OREANDA-NEWS. November 16, 2009. President of Turkmenistan Gurbanguly Berdimuhamedov chaired a meeting of the Cabinet of Ministers to review the draft State Budget for 2010 and other documents.

Opening the meeting the Turkmen leader focused on the importance of the tasks put on the agenda that had a direct impact on the further progress of the country and successful implementation of the social and economic development programmes and long-term plans in Turkmenistan. Noting that the participants of the meeting had the opportunity to review the draft 2010 State budget that had been discussed at the ministries and departments, the President gave the floor to Vice Premier T. Japarov who reported on the major aspects of this important financial document.

The Vice Premier noted that the balanced policy pursued by the Turkmen leader had conditioned the steady growth of the national economy that allowed forecasting the higher growth rates in 2010. In this regard, T. Japarov said that next year the GDP was expected to increase further that would be ensured through intense development of all the sectors. In the comparative prices the real economic growth was planned at the level of 106.3 percent.

In 2010, the volume of investments in the industrial and social and cultural spheres would be increased by 22.4 percent. It was expected that the earnings received from the foreign-owned enterprises would make up 29.3 percent of the planned amount that was conditioned by the favourable investment climate in the country.

Thus, the large volume of capital investments, which were planned for 2010, facilitated implementation of the national projects and programmes including the National Programme of the President of Turkmenistan on the improvement of the social and living conditions in villages, towns in etraps and entrap centres for the period till 2020.

In accordance with the draft State budget 74.1 percent of budgetary funds (excluding investments) would be invested to develop the social sphere. Of them, 39.2 percent would be allocated for education, 12.7 percent for health care, 4.3 percent culture, 33.4 percent for social welfare and 10.4 percent for housing and communal services.

Commenting on the report and focusing on the need to take the consistent measures to improve the social and living conditions of the population, the Turkmen leader put emphasis on the fact that in 2010 wages, pensions, benefits and scholarships would be raised further.

Speaker of the Mejlis of Turkmenistan A. Nurberdyeva reported on the activities of the national Parliament aimed at improving the national legislation. It was noted that the adoption of President of Turkmenistan of the Social Welfare Code, the Labour Code, the amendments and additions to the Tax Code and dozens of the existing laws as a result of the President’s progressive reforms had allowed improving the legal mechanisms and regulatory framework of the economic and social policy pursued by the Turkmen leader. A. Nurberdieva reported on the work carried on by the deputies of the Mejlis to draft the laws that would promote the large-scale reform programmes initiated by the President of Turkmenistan. The Speaker of the Mejlis focused on the social aspect of the main financial document that was aimed at further improving the quality of life of the Turkmen people.

Putting emphasis on the importance of the parliamentarians’ activity aimed at improving the legal framework and laying the firm foundation for the ongoing grandiose reforms, the President reiterated that the ultimate goal of these reforms was to guarantee a prosperous life and fruitful labour of the Turkmen people.

Then the floor was given to the Vice Premiers, who reported on the preparations of the State Budget of Turkmenistan for 2010 by the sectors under their supervision.

Vice Premier, Minister of Foreign Affairs of Turkmenistan R. Meredov reported that the major task set to the foreign ministry was to implement successfully the President’s international initiatives and fulfill the important tasks set forth in the programme on the Major Trends in Turkmenistan’s Foreign Policy Strategy for the period of 2008-2012. Endeavouring to expand international contacts in compliance with the Turkmen leader’s foreign policy the Ministry was planning to promote the activities of the Turkmen diplomatic delegations through visiting different countries of the world in 2010.

Reaffirming Turkmenistan’s commitment to the open doors policy based on the principles of peace, friendship, good neighbourliness and mutually advantageous cooperation, the Turkmen leader focused on the diplomats’ role in implementing the foreign policy strategy. The President said that the international forums, which were conducted in Turkmenistan in recent years on a regular basis, were to promote strengthening and developing fruitful partnership, enhancing the prestige of the country on a world arena.

