Subsidies amounting to approximately 2.9 billion somonis (over US$265 million) have been allocated in Tajikistan’s 2025 republican budget.
These funds are earmarked for the budgets of Khatlon province, GBAO (Gorno-Badakhshan Autonomous Region), the city of Hisor, and nine districts subordinate to the center.
More than 60% of the subsidies from the republican budget will go to Khatlon province, totaling 1,743,831,000 somonis. Just over 14% (409,009,000 somonis) will go to GBAO, while about 26% (747,160,000 somonis) is allocated for the local budgets of 10 districts subordinate to the center.
What are subsidies, and how are they different from grants and subventions?
A subsidy is money allocated from a higher-level budget to a lower-level budget for funding specific public works or services.
Sometimes, the flow of funding can also move from lower-level to higher-level budgets.
In Tajikistan, republican budget subsidies are typically used to cover shortfalls in local budgets for paying public sector salaries.
Many people confuse subsidies with grants and subventions, failing to understand the differences, and incorrectly refer to some regions as “grant-dependent.”
To clarify the differences, consider these concepts in simple terms:
- Subventions are provided for a specific period and purpose. If unused within the specified timeframe or purpose, they must be returned to the republican budget. For example, giving your child money to buy specific groceries. If certain items are unavailable, the remaining money should be returned to you.
- Grants are co-financing arrangements where the local budget partially funds the target project. For instance, you help your child buy a new phone after they have saved part of the required amount.
- Subsidies are non-repayable and unconditional financial support. They resemble giving your child money for pocket expenses.
