"Lightning's Tax and Balance Sheet Outputs: Key Messages in the 2026 Budget"

Şimşek Made Statements in the 2026 Budget Discussions

Minister of Treasury and Finance Mehmet Şimşek responded to the questions of the deputies after the 2026 budget discussions held within the Turkish Grand National Assembly (TBMM) Planning and Budget Commission. Şimşek emphasized that the reconstruction of the earthquake-affected areas is a top priority for the government.

Post-Earthquake Needs and Expenditures

Şimşek stated that expenditures made so far amount to 3.6 trillion lira, or approximately 90 billion dollars at 2025 prices. The Minister noted that measures regarding the Kahramanmaraş-centered earthquake were taken swiftly and that the emergency measures would end on November 30, but supports for those affected by the earthquake would continue. He also announced the removal of the collateral requirement of 250 thousand lira as a result of the ease in collateral conditions.

Tax Restructuring and Employment

Şimşek made statements regarding the tax amnesty, emphasizing that previous arrangements did not generally provide reductions in tax principal: "If taxpayers show that they are in difficulty by presenting their balance sheets, we can arrange installment payments." The Minister pointed out the absence of support programs for those who pay their taxes on time, indicating that they do not consider this as a reward system.

Solutions for Labor-Intensive Sectors

Addressing the issues faced in labor-intensive sectors such as textiles, furniture, leather, and apparel, Şimşek committed to implementing additional measures and supporting employment. In his evaluations regarding the economic program, he noted that the budget deficit has decreased from 5.1% to 4.7% and that this rate is projected to be around 3.5-3.6% in 2026. Şimşek emphasized that the current account deficit is no longer a concern.

Concordat and Company Status

Pointing out the difficulties in the real sector, Şimşek reported that a total of 4,567 companies have applied for concordat in the last 2.5 years. The share of these companies in turnover is 0.89%, and their share in exports is 0.85%. "Concordat does not mean bankruptcy," he stated, adding that the courts have been supportive of companies during this process.

Tax Expenditures and Social Housing Projects

The Minister indicated that a total of 1 trillion 92 billion lira in tax expenditures in 2026 would stem from exempting the minimum wage from taxes. Additionally, he expressed special importance for the construction of 500,000 social housing projects, stating that these would be offered through an income-based rent system. He also noted the significant share allocated for health, education, and social assistance.