Citizens' Budget
2020
Ministry of Finance of the Republic of Tajikistan Law of the Republic of Tajikistan "On the State Budget for 2020"
2 | Citizens' Budget of the Republic of Tajikistan for 2020
STRUCTURE OF THE STATE BUDGET
The state budget is the main source of funds, forms of formation and spending of funds of the
republican government bodies, local executive bodies of state power, self-government bodies
of settlements and villages and targeted budget funds of the Republic of Tajikistan.
The state budget is a detailed financial plan of action of the Government of the Republic of
Tajikistan for the next financial year (i.e. 12 months). The size of the state budget is limited by funds
accrued from tax and non-tax revenues, grants and loans, the sale of securities, as well as other
mandatory payments established by law.
The republican budget is form of formulation and spending of financial resources intended to
ensure the fulfillment of tasks referred to the competence of central government bodies.
Local budgets are a form of formulation and spending of financial resources intended to ensure
tasks within the powers of sub-national government bodies.
There are also expenses in the state budget that are co-financed by the republican budget and
the budgets of sub-national government bodies.
The Public Investment Program (PIP) is a combination of grants and loans from international
development partners for the implementation of socio-economic projects. In 2020, the volume
of PIP will amount to 4.524 million somoni.
Special funds are the revenues of budgetary organizations, which are obtained from the
provision of paid services.
State target funds are funds, which are formed in accordance with the legislation of the Republic
of Tajikistan via income or in the form of deductions from specific types of receipts that are used
to achieve a particular purpose.
STATE BUDGET
Republican budget
and state target
funds
Sub-national
budgets
State investments Special funds
(revenues)
50.6% 24.5% 17.4% 7.7%
3 | Citizens' Budget of the Republic of Tajikistan for 2020
BUDGET FORMULATION PROCESS
The formation of the state budget of the Republic of Tajikistan is based on the Law of the Republic
of Tajikistan "On the State Budget of the Republic of Tajikistan" in line with the Resolution of the
Government of Tajikistan, and lasts from January to December of each financial year.
Protected articles of the state budget provide critical articles of social protection of the
population with financing, regardless of changes in the state budget revenues or other shocks in
the country's economy.
Protected articles of the state budget of the Republic of Tajikistan, 2020.
MARCH
APRIL
FEBRUARY
JANUARY
MAY
JUNE
JULY
AUGUST
SEPTEMBER
NOVEMBER
DECEMBER
Development of macro-fiscal forecasts and public investment envelope
Submission of applications for new priorities & initiatives to the Ministry of Finance
Determination of government revenues and expenditures for three years
Determination of expenditure ceilings for each sector
Summing up the state budget for the previous year and the creation of a inter-
ministerial commission for the formulation of the state budget for next year
Development of sectoral instructions (Phase 1) on the formation of the state budget
Resolution of disputes on proposals for new initiatives with the Ministry of Finance
Budget hearings on sectoral expenditure ceilings
Submission and finalization of revised sectoral expenditure and revenue ceilings
for consideration by the permanent Budget Commission
Presentation of revised expenditure ceilings by sector to MABAs
Correction of macro-fiscal forecasts and public investment envelope
Submission of budget proposals by all budget organizations
Development and submission of per capita financing normatives
Revision and updating of sectoral strategic budget plans
Carrying out of budget hearings in inter-ministerial budget commission of the MoF
Preparation of the draft Law of the Republic of Tajikistan “On the state budget”
and forecast indicators of the state budget for the next two years
Publication of the draft law on the website of the Ministry of Finance
Agreement on the draft budget law with MDAs, and its submission for
consideration to the permanent Budget Commission under the Government
Consideration and adoption of the draft law on the state budget in Parliament
Adoption of the Government Resolution on measures of executing the new law
The entry into force of the new budget law
OCTOBER Consideration of the draft law on the state budget in the Government
Wages Deductions
for social
needs
Stipends
Pensions
Allowances Compensat
ion
payments
Communal
services
payments
4 | Citizens' Budget of the Republic of Tajikistan for 2020
MACROECONOMIC FORECASTS
In 2020, the gross domestic product (GDP) of the Republic of Tajikistan will amount to 87.379
million somoni, which is 11.7% more than in the previous year. It is expected that in 2021-2022
nominal GDP will grow, on average, by 11.6% per year and will amount to 108.793 million somoni
in 2022. Real GDP growth will comprise 7.9% in 2020-2021. and 8% in 2022.
