 billion TL from judicial fees, 39.7 billion TL from notary fees, 21.8 billion TL from traffic fees, and 22.6 billion TL from foreign travel fees are expected. Additionally, it is planned to obtain a resource of 80 billion liras from revolving funds.
Rent, Interest, and Fines
An increase is also expected in the state's rental income; rental income, which is planned to reach 42.9 billion liras in 2027, is projected to increase by 25.1 percent. Revenues of 18.6 billion liras from public housing and 10.9 billion liras from social facilities are targeted. The total of received donations, grants, and special revenues is calculated as 156.3 billion liras.
While interest income is expected to reach 538.5 billion liras with an increase of 28 percent, Treasury shares received from GSM operators are projected to be 76.7 billion liras.
The revenue planned to be obtained from fines increases by 30.8 percent compared to 2026 to 489.9 billion liras. It is expected that 14.8 billion liras of this amount will come from judicial fines, 82.8 billion liras from administrative fines, and 200.7 million liras from traffic fines. The revenue projected to be obtained from environmental administrative fines is 1.9 billion liras.
Real Estate Sales and Tourism Revenues
In the 2027 budget proposal, a total revenue of 125 billion liras is targeted from real estate sales. While 1 billion liras of this amount is expected to come from the sale of public housing, a remarkable increase of 507 percent is projected in real estate sales revenues compared to 2026.
Within the scope of tourism revenues, a resource of 64.5 billion liras is calculated for 2027.
Public Personnel Expenditures and Overtime
A total cash payment of 6.3 trillion liras is planned for personnel working in public administrations within the scope of the general budget in 2027.
It is planned to increase the overtime pay of state civil servants, which is 16.55 liras per hour, by 20 percent to 19.85 liras in the new year. Overtime pay for drivers will be calculated as 21.15 liras per hour.
An increase is also projected in domestic daily allowances to be paid within the scope of the Travel Allowance Law. Accordingly, the daily allowance of the Speaker of the TBMM and the Vice President will increase from 925 liras to 1,260 liras, and the daily allowances of Ministers and members of parliament will increase from 900 liras to 1,230 liras.
Allocations for Social and Strategic Areas
It is planned to allocate 30 billion 25 million 113 thousand liras for martyrs' relatives and veterans in the 2027 budget.
It is projected that 125 billion 949 million 860 thousand liras will be allocated in 2027 for research, development, and innovation activities that contribute to the development of domestic and national technologies.
The share that the space and aviation program will receive from the 2027 budget has been determined as 24 billion 587 million 454 thousand liras. It is planned to allocate 76 billion 539 million 734 thousand liras for the program to protect and support the development of children, and 11 billion 61 million 59 thousand liras for the program to empower women.
Institutional Personnel Expenses and Budget Process
Among ministries and institutions, the Ministry of National Education ranks first with 1 trillion 794 billion 497 million TL in allocations for personnel expenses. Personnel expense allocations of approximately 1 trillion 113 billion 830 million TL for the Ministry of Health, 523 billion 662 million TL for the General Directorate of Security, and 501 billion 511 million TL for the Ministry of National Defense are projected.
The deliberations of the budget proposal at the TBMM Plan and Budget Committee are expected to begin on Wednesday, October 21, and last for approximately one month.