The Ministry of Finance (MoF) has worked out a draft law on the country’s national budget for 2019. The budget indicators reportedly reflect the economic and social development of the country.
An official source at MoF says social spending will account for nearly 44 percent (some 10.4 billion somoni) of budget allocations.
According to him, revenues are projected to stand at some 23.4 billion somoni, which is nearly 2.4 billion somoni more compared to the 2018 national budget, and expenditures at some 23.8 billion somoni (nearly 2.5 billion somoni more compared to the 2018 national budget).
The budget deficit will amount to 391 million somoni, which is equal to 0.5 percent of the country’s gross domestic product (GDP). The budget deficit is expected to be covered due to attraction of grants and loans (200 million somoni) from international financial institutions.
Besides, the MoF intends to increase the volume of special funds of the federally funded institutions by 65 million somoni and implement 798 million somoni worth of national investment projects.
The budget reportedly projects expenditure of some 725 million somoni in the agrarian sector.
In 2019, more than 4.2 billion somoni are expected to be spent on the transportation-communication system.
The budget earmarks more than 4 billion somoni for implementation of investment projects due to attraction of external loans and grants, the source noted.
The budget projects expenditure of more than 1.2 billion somoni for external debt service and 228 million somoni for internal debt service.
GDP is projected to stand at more than 78.2 billion somoni next year, which is 8.7 billion somoni more compared to 2018.
The real economic growth is projected to rise 7.6 percent next year, while the inflation rate is expected to be 6.3 percent.
Recall, the 2018 revenues were projected to be 21.003 billion somoni, which is 7.0 percent or 1.3 billion somoni more compared to the 2017 national budget, and expenditures at 21.337 billion somoni (more than 1.4 billion somoni more compared to the 2017 national budget).
Social spending accounted for nearly 50 percent of budget allocations, with more than 30% earmarked for public education alone.
The budget deficit stood at 334 million somoni, which was equal to 0.5 percent of the country’s GDP.
The 2018 budget projected expenditure of 3.8 million somoni in the education sector and more than 1.5 billion somoni in the health sector.
In 2018, 1.462 billion somoni were expected to be spent on the transportation-communication system.
Last year, the budget earmarked 3.2 billion somoni for implementation of investment projects.
In 2018, the budget projected expenditure of nearly 1.234 billion somoni for external debt service.
