7%; The budget deficit to GDP is no more than 5%. The indicators of the Kyrgyz
Republic in the system of international ratings have been improved, such as the
Doing Business (50 countries), the World Economic Forum Global
Competitiveness Index (70 countries), Transparency International (50 countries),
the Global Happiness Index (30- countries).
3.3. Enabling Environment
3.3.1. Macroeconomic stability and monetary policy
3.3.1.1. At the end of 2017, the Kyrgyz Republic achieved one of the highest
rates of economic growth among the member countries of the EAEC and amounted
to 4.6%. The government will preserve and strengthen economic growth trends in
order to ensure macroeconomic stability. The role of the National Bank of the
Kyrgyz Republic in promoting economic growth will significantly increase.
3.3.1.2. It is important to maintain a free financial market and expand
investment tools. Conducting a balanced monetary policy aimed at supporting the
export of domestic producers' products and ensuring a sufficiently stable level of
domestic demand of the population. The government will promote this policy
through fiscal instruments (tax incentives, export subsidies, lending, etc.).
3.3.1.3. The inflation policy should be guided by the basic principle measures to contain prices should not impede economic growth and simultaneous ly
take into account the interests of the population. The government will take measures
to keep inflation within the single-digit indicators - no more than 5-7% on average
per year.
3.3.1.4. In the medium term, the Government needs to achieve the following
targets:
- ensuring the dynamic development of the economy (at least 4%) and stable
growth in the incomes of the population and, consequently, reducing the level of
poverty to 20%;
- ensuring the balance of public finances and maintaining a controlled level
of the deficit of the state budget - within 3-5% of GDP.
3.3.1.5. Effective public financial management will help ensure that the
Government's financing needs are met through borrowing with the least possible
cost and reasonable risk level and sustainability of public debt. New external
borrowings should be used only for the most priority programs and projects that will
promote economic growth and reduce poverty.
3.3.1.6. The government will continue to implement program budgeting,
provide a dynamic transition from social to investment orientation of the budget for
the development of the real economy, improve efficiency and achieve strategic and
operational goals.
3.3.1.7. The reform of the public financial management system, which meets
the requirements of effectiveness and efficiency, will be continued. It is necessary
12
Select target paragraph3
Connect to a paragraph
Connect to an entity
Disable highlights
Add to table of contents