According to the calculations of the Government of the Republic of Tajikistan, inflation in 2020
will reach 6.8% (i.e. prices will rise by 6.8% in the 12 months between December 2019 and
December 2020). Inflation in 2021 and 2022 will equal 6.8% and 6.6%. In addition, the somoni will
become weaker against the U.S. dollar, on average, by 6.7% in 2020 and will average 10.2 somoni
per 1 dollar. In 2020, public debt payments will amount to 1,551 million somoni (5.9% of the state
budget).
Nominal and real GDP of the Republic of Tajikistan, 2018-2022.
Growth of prices and value of somoni against U.S. dollar in the Republic of Tajikistan, 2018-2022.
4,8
5,0
5,2
5,4
5,6
5,8
6,0
6,2
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
2018 2019 2020 2021 2022
% o
f st
ate
bu
dg
et
mill
ion
so
mo
ni
Public debt servicing (in somoni) State expenditure budget (in somoni)
Public debt servicing (in % of state budget)
6,0
7,0
8,0
9,0
10,0
11,0
12,0
6,0
6,2
6,4
6,6
6,8
7,0
7,2
2018 2019 2020 2021 2022
som
on
i (p
er 1 U
.S. d
olla
r)
Infla
tio
n (
in %
to
pre
vio
us
ye
ar)
Inflation (in %) Exchange rate (somoni per 1 U.S. dollar)
6,8
7,0
7,2
7,4
7,6
7,8
8,0
8,2
0
20 000
40 000
60 000
80 000
100 000
120 000
2018 2019 2020 2021 2022
% o
f G
DP
mill
ion
so
mo
ni
Nominal GDP (in million somoni) Real GDP growth rate (in %)
5 | Citizens' Budget of the Republic of Tajikistan for 2020
REVENUES OF THE STATE BUDGET
Exemption from the following taxes: VA
T
Cu
sto
ms
du
tie
s
Pro
pe
rty t
axe
s
Tra
nsp
ort
use
rs''
ax
Tra
nsp
ort
ve
hic
les
tax
Re
ve
nu
e t
ax
Import of electricity and natural gas •
Import of equipment and special vehicles for the passenger
car park in Dushanbe of the SUE " For the production,
purchase, reservation and sale of essential goods in the city of
Dushanbe"
• •
Import of low-sulfur fuel oil for the needs of OJSC
"Teploelektrocentral" in Dushanbe • •
Construction of Ismoili Somoni Hotel on Rudaki Ave, Dushanbe • • •
Construction of 12 schools for a combined 6,050 seats and a
health care facility • •
•
Construction of avalanche tunnels in sections of the
Dushanbe-Khujand-Chanak highway • •
•
Import of 7,200 tons of coal to the Murghab district of GBAO • •
Construction of the National Theater of Tajikistan • •
Tajikistan Football Federation and local football clubs • •
Import of pedigree cattle, as well as livestock feed • •
Construction of the Yavan-Vahsh road • •
Import of passport forms by the Ministry of Foreign Affairs •
Tax revenues 17,912.0
Non-tax revenues 1,288.0
Grants (budget support) 300.0
Loans (public investment) 2,327.0
Grants (public investment) 2,196.5
Revenues of budget organizations 2,030.5
Revenues of the state budget, 2020.
6 234,4
557,8
13,3
260,7
398,9
946,9
781,0
465,8
1 196,7
300,0
Revenues of the republican budget, 2020.
Value added taxes (VAT) 6,234.4
Excise taxes 557.8
Sales tax 13.3
Tax on natural resources 260.7
Revenue tax 398.9
Income tax 946.9
Customs duties 781.0
Automobile owner tax 465.8
Other non-tax revenues 1,196.7
Grants (budget support) 300.0
Tax and customs benefits for enterprises and organizations of the Republic of Tajikistan in 2020.
