DUSHANBE, June 25, 2008, Asia-Plus — Over the past several years, the expenditures in Tajikistan’s economy have been increasing very rapidly. Thus, in 2008, Tajikistan’s aggregate expenditures rose 36 percent and in 2007, they rose 50 percent.
Mr. Sudarshan Canagarjah, Lead Economist at the World Bank, remarked this in Dushanbe on June 24, while presenting findings of the Second Tajikistan Programmatic Public Expenditure Review conducted by the World Bank at a meeting with researchers, economists and media representatives.
Rapid growth in the total expenditures is outstripping actual growth in aggregate demand in the country considerably that has led to higher inflation rates and increase in the trade deficit in Tajikistan, the World Bank expert said.
According to the programmatic public expenditure review, a sharp rise in rated expenditures is connected, first of all, with increasing demands of private consumers, which are connected with money remittances to Tajikistan. The volume of monetary aggregates has also increased in Tajikistan: in 2006 by 60 percent and in 2007 by 78 percent.
Mr. Canagarjah noted that the objective of the Second Tajikistan Programmatic Public Expenditure Review is to analyze macroeconomic situation in the country and study how efficiently budgetary funds are being spent in Tajikistan.
According to the World Bank Dushanbe Office, the Second Tajikistan Programmatic Public Expenditure review was presented to the Tajik government and relevant ministries and organizations on June 23. The second meeting of representatives of Tajik authorities with World Bank’s consultants to discuss in details proposals made on the basis of the review will be held in September.
