The Ministry of Finance presented data on execution of the republican budget for eight months of 2018. There is still budget deficit, that is, we have not yet learned to spend as much as earned.
24.kg news agency studied the data in order to understand how budget money is spent.
How does the state earn money?
Revenues of the republican budget for 8 months of 2018 amounted to 84,366.4 billion soms. The main source of replenishment of the treasury is taxes — 66,495.4 billion soms. At least 39,455.7 billion of the sum were collected by the State Tax Service and by the customs — 27,039.7 billion soms.
Non-tax revenues amounted to 14,353.6 billion soms. Most of the money in this item came from special funds from public institutions (for example, paid services of state structures) — 5, 652.4 billion soms. Dividends on the state shareholding and profits of enterprises with a state share amounted to 3,969.4 billion soms.
What was the money spent on?
Budget expenditures in January-August amounted to 87,181.6 billion soms.
Traditionally, the largest sums are spent on social protection, education and general government services. The least amount of money was allocated for environmental protection — 418.3 million soms.
The state debt of Kyrgyzstan consists of external (foreign loans) and internal (issue and redemption of government securities). In January-August, 2018, the following sums were spent on servicing of the national debt:
- external — 6,870,911 billion soms;
- domestic — 8,641,563.4 billion soms.
Other 11,692.2 billion soms were spent on the acquisition of non-financial assets. Including the cost of major repairs of roads amounted to 2,513 billion soms, the purchase and construction of other facilities — 1,953 billion soms.
How to cover the deficit?
The budget of Kyrgyzstan for the eight months of 2018 remains deficit. But there is good news. This year, the deficit is not so critical. Expenditures exceeded revenues by only 2,815.3 billion soms.
The budget deficit is largely connected with investing in non-financial assets, including spending on the State Investment Program.
Situation with external sources for covering the deficit is more complicated. Kyrgyzstan received loans of 3,468.4 billion soms, and paid back 4,621.1 billion soms on previously taken loans. Put simply, debt repayments turned out to be higher than revenues. Therefore, the Ministry of Finance had to look for money for the growing expenses from domestic sources.
One of them is the issue of government securities. The budget was replenished by 13.6 billion soms thanks to them. But it is worth noting that the sale of securities increases the domestic debt of the country.
Recall, the Ministry of Finance prepared a draft budget for 2019 that turned out to be deficit again. The Prime Minister Mukhammedkaly Abylgaziyev criticized the ministry, saying that it was necessary to move away from the practice of getting foreign loans to cover the budget deficit.