17 912,0
1 288,0
300,0
2 327,0
2 196,5
2,030.5
6 | Citizens' Budget of the Republic of Tajikistan for 2020
REVENUES OF THE STATE BUDGET
Revenues of the state budget of the Republic of Tajikistan continue to grow and will amount to
26,054 million somoni in 2020. On average, revenues will grow by 9.2% per year during 2020-2022,
and the volume of grants and loans from international financial organizations will also rise. The
republican budget also includes the Reserve Fund of the President of the Republic of Tajikistan,
which will equal 384 million somoni in 2020.
The revenues of sub-national bodies include, among other things, subventions. Subventions are
allocated from the republican budget to sub-national government bodies in case of insufficient
collection of income from other sources in order to cover the need for salary expenditures over
the course of the financial year. In general, the recipients of subventions are those rayons and
oblasts that do not have sufficient funds to finance the needs of their geographical territory.
Special funds (i.e. income) of all budgetary organizations in 2020 will amount to 2,030.5 million
somoni, which is 17.2% higher than in the previous year.
State revenues of the Republic of Tajikistan in 2018-2022.
Subventions (i.e. transfers) to sub-national government bodies in 2019-2020.
0,050,0
100,0150,0200,0250,0300,0350,0400,0450,0500,0550,0
GBAO Khatlon
oblast
Varzon
(rayon)
Rasht
(rayon)
Lahsh
(rayon)
Nurobod
(rayon)
Sangvor
(rayon)
Tojikobod
(rayon)
Fayzobod
(rayon)
Shahrinav
(rayon)
mill
ion
so
mo
ni
2019 2020
1 510 1 702 2 196 1 680 1 3271 765 2 540 2 327 3 523 3 755
14 52615 258 16 078 16 078
18 500
0
2 500
5 000
7 500
10 000
12 500
15 000
17 500
20 000
22 500
25 000
2018 2019 2020 2021 2022
mill
ion
so
mo
ni
Grants Loans State revenues (total)
7 | Citizens' Budget of the Republic of Tajikistan for 2020
EXPENDITURES OF THE STATE BUDGET
The total expenditures of the state budget in 2020 will amount to 26,360.5 million somoni and will
expand by 9.3% compared with the previous year. The state budget of the Republic of Tajikistan
is social in nature and in 2020 about 44.5% of the total amount of expenditures equal to 11,730.2
million somoni will be used to finance social sectors.
In 2020, 20% of excess revenues of sub-national governments and 30% of excess revenues of the
republican budget (after covering the state budget deficit) will be directed to the Stabilization
Fund for Economic Development (SFED).
0,0 1 000,0 2 000,0 3 000,0 4 000,0 5 000,0 6 000,0
Other economic sectors
Industry and construction
Agriculture and fishery
Culture and sport
Housing and communal services
Public administration
Health care
Transport and communication
Other expenditures
Social insurance and protection
Energy
Education
million somoni
5,004.7 20.5%
3,927.6 16.1%
3,911.6 16.0%
3,128.9 12.8%
1,969.4 8.1%
1,841.3 7.5%
1,365.9 5.6%
1,230.7 5.0%
972.6 4.0%
785.5 3.2%
232.4 1.0%
70.0 0.3%
Expenditures of the state budget of the Republic of Tajikistan in 2020 (in million somoni and in %).
Change in the expenditure of the state budget of the Republic of Tajikistan in 2019-2020.
4 242 4 5241 624 1 865
18 299 19 972
0
5 000
10 000
15 000
20 000
25 000
30 000
2019 2020
mill
ion
so
mo
ni
Other expenditures of the state budget
Spending of budget organizations from special funds (own revenues)
Public investment program (PIP)
8 | Citizens' Budget of the Republic of Tajikistan for 2020
EXPENDITURES OF THE STATE BUDGET
The expenditures of the republican budget in 2020 will amount to 11,495.2 million somoni, which
is 8.9% more than the previous year. To pay the salaries of budgetary organizations and institutions
funded from the republican budget, 1,922.5 million somoni is provided, which equals 16.7% of the
aggregate expenditures of the republican budget.
