State Budget - The Times Of Central Asia

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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."

Finance Economy Foreign debt Government State Budget

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.)

Nuclear power Energy Economy Referendum State Budget Nuclear Energy

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.

China Export/Import Bilateral Trade State Budget CIS International trade

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.

taxes Economy Strategy Government poverty eradication State Budget

Uzbekistan Targets Economic Growth and Poverty Eradication

According to a report newly published by the US Department of State, titled “2024 Investment Climate Statements: Uzbekistan”, the country aims to develop its economy, work towards eliminating poverty and achieve above-average income status by 2030. The government regards foreign direct investment as key to attaining its goals, and increasing interest has been expressed by American investors. Although challenges remain, Uzbekistan has the potential to become a regional economic leader thanks to its large and growing population, rich natural resources, and developed infrastructure. Bilaterally landlocked, the economy largely depends on trade with regional neighbors and thus, Uzbekistan cannot provide stable employment for its rapidly growing population of 37 million. State policy aims to ensure social stability and stabilize growth rates by directing public and private investments to areas that will create new jobs and strengthen the country’s economic sovereignty. The Government of Uzbekistan (GOU) manages investment flows through annual and mid-term investment programs, mainly concerning developments in infrastructure, industrialization, and natural resource projects. The current National Investment Program for 2023-2025 comprises nearly 800 projects worth $55.4 billion. Medium-term targets for 2030 are eradicating poverty and becoming a high-middle-income country. Foreign ownership and the control of airlines, railways, long-distance telecommunication networks, and other sectors related to national security require special GOU permission. By law, because foreign nationals cannot obtain a license or tax permit for individual entrepreneurship in Uzbekistan, they cannot be self-employed and must be employed by a legally recognized entity. The law in Uzbekistan states that local companies with at least 15% foreign ownership can qualify as having a foreign investment. The minimum fixed charter-funding requirement for a company with foreign investment is 400 million UZS (USD 1 equals 12,500 UZS as of March 2024). Minimum charter funding requirements can differ for business activities subject to licensing. For example, that for banking activities is 100 billion UZS; for microcredit organizations, 2 billion UZS; for pawnshops, 500 million UZS; for production of ethyl alcohol and alcoholic beverages,10,000; for lotteries, 200 million UZS; and for tourism operators, 400 BCRs; Base Calculation Rates (BCR) (one BCR equals 340,000 UZS or about $27, as of March 2024). Foreign investment in media enterprises is limited to 30%. The government closely monitors foreign investment in strategic sectors such as mining, energy, transport, banking, and telecommunications. There is no straightforward screening process, and some laws are designed to protect domestic industry and limit foreign competition, such as banning 529 imported goods in 2021. The ban applies when there are at least two domestic suppliers but no restrictions are imposed on US investors. Uzbekistan has laws to protect entrepreneurs and investors, including “On Competition” and “On Investments.” However, the rules can be complex and sometimes contradictory. In some cases, businesses must comply with government decisions that are unavailable to the public. Foreign investors often seek benefits through Presidential Decrees to avoid such issues, though these can be easily revoked. The regulatory system reform is still in progress. The government’s “Uzbekistan 2030” development strategy includes a range of...

Japarov State Budget

Kyrgyzstan’s President Apologizes Over Niece’s Use of State Helicopter

It was a fairytale setting for a marriage proposal. The fiancée of the niece of Kyrgyzstan’s president asked her to marry him after the pair traveled by helicopter to the mountains near Bishkek. The problem? The helicopter belonged to the Ministry of Emergency Situations, a revelation that prompted scorn on social networks and drew an apology from President Sadyr Japarov, who has campaigned against corruption. The ministry said the aircraft was “legally leased” and Japarov said the government sometimes rents its helicopters for the benefit of the state's coffers. But the ostentatious use of the government asset, flaunted in a slick video showing Japarov’s niece, Lazat Nurkozhoeva, in the helicopter, was too much for some commentators who fumed about alleged government hypocrisy. “Relatives of the country's leadership should be an example to others. I am trying to stop waste,” Japarov said in an interview with the official Kabar news agency on Wednesday. He said his niece, Lazat Nurkozhoeva and her fiancée loved each other and the proposal would have gone off without a hitch if it had been handled in a simpler way. “If an ordinary citizen, a businessman, a tourist, or an investor wants to rent helicopters, the state will gladly provide them. Because every penny received from the lease goes to the state and is concentrated on the purchase of new helicopters. Thus, the aircraft fleet is continuously updated,” Japarov said. The Kyrgyz government has a total of about 20 helicopters, he said. “I used to criticize others. Now it’s come back to me,” Japarov said in his apology. In a statement, the Ministry of Emergency Situations said the “rental of the helicopter discussed in social networks” was arranged with a legal contract and that it received the equivalent of about $1,800 for the flight that lasted 56 minutes and occurred on Monday. Lazat Nurkozhoeva has a high profile on social media. She has created her own clothing brand and won the Miss Kyrgyzstan beauty pageant in 2020.