Central government budget outlays on R&D amounted to 14 billion 924 million TRY in 2019

Central government budget outlays on Research and Development (R&D) activities amounted to 14 billion 924 million TRY in 2019, with an increase of 14.6% compared to the previous year. According to this result, Central Government Budget outlays on R&D accounted for 0.35% of Gross Domestic Product (GDP) in 2019.

According to provisional results based on initial budget appropriations, Turkey has allocated 14 billion 307 million TRY on R&D for the budgetary year 2020.

One of the data sources used in indirect R&D support calculations is the Corporate Tax Returns. Due to the measures taken within the scope of the fight against COVID-19, Indirect R&D support for 2019 could not be calculated in the press release period for the reason of postponement of submission and accrued tax payment period of the Corporate Tax Declarations. Following the acquisition of data from the source, by calculating indirect R&D supports will also be shared as a statistical table.

Central government budget outlays on R&D and indirect R&D support⁽¹⁾, 2008-2019

⁽¹⁾Indirect R&D support is calculated by using Revenue Administration data.

Share of Central Government Budget outlays on R&D in GDP, 2008-2019

Most appropriations were allocated to general university funds

The largest share of Central Government Budget outlays on R&D was allocated to the socio-economic objective ‘General advancement of knowledge: R&D financed from General University Funds (GUF)’ with 43.6% for the year 2019. This is followed by ‘Defense’ with 18.7%, ‘Industrial production and technology’ with 10.6%, ‘General advancement of knowledge: R&D financed from other sources than GUF’ with 7.1% and ‘Transport, telecommunication and other infrastructures’ with 5.1% respectively.

According to the estimation made for 2020, based on the initial Central Government Budget appropriations, most appropriations were allocated to ‘General advancement of knowledge: R&D financed from GUF’ with 46.6%. This was followed by ‘Defense’ with 20.8%, ‘Industrial production and technology’ with 8.6%, ‘General advancement of knowledge: R&D financed from other sources than GUF’ with 6.1% and ‘Education’ with 4.7%.

        Socio-economic objectives, 2019                                              Socio-economic objectives, 2019

The next release on this subject will be in June, 2021.
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EXPLANATIONS

Measuring R&D activities financed by Government (Central Government) based on initial budget appropriations (provisional) and actual outlays (final) are important to identify Government support for R&D or priority of R&D support in Central Government Budget. This covers not only government-financed R&D performed in government establishments, but also government-financed R&D in the other three national sectors (business enterprise, private non-profit, higher education) as well as abroad (including international organisations).

Indirect R&D support covers tax incentives and exemptions based on the Law 193, 5520, 4691, 5746 and 3065. These figures were calculated by using data from Revenue Administration. Indirect R&D support could not be calculated as the Corporate Tax Returns were postponed in the scope of Coronavirus  (COVID-19) precautions with the decision taken Revenue Administration regarding the Tax Procedure Law numbered VUK-127 / 2020-6. Following the provision of the data, indirect R&D supports will be calculated and shared separately as a statistical table.