Other expenditures include: (1) operations with government debt obligations (1,741.6 million
somoni); (2) expenditures of Dushanbe for the implementation of the functions of the capital (25
million somoni); (3) Contingency Fund of the Government of the Republic of Tajikistan (96 million
somoni); and (4) other expenditures not classified by economic sectors (2,121.7 million somoni).
Wage bill, 1,905.0,
17%
Social payments,
251.6, 2%
Purchase of goods
and services,
2,593.1, 23%
Servicing of public
and publicly
guaranteed debt,
1,741.6, 15%
Payment of
subsidies, 94.9, 1%
Spending on
transfers, 1,209.9,
10%
Social assistance to
the population,
189.6, 2%
Other transfers,
347.7, 3%
Operations with
assets, liabilities and
investments, 3,144.4,
27%
Expenditures of the republican budget of the Republic of Tajikistan in 2020 (in million somoni).
Expenditures of the republican budget of the Republic of Tajikistan in 2020 (by sectors).
3,984.2 2,188.3 931.3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Other expenditures Energy Public administration Education
Social insurance and protection Culture and sport Health care Transport and communication
Industry and construction Agriculture and fishery Housing and communal services Other economic sectors
9 | Citizens' Budget of the Republic of Tajikistan for 2020
PUBLIC DEBT
In 2020, 2,916.5 million somoni is provided for servicing the state debt, and the share of budget
funds in it comprises 1,741.6 million somoni.
The share of domestic debt in total public debt increased from 10.1% in 2019 to 29% in 2020, i.e.
from 221.6 million somoni to 846.7 million somoni. In general, the total amount of the state debt
of the Republic of Tajikistan will increase in 2020 compared to the previous year by 32.9%, i.e.
debt will increase by almost 1/3 in 12 months.
The main external creditors of the Government of the Republic of Tajikistan are: (1) among
international organizations - the World Bank (WB), Asian Development Bank (ADB), Islamic
Development Bank (IDB), the Eurasian Economic Union (EAEU) Anti-Crisis Fund, and the
International Monetary Fund (IMF); (2) among states - the People's Republic of China (PRC,
Eximbank), Saudi Arabia (Saudi Fund), Kuwait (Kuwait Fund), France, and Germany (KfW Bank);
and (3) Eurobonds issued by the Government of the Republic of Tajikistan in the amount of $500
million.
Change in the public debt of the Government of the Republic of Tajikistan in 2019-2020.
Payments on domestic debt, 2019-2020. Payments on external debt, 2019-2020.
1 211,7
1,281.3
761,6
788.6
0,0 500,0 1 000,0 1 500,0 2 000,0 2 500,0
2019
2020
million somoni
Principal payments Interest payments
175,3
764,0
46,3
82,7
0 200 400 600 800 1000
2019
2020
million somoni
Principal payments Interest payments
221,6846,7
1 973,2
2 069,8
0,0
500,0
1 000,0
1 500,0
2 000,0
2 500,0
3 000,0
3 500,0
2019 2020
mill
ion
so
mo
ni
Domestic debt External debt
10 | Citizens' Budget of the Republic of Tajikistan for 2020
EXPENDITURES OF THE STATE BUDGET
Public administration sector in 2020 (state and republican budgets).
Executive bodies
and legislature,
220.9, 23%
Financial, tax
and budgetary
policy, 131.6,
14%
Foreign policy
activity, 254.0,
27%
Other state bodies,
335.1, 36%
413,5
213,3169,2
567,2
0,0
100,0
200,0
300,0
400,0
500,0
600,0
mill
ion
so
mo
ni
Фонд оплаты труда Капитальные расходы
Специальные средства Прочие расходы
Education and science sector in 2020 (state and republican budgets).
