Identifier
Created
Classification
Origin
09ASHGABAT1507
2009-11-25 10:20:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN GOVERNMENT ADOPTS ITS 2010 BUDGET
how-toVZCZCXRO8251 PP RUEHIK DE RUEHAH #1507 3291020 ZNR UUUUU ZZH P 251020Z NOV 09 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC 3800 INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE RUCNCIS/CIS COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUEHAK/AMEMBASSY ANKARA 5924 RUEHBJ/AMEMBASSY BEIJING 3627 RUEHKO/AMEMBASSY TOKYO 3486 RUEHIT/AMCONSUL ISTANBUL 4166 RUCNDT/USMISSION USUN NEW YORK 1267 RHMCSUU/CDR USCENTCOM MACDILL AFB FL RUEHVEN/USMISSION USOSCE 4119 RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHDC RHEHNSC/NSC WASHDC RUEKJCS/SECDEF WASHDC RUEKJCS/JOINT STAFF WASHDC
UNCLAS ASHGABAT 001507
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE
E.O. 12958: N/A
TAGS: ECON EFIN EPET PGOV TX
SUBJECT: TURKMENISTAN GOVERNMENT ADOPTS ITS 2010 BUDGET
UNCLAS ASHGABAT 001507
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE
E.O. 12958: N/A
TAGS: ECON EFIN EPET PGOV TX
SUBJECT: TURKMENISTAN GOVERNMENT ADOPTS ITS 2010 BUDGET
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) On November 21, President Berdimuhamedov signed the
law on the state budget of Turkmenistan for 2010. According
to the law, budget revenues are set as 48.28 billion manats
(USD 16.94 billion) and budget expenditures are set as 49.78
billion manats (USD 17.47 billion). The government is going
to cover the 1.5 billion manat (USD 0.52 billion) shortfall by
tapping into funds accumulated in the country's stabilization
fund in 2009, which was a budget surplus year for
Turkmenistan. The projected budget deficit will be the first
in over a decade.
3. (SBU) Local newspapers published lengthy articles praising
the state budget, but providing very little detailed
information about the budget expenditures. The press reports
specified that the government will spend 74.1% of budget funds
to finance social development projects and praised the
Government's decision to increase spending on healthcare by
11.7%, education by 10.5%, culture by 36.5%, and construction
by 54.6% compared to the 2009 spending. (Note: Given that
there is no information available regarding 2009 spending, it
is not possible to estimate the actual line item amounts to be
spent in 2010. End Note) Wages will also be increased by 11%
in 2010. Commenting on the 2010 budget, President
Berdimuhamedov pointed out that it will not depend as heavily
on the revenues from energy exports as it did in the previous
years. Instead, as a result of the government's policy of
diversification of the economy, agricultural processing,
transport, communications, construction and textiles will make
a greater contribution.
4. (SBU) COMMENT: The adoption of a deficit budget is a
public acknowledgement of the impact of the cut-off of gas
sales to Russia. If the projected revenue figures are
accurate, it also indicates that the Turkmen government still
has sufficient currency reserves to easily cover the deficit.
The significant percentage increases in social sector
spending, although possibly from very low levels, suggests
that the government uses its spending in part to maintain a
level of public support. Berdimuhamedov's comments regarding
the reduced dependence of the 2010 budget on energy exports
might indicate that the government is not optimistic about a
full resumption of its gas trade with Russia. At the same
time, it is difficult to see how other sectors of the Turkmen
economy could make up for lucrative gas sales. END COMMENT.
CURRAN
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE
E.O. 12958: N/A
TAGS: ECON EFIN EPET PGOV TX
SUBJECT: TURKMENISTAN GOVERNMENT ADOPTS ITS 2010 BUDGET
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) On November 21, President Berdimuhamedov signed the
law on the state budget of Turkmenistan for 2010. According
to the law, budget revenues are set as 48.28 billion manats
(USD 16.94 billion) and budget expenditures are set as 49.78
billion manats (USD 17.47 billion). The government is going
to cover the 1.5 billion manat (USD 0.52 billion) shortfall by
tapping into funds accumulated in the country's stabilization
fund in 2009, which was a budget surplus year for
Turkmenistan. The projected budget deficit will be the first
in over a decade.
3. (SBU) Local newspapers published lengthy articles praising
the state budget, but providing very little detailed
information about the budget expenditures. The press reports
specified that the government will spend 74.1% of budget funds
to finance social development projects and praised the
Government's decision to increase spending on healthcare by
11.7%, education by 10.5%, culture by 36.5%, and construction
by 54.6% compared to the 2009 spending. (Note: Given that
there is no information available regarding 2009 spending, it
is not possible to estimate the actual line item amounts to be
spent in 2010. End Note) Wages will also be increased by 11%
in 2010. Commenting on the 2010 budget, President
Berdimuhamedov pointed out that it will not depend as heavily
on the revenues from energy exports as it did in the previous
years. Instead, as a result of the government's policy of
diversification of the economy, agricultural processing,
transport, communications, construction and textiles will make
a greater contribution.
4. (SBU) COMMENT: The adoption of a deficit budget is a
public acknowledgement of the impact of the cut-off of gas
sales to Russia. If the projected revenue figures are
accurate, it also indicates that the Turkmen government still
has sufficient currency reserves to easily cover the deficit.
The significant percentage increases in social sector
spending, although possibly from very low levels, suggests
that the government uses its spending in part to maintain a
level of public support. Berdimuhamedov's comments regarding
the reduced dependence of the 2010 budget on energy exports
might indicate that the government is not optimistic about a
full resumption of its gas trade with Russia. At the same
time, it is difficult to see how other sectors of the Turkmen
economy could make up for lucrative gas sales. END COMMENT.
CURRAN