ASHGABAT (TCA) — Turkmenistan’s state budget has almost halved in US dollar terms over the past two years, the Chronicles of Turkmenistan independent website reports.
According to the state budget approved by Turkmenistan’s Parliament as reported by the Finance Ministry, the 2016 overall budget revenue was projected to total 102.478 billion Turkmen manats whereas expenditures were set at 104.878 billion manats.
Converted into US dollars at the official exchange rate the budget totals $29.3 billion. However, it is impossible to exchange foreign currency at the state-determined exchange rate in Turkmenistan. Residents exchange money on the black market where the dollar exchange rate has already reached 7.8 manats per one dollar.
In January 2016, when the unofficial ban on free foreign currency conversion in Turkmen banks was introduced, the exchange rate on the black market was 4.2 manats per US dollar. This means that this year’s dollar exchange rate averaged 6 manats.
Consequently, the state budget for 2016 (converted at the exchange rate of 6 manats per dollar and provided that the exchange rate will not increase any further in the two remaining months) will equal only $17 billion.
In comparison, the 2015 budget also totaled 102 billion manats, the same as in 2016. However, currency exchange rates were much lower and more stable last year. In January 2015 the official dollar rate was 3.5 manats. In other words, when converted into US dollars the budget amounted to $29.5 billion.
In 2014 the state budget was estimated at 94 billion manats. However, because $1 cost 2.85 manats, when converted into US dollars, the budget equaled $33 billion. In other words, over the past two years Turkmenistan’s state budget has almost halved, the Chronicles of Turkmenistan concludes.
