The International Monetary Fund is worried about the Kyrgyz budget deficit of 1.3 billion som ($1 = 42.59 som), Tapio Saavalainen, head of an IMF mission in Bishkek said at a meeting with Kyrgyz Prime Minister Nikolai Tanayev.
"This deficit was formed as a result of the slow implementation of laws on charging 20% VAT on large agricultural producers and a tax on real estate. This means that the budget revenue base has been lower than forecast for the second year of a three-year program to fight poverty and help economic growth," Saavalainen said.
The liberal policy of the Kyrgyz government regarding budget expenditure and ineffective tax collection, according to the IMF representative, may cause problems with balancing the budget this year and drawing up the budget for 2003.
Interfax, August 20, 2003