DUSHANBE, Tajikistan, April 12. The World Bank (WB) forecasts a widening fiscal deficit for Tajikistan in the medium term, Trend reports.
According to the WB, Tajikistan's fiscal deficit is expected to increase to 2.3 percent of GDP in 2024, up from 1.4 percent in 2023. The projection continues to rise to 2.5 percent in both 2025 and 2026.
This anticipated deficit expansion is attributed to various factors, including increased spending on vital infrastructure projects like the Rogun Hydro Power Project. Funding for such initiatives is expected to be sourced from a combination of enhanced revenues, support from development partners, and reductions in non-priority expenditures.
Moreover, the WB highlights the Tajik government's plans to allocate a larger share of its budget towards social sectors. This includes bolstering targeted social assistance programs to provide greater protection for vulnerable population groups.
Despite the projected fiscal deficit, the WB assures that it remains within moderate levels, aligning with debt sustainability considerations.
Notably, Tajikistan's fiscal deficit stood at 1.4 percent in 2022 and 1.2 percent in 2021, indicating a gradual increase over recent years.
