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Kyrgyzstan's budget deficit projected to widen to 4.2% of GDP in 2021: IMF

 

Фотографии: akipress.kg

April 2, 2021, 16:57       Источник akipress.kg       Комментарии

AKIPRESS.COM - In 2021 the general government budget deficit is projected to widen to 4.2 percent of GDP subject to availability of financing, according to the IMF statement following a remote mission from March 12 to March 30 in the context of the 2021 Article IV consultation with the Kyrgyz Republic.
This reflects a cyclical recovery in tax revenue and the observed improvement in tax compliance due to digitalization of tax filings, a moderate decline in the public sector wage bill after accounting for the planned increase in wages of certain categories of public sector workers, and the budgeted increase in spending on goods and services and investment.
This fiscal stance maintains the needed fiscal stimulus while preserving some fiscal space in view of the uncertain outlook.
However, if sufficient financing cannot be mobilized, the authorities should identify contingency expenditure cuts while preserving health and social spending, and investment projects with the highest expected social and economic returns. Engaging with international partners to demonstrate their credible commitment to reforms would help to mobilize more concessional resources given that higher domestic financing may increase borrowing costs.

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