The Central Asian state of Kyrgyzstan is likely to deliver a healthy fiscal performance over the medium term, with the Ministry of Finance expecting more budget surplus ahead. This optimistic outlook is supported by a corresponding growth in government revenues which is expected of increase from 465. up to 3 billion soms in the year 2025 will increase up to 655 billion soms by the year 2029. While it is noteworthy that the surplus in terms of the GDP will reduce—from 2. In 2015, the proportion of households with such problems was 5%, which in 2025 is expected to rise to 6% to 1.9% by 2029. The government is still optimistic in its ability to balance its financial competence and to provide for the people responsibly.

One of the factors that have been instrumental in achieving this surplus is an increase in revenue by the government, especially through tax collection. The total VAT revenues experienced a significant surge, increasing by approximately 22% and 3% between January and May of 2024, largely due to notable increases in domestic trade and import activities. These gains have been achieved with productivity gains outstripping the rise in government spending, which rose only by a meager 6.6% in the same period of time.

This will, of course, be important for Kyrgyzstan as it works towards decreasing its national debt, which currently sits at $5.9 billion. There are budgetary provisions of $74 million for debt servicing for the year 2024; the country envisages less dependence on external creditors and utilizes part of the surplus for reinvestment and development in the domestic economy.

Source: The Times of Central Asia