Abylgaziev: In 2019, real GDP growth is forecasted to reach 4%

Bishkek, Nov. 12, 2018. /Kabar/. In 2019, real GDP growth is forecasted to reach 4%, which will be provided by the contribution of such sectors of the economy as services, construction, agriculture and industry, Prime Minister Muhammedkaliy Abylgaziyev told during an extended meeting of the Committee on Budget and Finance of the Jogorku Kenesh (Kyrgyz Parliament).

At the meeting of the Committee, the draft Laws on Amendments to the Law on the Republican Budget of the Kyrgyz Republic for 2018 and Forecast for 2019-2020 and on the Republican Budget of the Kyrgyz Republic for 2019 and Forecast for 2020-2021 were considered.

Abylgaziyev told that by the end of 2017, the volume of GDP was 520.9 billion soms, the real growth rate of the economy was 4.6%, with a forecast value of 3.5%.

“The changes to the republican budget of 2018 are a reflection of the current situation with the update of the macroeconomic forecast of the country and are associated with solving problems aimed at balancing the budget and economic trends between the main trading partners. Based on the updated budget of 2018, GDP will be 558.4 billion soms, the economy will grow by 2.8%. The revenue part of the republican budget in 2018 is forecasted to reach142 billion soms, which is 1.1 billion soms more than the approved budget. Tax revenues are proposed to increase by 2.7 billion soms due to improved administration. At the same time, the work of the Government of the Kyrgyz Republic will be aimed at the development of regions and ensuring sustainable economic growth,” Abylgaziyev said.

The Prime Minister noted that there was a need for the government to finance a number of socially important and relevant activities not originally budgeted for.

“In order to balance the budget, government spending on the purchase of goods and the implementation of current expenses in the amount of 4 billion soms has been optimized. The PIP costs at the expense of external loans and grants have been reduced by the amount of 14.9 billion soms. Thus, the expenses of the republican budget for 2018 amounted to 157.2 billion soms or are reduced by 3.9 billion soms, ” the head of the Cabinet said.

Abylgaziyev added that throughout the country, 150 million soms were additionally allocated to provide schools with Internet.

Funds were also allocated for equipping veterinary laboratories and border veterinary control points on the state border of Kyrgyzstan in the amount of 150 million soms. For the construction and renovation of phytosanitary laboratories, funds were allocated in the amount of 62 million soms (the cities of Batken and Jalal-Abad).

“The Government commitments regarding protected expenditure such as wages, benefits, pensions and other social benefits will be fully financed. Decisions made to optimize budget expenditures will reduce the budget deficit in 2018 to 2.7% of GDP. In nominal terms, the size of the deficit will decrease from 20.3 billion soms to 15.2 billion soms,” Abylgaziyev said.