Ministry of Finance
of the Republic of Tajikistan
The budget process and
medium-term expenditure
framework
Sarvar Kurbanov
Dilshod Saidov
Formation of the State Budget
of the Republic of Tajikistan
Formation of the State Budget of the
Republic of Tajikistan is carried out
according to the instructions on the draft
state budget for 2013 and the forecast
budget figures for 2014-2015
1) The stages of state budget preparation for 2013-2015
The structure of the budget process in Tajikistan
Budget process 2013-2015
February - May
Phase 1 - Preparation of the MTEF 20132015
Phase 2 - Development of the draft law
"On the State Budget for 2013" and
forecast budgetary targets for 2014 and
2015.
June –
September 20
Prediction of the state budget
the process of preparation
Phase detailed budget preparation
Strategic phase
1 macroeconomic
framework
6 Approval of
ceilings and
identify new
policy
directions of
the Budget
Commission
and the
Government
The mediumterm
investment plan
5 Medium-term
program of public
spending
Macroeconomic and
macro-frame
objectives of fiscal
policy,
budget priorities,
baseline budgets
ceilings of expenditure
by sector
2 Prepare a
basic budget
3 Sector Strategy prepared /
updated line ministries
The base
budget
operating
costs
On this basis
Setting budget priorities
earnings
forecast
Base capex
4 Determination of ceilings of
expenditure by sector and
MMBF
8 Draft Law
on the
budget
prepared by
the Ministry
of Finance,
Internal
9 Presentation
of the draft
budget law &
the budget
figures for the
next two
years for
approval to
the
Government
7 budget
request and
forecast
budget figures
for the next
two years,
prepared
MMBF in the
proposed
ceilings
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Presentation
of the draft
budget law &
budget figure
for the next
two years in
Parliament,
hold budget
hearings
Budget planning cycle 2013-2015
Order of the Government of Tajikistan
Instructions for making predictions of
the state budget (PGB) for 2013-2015.
and the State Budget
for 2013
Definition of macroeconomic
indicators and government revenues in
the medium term
Setting budget priorities for
government spending and
ceilings by sector
Budget calendar 1st stage
Function
Date of Completion
Responsible state agency
Definition of macroeconomic indicators
March 1, 2013
Ministry of Economy of the Republic
of Tajikistan
Government revenue forecast for the medium term.
March 1, 2013
responsible ministries and agencies
The medium-term investment plan
March 1, 2013
Ministry of Economy of the Republic
of Tajikistan
Base capex
March 15, 2013
MOF RT
Basic budget current expenditure
April 1, 2013
Ministries and agencies coordinated by
the Ministry of Finance
Setting budget priorities of the Government of the
Republic of Tajikistan
April 1, 2013
responsible ministries and agencies
Determination of the cost ceilings by sector
May 1, 2013
MOF RT
Presentation of the draft PHB in 2012-2014. on an
ongoing Budget Commission
May 1, 2013
MOF RT
Determination of the cost ceiling for MMBF
June 1, 2013
MOF RT
Distribution expenses ceilings MMBF.
June 1, 2013
MOF RT
Budget instructions, step 2
July 1, 2013
MOF RT
Definition of macroeconomic indicators and
government revenues in the medium term
1. Ministry of Economic Development and Trade will make
the forecast of macroeconomic indicators of the Republic
of Tajikistan for the medium term, and submit to the
Ministry of Finance
2. National Bank of Tajikistan is the Ministry
of Finance forecast rate of the national
currency to U.S. dollars and inflation in the
medium term
3. The Ministry of Finance as part of preparing a macroeconomic
forecast revenues of the State budget, based on a proposal MMBF
setting budget priorities and prepares expenditure ceilings by sector
over the medium term.
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Budget planning tools

The base budget - budget planning tool that determines the cost of the
current policy, if there is no change in the current policy / strategy for the
sector. The budget takes into account the basis of inflation, one-time cost
and the law established requirements in response to changing demographics

To balance the budget process and to avoid the need to change the ceiling of
expenditure later in the process of budget planning (for example, due to
changes in macroeconomic projections), is expected to create a reserve
planning. Provision of planning - it's a small part of the total budget to fund
new initiatives, which must be deposited as a reserve for the planning

After determining the base budget, the Ministry of Finance, based on
macroeconomic and fiscal revenues and fiscal policies of the Government
(the deficit, taxes, national debt), calculates the amount of budget funds for
new initiatives
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Forecasting the cost ceiling by sector /
MMBF based on the following indicators:

forecast of macroeconomic indicators
inflation, exchange rate, etc.)

fiscal policy (the amount of the budget deficit, tax
policy)

budget priorities for the sectors in the medium
term
(GDP,
Essential criteria for the application of ministries
setting budget priorities

Applications budget priorities of ministries must meet the following three criteria
must :
MANDATORY CRITERIA
1. Applications budget
priorities should be of
strategic importance for the
RT
clarification
Applications must comply with key national priorities already identified in existing
strategic documents approved LMP, that is:
-
National Development Strategy (NDS);
-
Poverty Reduction Strategy (PRS);
- Annual message of the President of Tajikistan to Majlisi Oli;
- already approved other key sector strategies.
2. Applications budget
priorities should be
strategically important to
the industry
Application in respect of the budget priorities should be the key sectoral priorities not
funded (or partially funded) and already approved by the Government in the sector
strategies.
3. Applications budget
priorities must be
sustainable from a
financial point of view
Application in respect of the budget priorities must be sustainable from a financial
point of view and meet the planned resources of the state budget. As a consequence,
the application in respect of the budget priorities should not exceed 25% of the sector
budget for the current year (based on the functional classification of public
expenditure).
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Thank you for your attention !
Tashakkur !
Ce ce !