SSDF Explained: The Financial Power Behind Turkey’s Indigenous Defense
The Defense Industry Support Fund (SSDF), which plays a key role in Turkey’s pursuit of independence in the defense industry, is a special-budget public fund that supports domestic production and finances strategic projects.
What is SSDF?
SSDF is a special-budget fund established in 1985 under Law No. 3238 and managed by the Defense Industry Presidency (SSB).
The fund’s primary purpose is to meet the needs of the Turkish Armed Forces (TSK) and security forces through indigenous and national means, and to strengthen Turkey’s strategic independence in the defense industry.
Usage Areas
By decisions of the Defense Industry Executive Committee, SSDF resources are used in the following areas:
- Modernization of the TSK
- Strengthening the technological infrastructure of security agencies such as Police, Gendarmerie and MIT
- Financing of large-scale projects such as the National Combat Aircraft (KAAN), Altay Tank, UAVs/UCAVs
- R&D activities and SME support
Sources of Funding
1. Tax-Based Allocations
- 6% of Income and Corporate Tax
- 25% of Inheritance and Transfer Tax
- 20% of Motor Vehicle Tax
2. Other Sources
- Budget appropriations
- Transfers from TSK foundations such as ASELSAN, TUSAŞ and ROKETSAN
- Shares from entertainment venues
- Donations and grants
- Income from fund assets
- Transfers from other statutory funds
Success Projects Supported by SSDF
- National Combat Aircraft (KAAN)
- Altay Tank
- Bayraktar TB2, Akıncı, Anka
- ATAK Helicopter
- MİLGEM warships
- HİSAR and SİPER air defense systems
- Bora, Cirit, Kasırga missiles
- Satellite and space projects
Future of SSDF and Pending Legislation
A new bill submitted to the Turkish Grand National Assembly proposes to expand the fund’s scope and increase its revenues. Proposed new sources include stamp tax allocations, income-tax declaration transfers, and fixed shares from title-deed and notary transactions. A proposed levy on credit cards was removed after public reaction.
Frequently Asked Questions
To whom does SSDF report? Managed by the Defense Industry Presidency (SSB), with final decisions taken by the Defense Industry Executive Committee.
To whom does SSB report? To the Presidency of the Republic.
Current SSB Chairman? Prof. Dr. Haluk GÖRGÜN, appointed June 3, 2023.
Turkey’s rank in defense industry? 12th in arms exports per SIPRI; 8th in military power per Global Firepower.
Conclusion
SSDF is the fundamental financial cornerstone of Turkey’s strong and independent defense industry. With new regulations and increased resources, the fund is expected to play an even more active role in the coming period.
