Publication: Improving Fiscal Risk Management in the Kyrgyz Republic, September 2022
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2023-04-10
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2023-04-10
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The Kyrgyz Republic is a small, open, and lower-middle-income country. Throughout the past two decades, the Kyrgyz authorities have substantially improved the country’s fiscal stance to maintain macroeconomic stability. Notwithstanding past progress, the fiscal system of the Kyrgyz Republic faces several structural and operational inefficiencies which diminish its capacity to support growth and absorb shocks. The objectives of this report are to (i) assess the government’s current practice of managing fiscal risks based on the Information on Fiscal Risks (IFR) produced by the Ministry of Finance (MoF) in 2021; and (ii) to provide a recommendation to counterparts from the MoF, Ministry of Economy and Commerce (MoEC), and State Property Management Fund (SPMF), and to other relevant stakeholders to improve fiscal risk management practices. The current report adds analytical knowledge to the fiscal system of the Kyrgyz Republic by reviewing the existing legal, institutional, and methodological frameworks used by the government in producing Information on fiscal risks. The report's main conclusion is that while the fiscal system of the Kyrgyz Republic is exposed to high risk, the country remains at an early stage of institutionalizing fiscal risk management
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“World Bank. 2023. Improving Fiscal Risk Management in the Kyrgyz Republic, September 2022. © World Bank. http://hdl.handle.net/10986/39656 License: CC BY-NC 3.0 IGO.”
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The report also emphasizes a transparent and targeted system in the provision of basic services to the poor, through reform policies and the inclusion of the private sector.Publication Kyrgyz Republic : Fiscal Sustainability Study(Washington, DC, 2000-06)The study reviews the macroeconomic developments in the Kyrgyz Republic following the collapse of the Soviet Union, when adjustments were required since output fell by fifty percent between 1991-95, resulting in adverse fiscal consequences, which triggered losses in tax revenues, along with the implicit end of energy subsidies. Part I examines the fiscal, and debt sustainability, proposing a three-fold strategy : efforts for an urgent renewal, are needed to consolidate macroeconomic stability, fundamentally, a significant fiscal adjustment is required; debt relief should be considered, given the large burden, and the need to preserve social expenditures; and, decisive structural reforms are necessary to underpin fiscal adjustment, and increase the efficiency of resource uses. Part II examine these structural issues, particularly the tax system, and the role of the state in infrastructure, and utilities, focusing on accelerating the transformation of public infrastructure, and utility companies, and, improve taxation. The report analyzes this transformation, emphasizing a transparent, and targeted system in the provision of basic services to the poor, through reform policies, and the inclusion of the private sector, critical to reflect cost-effectiveness, and adapt to the requirements of a market economy.Publication Kyrgyz Republic - Public Expenditure Review : Fiscal Policies for Growth and Poverty Reduction, Volume 1. Main Report(Washington, DC, 2004-03-22)The Kyrgyz Republic suffered severe shocks during the early years of independence, loosing its traditional markets in the Former Soviet Union republics, as well as substantial transfers and subsidies from the Soviet Union, that included a falling GDP during the first five years of transition. These circumstances prompted the Kyrgyz Republic to adopt a wide range of reforms to accelerate the transition to a market economy, emphasizing price and trade liberalization, and the shift of ownership of state assets to the private sector, including land, and most state-owned enterprises (SOEs). Since the mid-l990s, the economy has shown steady signs of recovery. Despite these favorable developments, the Kyrgyz Republic remains the second poorest of the FSU republics, and one of the poorest countries in the world. Absolute poverty affected about half of the population in spite of progress made in 2001, and, although poverty is highest in rural areas, there are large regional disparities, where transient poverty is high as a result of high consumption volatility. Access to public services such as water and sewerage, electricity, district heating, and telecommunication services, is very low. This Public Expenditure Review (PER) has sought to provide a strategic framework for fiscal adjustment and public expenditure reform, consistent with the government's objectives for accelerated growth and poverty reduction. The broad contours o f the strategy are: To stabilize the government's finances through stronger revenue, and expenditure management instruments and institutions, as well as through debt relief; to re-align sector policies with the most essential country priorities, with a general thrust toward improving targeted, and efficient use of resources in both social and public infrastructure sectors; to revamp the public administration to improve policy implementation and service delivery; and, to secure external financial support. Given the fragile external debt situation and the extent of poverty, priority has to be given to fiscal adjustment and the expenditure reform agenda. Government performance needs to be monitored, particularly at the grass roots levels, through systematic diagnoses of institutional problems, and through quantitative performance indicators, to monitor progress and competition in public service delivery.
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