State Budget - The Times Of Central Asia

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Tajikistan to Increase Defense Budget

Tajik authorities plan to increase the 2025 defense, law enforcement, and judiciary budget to 4.7 billion somoni ($446 million); a rise equivalent to $92 million compared to the $354 million spent in 2024. As a percentage, spending on the army and security forces will rise to 2.8 percent of GDP, up 0.2 percent from the previous year. In adherence to the State Secrets Act, data on the breakdown of the budget remains confidential. However, issues concerning the efficient spending of allocated funds have recently come to light. In August 2024, the Agency for State Financial Control and Anti-Corruption reported that over 120 million TJS ($11.3m), intended for clothing and food for servicemen, had been embezzled from the Defense Ministry. In response, a criminal case was opened against 52 suspects, including ministry officials. According to documentation of increased military spending in Central Asia by the Stockholm Institute for Peace Research (SIPRI), in 2023, Tajikistan, Kazakhstan, and Kyrgyzstan's expenditure on defense totalled $1.8 billion. Figures for Uzbekistan and Turkmenistan remain unknown. The growth of the defense budget in the region is due to several factors, and in particular, border conflicts between Central Asian countries, the unstable situation in Afghanistan, and the war in Ukraine which have forced the region's states to strengthen their defense and revise strategic priorities regarding security. Changes in the geopolitical environment have also impacted military expenditure. Whilst Central Asian states previously relied heavily on Russia for security, the number of external partners has increased significantly. Alongside Russia, countries such as Turkey, Iran, Saudi Arabia, the United States, Germany, France, China, and Belarus, are beginning to play an essential role in the region's security. They also supply arms and military equipment. Experts note that increasing defense budgets, while necessary to maintain stability, cannot solve all security-related problems, and for the foreseeable future, political instability and internal factors remain severe challenges for Central Asian countries.

State State Budget Currency Gold Finance

Uzbekistan’s Gold and Currency Reserves Reach Record Levels

As of September 1, Uzbekistan's international reserves reached $39.15 billion. This reserve value is a record indicator for after 2018 when data disclosure began. In August, the value of international assets increased by $1.75 billion, or about 4.7%, compared to July's increase of $1.06 billion. This increase was mainly due to gold. Although the net physical volume of gold in official reserves decreased from 12.1 ounces to 12 ounces during August, the metal's price on the world market has increased significantly. Due to this, the value of the gold part of reserves increased by $1.24 billion or 4.4% to $30.39 billion in one month. Since the beginning of 2024, the price of gold has risen by 20% on the world market. Last month, the price of standard gold bullion exceeded a million dollars for the first time in history. Uzbekistan was one of the countries that bought the most gold in July. In August, reserve assets in foreign currencies increased from $7.68 billion to $8.19 billion (+ $503.1 million). Uzbekistan’s gold-currency reserves have increased by $4.59 billion or 13.3% since the beginning of the year. The Times of Central Asia previously reported that Uzbekistan’s gold reserves reached $37.4 billion in August.

public debt Finance Forecast Economy State Budget

Kyrgyzstan Forecasts Five-Year Budget Surplus

The Ministry of Finance of Kyrgyzstan has published a forecast of total revenue for the next five years, indicating that by 2029, the country's state budget revenue will grow to KGS 655 billion ($7.8 billion). At the end of 2024, Kyrgyzstan's state budget surplus will amount to KGS 11.2 billion ($131.7 million), while revenue this year amounted to KGS 414 billion ($4.8 billion). As previously reported by TCA, the introduction of cash registers and the fight against crime have impacted on growth. Another contributing factor was mentioned by Head of the Cabinet of Ministers, Akylbek Japarov, who stated, “In fiscal policy, we are adopting technology that is fit for the times. Taxpayers are pleased with these changes. They no longer have to wait in queues; they can quickly file reports and receive the necessary documents online.” He also commended the promotion of domestic and foreign investments and the development of Kyrgyzstan's industrial sector which facilitate the growth of the republic's economy and, in turn, state budget revenue: “Since the beginning of 2024, 29 enterprises have been put into operation. Major projects are being implemented, such as constructing the Kambarata hydroelectric power plant and the China-Kyrgyzstan-Uzbekistan railroad. There are plans to develop the tourism sector." The Kyrgyz Finance Ministry said in a report that the annual growth in state budget revenue will provide a surplus which will be used to repay public debt. The state budget is currently projected to receive KGS 414.5 billion ($4.8 billion) in 2024, KGS 465 billion ($5.4 billion) in 2025, KGS 505 billion ($5.9 billion) in 2026, and KGS 655 billion ($7.7 billion) in 2029. In a statement to TCA, the Finance Minister explained, “Large expenditures are projected for the medium term to pay down public debt. The projected budget surplus will be used for expenditures related to activities of economic orientation and covering the state's liabilities."

