Turkish Parliament approves 2021 budget

The 2021 budget was approved by Parliament nearly two months of debates at the Planning and Budget Commission and General Assembly.

The size of the 2021 Budget was determined as follows:

>> Budget expenditures: TRY 1.346tr

>> Non-interest expenses: TRY 1.166tr

>> Budget revenues: TRY 1.101tr

>> Tax revenues: TRY 922.7bn

>> Budget deficit: TRY 245bn

The government allocated TRY 326.6bn for compensation of employees and TRY 54.5bn for social security contributions in the 2021 budget, prepared in accordance with the Program Budget principles for the first time. TRY 89.1bn was allocated for purchases of goods and services, TRY 536bn for current transfers, TRY 103.7bn for capital expenditures, TRY 8.8bn for capital transfers, TRY 38bn for lending, TRY 9.9bn for reserve appropriation and TRY 179.5bn for interest expenses.

Tax revenues to be TRY 922bn

The Central Government’s budget revenues are projected to be TRY 1.101tr and tax revenues are estimated at TRY 922.7bn. Tax free incomes are predicted to reach TRY 178.4bn.

Tax revenues projected for 2021 are:

>> Income tax: TRY 195.3bn

>> Corporate income tax: TRY 105.2bn

>> Special Consumption Tax: TRY 213.7bn

>> Domestic VAT: TRY 70.6bn

>> Import VAT: TRY 194.9bn

>> Motor vehicle tax: TRY 18.5bn

>> Banking and Insurance Transaction Tax: TRY 28.5bn

>> Stamp duty: TRY 23.8bn

>> Fees: TRY 34.4bn

>> Other taxes: TRY 37.9bn

>> Tax free incomes: TRY 178.4bn

Real sector supports

In order to support the real sector within the scope of employment incentives, the government allocated TRY 27.7bn for social security premiums for employers, TRY 5.5bn for treasury-backed guarantees, TRY 5.5bn for agricultural loan interest supports, TRY 4.1bn for export supports, and TRY 3.8bn for loan interest supports for tradespeople. TRY 1.6bn will be transferred from the Small and Medium Enterprises Development Organization’s (KOSGEB) budget to support SMEs and TRY 2bn within the scope of incentive payments to be used through the Ministry of Industry and Technology. TRY 1.124bn was allocated for Organized Industrial Zone and small industrial area investments.  

TRY 211bn for education

The education budget will be TRY 211.9bn and the health budget will be TRY 77.6bn for 2021. The government allocated TRY 123bn for treatment expenditures, TRY 60bn for medication expenditures and TRY 11.4bn for family medicine.

Resources of TRY 22bn for agricultural support programs, TRY 12.1bn for agricultural sector investment appropriations, TRY 8.3bn for agricultural loan subsidies, intervention purchases, financing of agricultural public economic enterprises and export supports were allocated from the 2021 budget. The government will allocate TRY 9bn for agricultural irrigation investments in 2021.

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