The Ministry of Finance of Kyrgyzstan presented preliminary data on the implementation of the budget of the republic for 9 months of 2018. It is interesting that budget deficit in 2018 was caused only by spending on purchase of non-financial assets.
How does the state earn money?
Revenues of the republican budget in the third quarter of 2018 amounted to 95,628.2 billion soms. For a month, budget revenues increased by 11,261.8 billion soms.
The main source of replenishment of the budget were tax revenues. They brought to the budget 75,485.2 billion soms. Including the State Tax Service collected 44,444.6 billion soms, the Customs Service — 30,840.6 billion soms.
Non-tax revenues amounted to 16,039.2 billion soms. The largest revenues within this item came from special means of budget-funded institutions (for example, payment for the provision of services) — 6,480 billion soms, as well as dividends and profit from the state package of shares — 4,246.6 billion soms.
What the money was spent on?
Budget expenditures in January-September 2018 amounted to 97,669.1 billion soms.
Social protection, education, and general government services traditionally have the highest expenditures. The least amount of money was allocated for environmental protection — 527.1 million soms.
The state debt of Kyrgyzstan consists of external (foreign loans) and internal (issue and redemption of government securities). In January-August 2018, payments were as follows:
- On external debt — 7,816,911 billion soms;
- On internal debt — 9,902,062 billion soms.
Other 13,716.9 billion soms were spent on purchase of non-financial assets. This includes expenses for the overhaul of roads — 2,871.1 billion soms and construction of other facilities — 2,261.8 billion soms.
Ministry of Finance reduces deficit
If we do not take into account acquisition of non-financial assets, budget expenditures are much less than revenues. Thus, expenses of the treasury amounted to 83,852.2 billion soms. This is 11,676 billion less than revenues. However, the volume of acquired non-financial assets turned out to be more than the surplus.
According to the results of the third quarter of 2018, the deficit of the republican budget of Kyrgyzstan amounted to 2,040.9 billion soms.
This year is difficult for Kyrgyzstan. The country did not receive grants and concessional loans from the International Monetary Fund and the Asian Development Bank. As a result, Kyrgyzstan received from external sources 3,937.3 billion soms, and repaid liabilities in the amount of 6,090 billion soms. Simply put, debt repayments turned out to be higher than revenues.
The state actively sells government securities (treasury bills and bonds).
Since the beginning of the year, the state budget received 14,933.71 billion soms from issue of government securities.
The Prime Minister of Kyrgyzstan Mukhammedkaly Abylgaziev has already criticized the Ministry of Finance for including funds from donors that have not been received in the draft budget. He proposed to draw up the budget only on the basis of real income.
«We need to include in the budget only those funds that really will be received. But it turns out that we write one thing in the draft, and then we amend for billions of soms. It is not right. We are criticized for this. We can additionally include the incoming funds in the budget by a government decree or amendments to the law,» Mukhammedkaly Abylgaziev suggested at the last meeting of the government.