State Budget Foreign debt Economy Finance Government

Uzbekistan’s Debt Reaches $37 billion

According to Kun.uz, based on data issued by the Ministry of Economy and Finance of Uzbekistan, as of July 1, 2024, the state debt of Uzbekistan - $30.9 billion foreign and $6.1 billion domestic - exceeded $37 billion for the first time. For comparison, as of July 1, 2023, the state debt amounted to $31 billion 628 million, indicating an increase of $5.4 billion or 17% in just one year. As stated in the report, the growth rate of Uzbekistan’s foreign debt has increased sharply in recent years. In particular, at the end of 2017, the state debt amounted to $11.6 billion, and by the end of 2023, reached $34.9 billion, a threefold increase. By the end of the first half of the year, 42% of the total state external debt ($13 billion) was allocated to budget support, 19% ($5.7 billion) to the fuel and energy sector, 9% ($2.7 billion) to transport and transport infrastructure, and 9 % to agriculture and water management ($2.7 billion.)

Energy Economy Referendum State Budget Nuclear Energy Nuclear power

Nuclear Plant Referendum in Kazakhstan Will Cost $33 Million

Kazakhstan's Central Election Commission (CEC) has announced that 15.5 billion tenge ($33 million) will be allocated to hold a referendum on constructing a nuclear power plant. CEC member Sabila Mustafina said the amount includes organizational costs and holding the referendum at 78 foreign polling stations in 63 countries. The main part of the funds — 71% — will be spent on labor remuneration for more than 77,000 election commission members. The referendum will be held on October 6. Kazakhstan's president Kassym-Jomart Tokayev signed a decree on holding the referendum on September 2, 2024. In his address, Tokayev emphasized that constructing nuclear power plants is a strategically important issue for the country. Tokayev noted the need to use reliable and environmentally friendly energy sources in the context of the global energy deficit. He emphasized that today, about 200 nuclear power plants operate in 30 developed and developing countries. Tokayev noted that it is vital for Kazakhstan to consider long-term national interests, environmental safety, and the population's needs, as well as the need to make thoughtful decisions on constructing nuclear power plants. The president also emphasized the importance of public support in making important decisions for the country. He said that the population should have a say in every step related to major infrastructure projects, such as the construction of nuclear plants. Discussions on constructing a nuclear power plant in Kazakhstan have been ongoing for many years. The need for it first emerged after the closure of the Soviet reactor in Aktau in 1999.

Bilateral Trade State Budget CIS International trade Export/Import China

Russia Remains Tajikistan’s Largest Trade Partner

Russian news agency TASS is reporting that, according to the Statistics Agency under the President of Tajikistan, trade between Tajikistan and Russia has exceeded $1.1 billion in 2024 so far. During the first seven months of 2024, the trade volume between the two countries was 12.1% more than in the same period of 2023. Russia continues to be Tajikistan’s largest trade partner, and also accounted for 26.7% of all imports entering the country during this period. In terms of bilateral trade, China remains in second place, with turnover to and from Tajikistan of almost $1 billion. Rather surprisingly, Switzerland has now became Tajikistan's leading export partner. In the first seven months of 2024, Tajikistan sent 26.6% of its products to Switzerland. In January-July of this year, the trade volume between the two countries amounted to more than $641 million, and compared to the same period in 2023, it increased almost 110 times.