it Is believed that the Republic could be on the verge of default. Is it so?
Baktygul Jeenbaeva: first of all you Need to understand what constitutes a default. In simple terms, this is a situation where the government could not meet its financial obligations. We have the same people receive wages, pensions, benefits. Moreover, money allocated for national projects. In particular, for water supply regions, road construction, judicial and legal reform, digitalization. In short, activities which are incorporated in the National development strategy for the current year are being fulfilled. Maybe not to the extent I would like, however, the means allocated for these purposes.
Another thing – the very situation in which we find ourselves. We do not deny that it is complex, and we have a lot of problems. However, as elsewhere in the world. For a pandemic of this magnitude was not ready to nobody. Yes, the budget deficit we have a really big, however, the issue of default still not worth it.
what are the chances that because of the difficult economic situation, difficulties may arise with the execution of protected items?
Baktygul Jeenbaeva: Last year we finished with a deficit of 800 million soms that the level of GDP is 0.1 per cent. В2020, we received extraordinary budget gap of nearly 28 billion soms, which is very close to five percent of GDP.
Now a big burden on the budget provides the health sector. We Finance the purchase of personal protective equipment for health professionals, ventilators, oxygen concentrators, medical drugs. Additionally, the money allocated for payments to doctors and law enforcement officials. But budgetary obligations we fulfill on time.
What means other than reducing current expenditures, was used to increase the funding of health care?
Baktygul Jeenbaeva: use of all possible sources. Including the state budget reserve. It is formed in case of some emergency. Today, unfortunately, it is almost all used.
Some parliamentarians argued that the money that the Republic had provided the international financial institutions, will only last until the end of the year. What’s next?
Baktygul Jeenbaeva – We hope that business will recover and will begin work. Respectively, will resume the tax and customs payments to the budget. I would also like to explain why we have resorted to the financial support of donors. When closed borders, reduced the number of freight and, consequently, decreased the amount of the tax and customs duties – and our country is very dependent on imports – started a chain reaction. The company began abbr��Schat production, have suspended trade that led to reduction of receipts in Treasury. It was necessary to take action, we appealed to international donors. Believe me, at that time it was the only way out of the situation. I will say more, we made it one of the first in the world, and we immediately went to meet. Moreover, the financial support requested by countries even with a much better developed economy than ours. Now in the Republic the business slowly recovering, and we hope that this process will continue.
Is, if I understand correctly, a positive one. A negative?
Baktygul Jeenbaeva: With the spread of infection faced not only our country. Ill the whole world. So be sure that the international community will not sit idly by, and certainly will be taken some measures and decisions to revive the economy.
World leaders are in the process of continuous dialogue on current and forecasted situation.
the Finance Ministry is often blamed for is that you develop a socially oriented budget. And how budget development?
Baktygul Jeenbaeva: the development Budget is an integral part of the national budget and includes state investment, capital investment and incentive grants. So the need for the emergence of a separate document there. For the year 2020 for program development are included 39,7 billion soms. The main share of 32.1 billion soms – falls on public investment.
In the development budget 2020 also includes spending on capital investments in the amount of 2.4 billion soms. These funds are mainly earmarked for the construction and reconstruction of objects socially-the economic importance of having a high degree of preparedness and planning for delivery and commissioning. These include projects in the areas of education, health, culture, sport, infrastructure of border areas, as well as roads, waterworks.
in addition, an integral part of the development budget are stimulating grants. Their volume in 2020 reached 600 million soms. Is the funds provided by the Executive to local authorities for the implementation of programs for socio-economic development of territories.
the Incentive grants are intended to Finance projects for the construction, repair, reconstruction and improvement of auxiliary facilities of institutions of education, health, culture, sports, housing, agriculture, water management and other objects. Means are provided in the form of co-financing in addition to mobilized resources of local budgets, international organizations and other entities.
What adjustments will be made to the budget before the end of thYes?
Baktygul Jeenbaeva – We consider two scenario: pessimistic that the situation with the spread of coronavirus infection will worsen, and optimistic, if the number of infections will decline. In both cases, we calculate the budget and, I believe, will be able to meet their obligations for the payment of salaries, allowances and other social payments.
by the Way, the so-called emergency budget, the Parliament approved in may. In September we plan to amend it. The changes will affect the health sector. Here, the financing will be increased. The situation with COVID-19 deteriorated sharply in June and July, and we were obliged to react. However, it was necessary to reduce the costs of some non-priority articles. In particular, for the repair of certain buildings, acquisition of equipment and fuel to government agencies and similar expenses.
