Baku, Azerbaijan, Oct. 24
By Elena Kosolapova - Trend:
Inflation rate will exceed 10 percent in Kyrgyzstan in 2014, 24.kg reported with the reference to Kyrgyz Finance Ministry.
"Due to the increase in utility prices, revision of electricity and heating tariff policy, sharp increase in price for US dollar compared to som and rise in food prices, the inflation is expected to reach 10.6 percent in 2014 compared to 8 percent level approved earlier," the ministry said.
The real GDP growth in the country is expected to reach just 4.5 percent compared to the 6.9-percent level approved earlier. New forecast forced the finance ministry to amend the state budget.
Kyrgyz officials explain this situation with the slowdown in the growth of industry, agriculture and services.
The official proposal is to increase the overall budget income including received grants to almost 6.587 billion soms ($1 = 56.08 soms). Tax revenues will exceed 70 billion soms and decrease by 2.4 billion soms compared to the approved level due to decline in imports.
The sum of foreign grants is expected to increase by 1.379 billion soms due to a $60 million grant from Russia, and will reach 9.362 billion soms. The forecast of the investment income grant is reduced by 1.694 billion soms.
Non-tax revenues are expected to increase by 7.637 billion and hit almost 20.672 billion soms.
Adjusted expenditures of the republican budget for 2014 are expected to reach 115.674 billion soms or 29.8 percent of GDP, which is 12.775 billion less compared to the earlier approved budget.
The budget deficit will increase by 6.188 billion soms from the earlier approved level and hit 15.631 billion soms (4 per cent of GDP).
Edited by S.I.