DUSHANBE, September 27, Asia-Plus — Tajikistan ought to carry out institutional reforms in the system of public finance management, Sudharshan Canagarajah, Senior Country Economist for Tajikistan and head of team for preparation of the Program Survey of Public Expenses in Tajikistan, remarked at a meeting to present the survey in Dushanbe on September 26.
According to him, Tajikistan should also create favorable climate for private investment flows. He noted that the country’s public finance management system should be drastically improved. If it is not done it will lead not only to increase in public expenses that will probably be not productive but will also impede economic growth.
According to Mr. Canagarajah, a long-term fiscal sustainability of Tajikistan will be in danger if the external debt volume limitations are not introduced and large quasi-fiscal deficiency in electricity is not removed through increasing electricity rates.
He noted that priorities should include public services for improvement of human capital and rehabilitation of the present infrastructure but not capital expenditure on basic assets.