2 417,1
755,5896,7 935,4
0,0
500,0
1 000,0
1 500,0
2 000,0
2 500,0
3 000,0
mill
ion
so
mo
ni
Фонд оплаты труда Капитальные расходы
Специальные средства Прочие расходы
General
secondary
education,
194.9, 21%
Professional education,
418.1, 65%
Other activity in
the area of
education, 112.9,
14%
Health care sector in 2020 (state and republican budgets).
Hospitals
148.0, 54%
Polyclinics,
6.8, 2%
Protection of health
of the population,
45.7, 16%
Other activity in
the area of
health care,
81.7, 28%
1 090,1
77,7
261,7
411,8
0,0
200,0
400,0
600,0
800,0
1 000,0
1 200,0
mill
ion
so
mo
ni
Wage bill Capital expenditures
Special funds Other expenditures
2 417,1
755,5896,7 935,4
0,0
500,0
1 000,0
1 500,0
2 000,0
2 500,0
3 000,0
mill
ion
so
mo
ni
Wage bill Capital expenditures
Special funds Other expenditures
413,5
213,3212.2
556.9
0,0
100,0
200,0
300,0
400,0
500,0
600,0
mill
ion
so
mo
ni
Wage bill Capital expenditures
Special funds Other expenditures
11 | Citizens' Budget of the Republic of Tajikistan for 2020
EXPENDITURES OF THE STATE BUDGET
Social insurance and social protection of the population sector in 2020 (state and republican budgets).
Culture and sport sector in 2020 (state and republican budgets).
Housing and communal services, and environmental protection in 2020 (state and republican budgets).
66,0 21,4 155,6
3 668,6
0,0
500,0
1 000,0
1 500,0
2 000,0
2 500,0
3 000,0
3 500,0
4 000,0
mill
ion
so
mo
ni
Фонд оплаты труда Капитальные расходы
Специальные средства Прочие расходы (вкл. пенсии)
Social
insurance of
the
population,
372.9, 67%
Social protection of
the population, 60.2,
11%
Other activity,
124.9, 22%
Activities on
physical education
and sport, 6.3, 2%Cultural-
educational
institutions, 92.9,
25%
Mass media,
144.1, 40%
Other
activity,
153.0, 33%
25,4
676,4
60,1
468,8
0
100
200
300
400
500
600
700
800
mill
ion
so
mo
ni
Wage bill Capital expenditures
Special funds Other expenditures
166,7
379,3
31,9
394,7
0
50
100
150
200
250
300
350
400
450
mill
ion
so
mo
ni
Wage bill Capital expenditures
Special funds Other expenditures
66,0 21,4155,6
3 668,6
0,0
500,0
1 000,0
1 500,0
2 000,0
2 500,0
3 000,0
3 500,0
4 000,0
mill
ion
so
mo
ni
Wage bill Capital expenditures
Special funds Other expenditures (incl. pensions)
Other
activity;
17,1; 20%
Forestry;
17,8; 20%
Sanitary
activity;
12,1; 14%
Housing
and
communal
services
developm
ent; 39,9;
46%
12 | Citizens' Budget of the Republic of Tajikistan for 2020
EXPENDITURES OF THE STATE BUDGET
Energy sector in 2020 (state and republican budgets).
Agriculture sector in 2020 (state and republican budgets).
Industry and construction sector in 2020 (state and republican budgets).
Cattle
breeding, … Locust
control
activities,
4.0, 12%
Development of leasing
relations and service
centers, 25.0, 73%
Anti-epizootic
measures, 2.9, 8%
32,1
105,9
3,0
91,4
0
20
40
60
80
100
120
mill
ion
so
mo
ni
Wage bill Capital expenditures
Special funds Other expenditures
55,7
566,8
25,2
137,8
0,0
100,0
200,0
300,0
400,0
500,0
600,0
mill
ion
so
mo
ni
Wage bill Capital expenditures
Special funds Other expenditures
7,3
3911,6
4,8 3,90
500
1000
1500
2000
2500
3000
3500
4000
4500
mill
ion
so
mo
ni
Wage bill Capital expenditures
Special funds Other expenditures
Other
activity;
23,0; 10%
Construct
ion; 99,1;
43%
Extractive
industry;
105,0;
45%
Productio
n; 3,7; 2%
Heating
Electricity
Other
activity
13 | Citizens' Budget of the Republic of Tajikistan for 2020
EXPENDITURES OF THE STATE BUDGET
PUBLIC INVESTMENT PROGRAM
The total volume of investments in 2020 is 4,523.5 million somoni, which is 17.2% of the volume of
state budget expenditures. Of this amount, 48.6% are grants (i.e., provided to the Government
of the Republic of Tajikistan free of charge), and 51.4% are loans.
