Unemployment Insurance Fund Announces 3-Year Plan for 2027‑2029 Period

Background On Sunday, President Cevdet Yılmaz announced that the Unemployment Insurance Fund will be utilized during the 2027‑2029 period as part of the three‑year Medium‑Term Program (OVP).
The plan takes into account inflation targets, budget revenues and expenditures, and other macroeconomic indicators to determine fund usage.
Financial Details The fund, established in 1999 by Bülent Ecevit, is scheduled for disbursement between 2027 and 2029.
Projected 2027 balance: 350 billion lira, expected to drop to 152 billion lira due to excessive spending.
2028 balance: 139 billion lira.
2029 balance: 90 billion lira.
As of July, the total balance stands at 817 billion lira.
Cuts and Resource Use Annual cuts will be made, with resources opening from 2027 onward.
Criticism Economists warn that the fund could be used to garner votes during election periods and question the sustainability of similar pandemic‑era measures.
Concerns are also raised about potential damage to the social security system.
Expert Opinions Experts continue to analyze the impact of the fund’s use on budget balance and inflation targets, while also considering its long‑term effects on social security.