The state budget is an important tool for economic planning. On 30 November 2024, at the seventh session of the Mejlis of the seventh convocation, the Law of Turkmenistan “On the State Budget of Turkmenistan for 2025” was approved. During a round table held by the editorial board of the newspaper “Turkmenistan”, the chairmen of the Parliamentary Committees on Economic Issues, on Social Policy and the head of the State Budget Department of the Ministry of Finance and Economy of Turkmenistan spoke about the main provisions of the Law on the state budget and the distribution of budget funds. Here are some key points of their speeches:
- In 2025, the GDP growth rate will be 6.3% in comparable prices, provided that a stable geopolitical situation in the region is maintained. In accordance with the law, the State Budget for the current year has been approved in the amount of 123,798.1 million manats of revenue and expenditure, including the first-level budget of 36,500 million manats in revenue and expenditure.
- The centralized budget for revenue and expenditure is estimated at 111,987.6 million manats, including the first-level budget in revenue and expenditure of 24,689.6 million manats.
- A significant portion of the expenditure will be directed to improving the living conditions of the population.
- To ensure the balance of the budgets of the city of Arkadag, Dashoguz and Lebap provinces, funds in the amount of 3,496.5 million manats will be allocated from the centralized budget.
- The State Budget for 2025 provides a total of 15.307 million manats for local budgets of provinces, the cities of Ashgabat and Arkadag.
- Investments: In 2025, a total of 40.1 billion manats in investments will be channeled into the economy from various sources of funding.
- 65.6% of these investments will be directed towards the production and technical sector. 34.4% will be allocated to the socio-cultural sphere.
- 750 million manats in capital investments will be earmarked for the construction and reconstruction of buildings, structures, and engineering systems as part of the National Rural Program.
- More than 76% of budget funds (26.4 billion manats) will be directed to the social sphere. At the same time, 37.2% of these funds will be directed to finance education, 13.4% – healthcare, 2.9% – culture, 37.4% – the social security system, 9.2% – housing and communal services.
- Sources of budget financing: The first level of the State Budget of Turkmenistan will be funded primarily through taxes, fees, and other payments collected from individuals and legal entities throughout the fiscal year. Key revenue sources to the first-level State Budget and their projected shares:
Income Tax: 15.4%
Value Added Tax: 13.3%
Additional Taxes (Excise Taxes): 5.5%
Taxes for the Use of Subsoil: 4.0%
Property Tax: 3.3%
Taxes on the Population: 11.3%
Pension Contributions: 16.6%
Other Taxes and Fees: 30.6% - In 2025, revenues from the sale of products by various sectors and industries (excluding taxes) are projected to reach 87,298.1 million manats and contribute to the second level of the budget.
- The government aims to significantly expand the role of the non-state sector in the economy. By 2025, the target is to increase the share of the non-state sector’s contribution to the country’s GDP to 71.6%.
- The objectives of the economic policy of Turkmenistan in 2025: ensuring macroeconomic stability, including by increasing the role of the private sector and creating an effective system of economic regulation; diversification of the economy; reducing dependence on raw materials, increasing the number of industries processing raw materials; creating new industrial production and jobs; increasing the level of industrialization of the economy; introducing advanced production practices in industries; increasing the volume of output; modernization and digitalization of agriculture; increasing investment in human capital; continuing the implementation of urban development and housing construction programs; strengthening public-private partnerships, supporting small and medium businesses, increasing the resilience of the economy to external shocks.
- Priorities of the investment policy: optimization of budget expenditures, establishing control over the targeted use of funds, ensuring the transparency of budget operations. In 2025, the investment policy will continue to be aimed at stimulating the growth of private investment, increasing the efficiency of investments, primarily allocated for creating highly efficient, export-oriented high-tech industries; creating new jobs in the service sector; implementing priority programs in the social sphere; increasing the volume of investments aimed at the construction of engineering structures. ///nCa, 6 January 2025