Name of investment project 2019 2020
Construction of a regional electrical power line CASA-1000 97.0 494.8
Construction of a 240 kV electrical power distribution line 257.0 292.7
Construction of the Dushanbe-Bokhtar highway (corridors 2, 5 and 6) 94.9 238.0
Rehabilitation of the Nurek hydropower station infrastructure (phase 1) 0.0 229.6
Construction of several sections of the Kulob-Kalaykhumb highway 265.8 213.8
Transport and communication sector in 2020 (state and republican budgets).
Loans and grants in the PIP of the Republic of Tajikistan in 2020 (million somoni).
1,736.4 38.4%
1,149.9 25.4%
548.9 12.1%
505.4 11.2%
375.5 8.3%
78.7 1.7%
60.9 1.3%
33.0 0.7%
28.6 0.6%
6.4 0.1%
The largest investment projects in the Republic of Tajikistan in 2020 (in million U.S. dollars).
0,0 250,0 500,0 750,0 1 000,0 1 250,0 1 500,0 1 750,0 2 000,0
Social insurance and protection
Health care
Other sectors
Culture and sport
Public administration
Education
Housing and communal services
Agriculture and fishery
Transport and communication
Energy
Grant Loan
32,5
1 427,9
44,4
464,6
0,0
200,0
400,0
600,0
800,0
1 000,0
1 200,0
1 400,0
1 600,0
mill
ion
so
mo
ni
Wage bill Capital expenditures
Special funds Other expenditures
Transport;
171,0; 88%
Communi
cations;
0,8; 0% Other
activity;
23,4; 12%
14 | Citizens' Budget of the Republic of Tajikistan for 2020
STATE BUDGET DEFICIT
The Government of the Republic of Tajikistan adheres to the principle of a balanced state
budget. This means that the amount of budget expenditures envisaged must correspond to the
amount of budget revenues. In case of expenditures exceeding revenues, there is a deficit of
the state budget.
The maximum deficit of the state budget of the Republic of Tajikistan in 2020 is set at 0.4% of gross
domestic product (GDP) or 349.5 million somoni.
Domestic sources of financing (covering) the state budget deficit.
Loans received by
the Government of
the Republic of
Tajikistan from credit
organizations in
national currency
Government bills of
the Government of
the Republic of
Tajikistan in the form
of securities in
national currency
Deposits of budget
funds in the National
Bank of Tajikistan and
other banks or credit
organizations in the
Republic of Tajikistan
Budget loans received
from the upper levels
of the state budget
system of the Republic
of Tajikistan
External sources of financing (covering) the state budget deficit.
Government securities issued by the Government
of the Republic of Tajikistan in the form of
securities in foreign currency
Loans from other states, banks, international
financial organizations and non-residents
received in foreign currency
Sources of financing (covering) the state budget deficit of the Republic of Tajikistan in 2020.
25,0
100,0
34,0
150,0
30,6
9,9
0,0
25,0
50,0
75,0
100,0
125,0
150,0
175,0
200,0
225,0
250,0
275,0
300,0
325,0
350,0
mill
ion
so
mo
ni
Exceeding of sub-national governments'
revenue plan (i.e. revenue targets)
Savings from tenders of the state procurement
of goods, works and services
Credit and grant funds of international financial
organizations
Available funds of the republican budget as of
January 1, 2020
Sale of Treasury bills
Revenues from privatization, rental of republican
property and dividends of state shares