The State Will Complete Unfinished Buildings During the Public Austerity Period
Official titlePreparations for the 2027-2029 Period Public Investment Program and Presidential Circular No. 2026/10
Basic principles and an implementation guide focused on savings and efficiency have been published for the preparations for the 2027-2029 period public investment program.
Before
The investment preparation processes and guidelines of previous years.
After
The restriction on new projects pursuant to austerity measures, priority given to completing existing projects, and digital monitoring through the KaYa system.
Details of the Regulation
Presidential Circular No. 2026/10 establishes the strategic framework for preparations for the public investment program covering the 2027-2029 period. The primary focus of the text is to ensure maximum savings in public spending within the scope of maintaining macroeconomic stability and combating inflation. Accordingly, the efficient use of public resources and the acceleration of investment processes have been adopted as basic principles. The circular requires institutions to comply strictly with budget discipline. It has been emphasized that investment priorities must be fully aligned with the targets of the 12th Development Plan and the Medium-Term Program (OVP). Particular emphasis will be placed on social and economic infrastructure investments, high-quality projects that will increase the productivity of the private sector, and maintenance and repair activities that extend the service life of existing assets. Spending outside critical areas such as education, health, and earthquake-region rehabilitation is expected to be restricted. The most notable rule in the implementation process is that no new projects will be included in the 2027 investment program except in compulsory cases. Priority has been given to completing existing projects as soon as possible and bringing them into service, while the removal of projects with a low probability of physical completion or whose economic benefits have become uncertain has been raised. All public institutions have been required to submit their investment proposals through the “KaYa Information System” digitally and in accordance with the specified calendar to the Directorate of Strategy and Budget.
Questions You Might Have
- Will the state not construct new buildings in 2027?
- New projects will be initiated only in strictly unavoidable cases and urgent needs, such as earthquakes; the primary objective will be to complete unfinished projects.
- Which sectors may be exempt from this restriction?
- Priority will continue to be given to investments in the earthquake region and basic social service projects, such as education and health, albeit within limited constraints.
- Why is the KaYa Information System important?
- It reduces bureaucracy by ensuring that all projects are monitored instantly and centrally without wasting paper.
Key Terms
- KaYa Bilgi Sistemi
- Public Investments Information System; the platform through which investment projects are monitored digitally.
- Fizibilite Etüdü
- A report analyzing the feasibility, cost, and expected benefit of an investment.
- OVP
- Medium-Term Program; the fundamental document containing three-year economic targets and policies.
Affected Sectors
- Public administration
- Construction
- Healthcare
- Education
- Transport
- Energy
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REGAS Commentary
This circular indicates that a period focused on “speed and efficiency” in public services for citizens has begun. Rather than new massive projects, focus will be placed on completing or maintaining existing schools, hospitals, and roads. This situation may be interpreted as a disciplined step taken to bring the budget deficit and inflation under control.