Vice Premier H. Muhammedov reported that economic growth planned in the sectors under his supervision would be achieved through putting new production facilities into operation, reconstructing existing enterprises, modernizing and renewing equipment. The Vice Prime Minister assured the President that the trade and textile ministries and departments would spare no effort to achieve the goals through steadily increasing the volume of output and turnover and broadening a range of services rendered to the population.

Touching upon the issues of development of textile industry, the President focused on the need to promote professional development of textile workers and further modernize production infrastructure. In this regard, the President instructed to ensure the rise in production of high-quality textile products to enhance Turkmenistan’s position on world textile market.

Vice Premier B. Hojamuhammedov reported on the plans to accelerate the pace of economic development in oil and gas, chemical and fishing industries and Avaza national tourism zone. It was noted that in 2010 the measures to increase production and processing of tank crude oil, natural gas, petrol, diesel fuel and other products, iodine, mineral fertilizers, catch and fish processing.

Commenting on the report, the President focused on the need to increase the export potential of oil and gas sector through diversification. Gurbanguly Berdimuhamedov said that the particular steps had been taken to achieve these goals and emphasized that the Government would continue fostering the development of energy industry.

Reporting on the draft State budget Vice Premier M. Yazmuhammedova expressed sincere gratitude to the Turkmen leader for allocating the substantial investments in further development of the cultural sphere. The great importance attached by the President of Turkmenistan to the revival and replenishment of the spiritual values of the Turkmen people was vividly reflected in the planned increase of the expenditures for conducting the coming nationwide celebrations, international cultural events, putting a number of newly built facilities – the circus, concert halls, museums, etc into operation.

Emphasizing that the development of national the culture and arts, revival and popularization of the spiritual heritage of the Turkmen people were the priorities of the policy the President demanded that strict control be taken of all the relevant issues including the expansion of international humanitarian contacts.

Vice Premier N. Shagulyev reported on the plans to accelerate the pace of work in 2010 in the sectors under his supervision. In particular, it was noted that the stable growth of freight and passenger traffic activity by railway, road, aviation and maritime transport would be maintained in 2010. Reporting on the progress in developing the telecommunications and communications sector, the Vice Premier said that in 2010 Altyn Asyr subscribers, Internet and e-mail users throughout the country would be significantly increase in number.

Demanding that the pace of work aimed at modernizing and developing the transport and telecommunications sector as an essential condition for the further progress of the country, President Gurbanguly Berdimuhamedov focused on the need to ensure a wide access to modern communications systems.

Vice Premier D. Orazov reported on the draft State budget in construction, energy sector and industry. In particular, the Vice Premier noted that the economic indicators in the construction sector would be increased through accelerating the pace of construction work, improving the quality of newly constructed building in compliance with international standards, in the construction materials industry – through broadening the range and quality of products, extending the raw materials base. The planned parameters in the energy sector and industry would be achieved through increasing commercial output, in road construction – through accelerating the pace and improving the quality of construction of roads of all types and constructing infrastructure facilities. 

Putting emphasis on the important of the development of construction industry, which played a significant role in implementing the reforms and reform programs launched in Turkmenistan, the President demanded that strict control be taken of the quality of construction work in the country. The Turkmen leader reminded that one of the indispensable requirements set to the contractors and customers included the compliance with the period of construction.

Vice Premier H. Saparlyev presented the report on the draft State budget reflecting the plans for the further development of the spheres of education, science, health, sports and tourism. In compliance with the President’s policy of fundamental reforms aimed at bringing these important spheres up to a higher level the State budget provided for large-scale funding of construction of new educational and healthcare institutions, sports and tourism facilities, further development of applied and fundamental sciences in the country.

Highlighting the priority of the reforms in these spheres, the President said that the large-scale work that had been launched would be always fostered and supported by the Government.

Vice Premier M. Akmammedov reported on the draft State budget for the branches of the agro-industry sector. The Vice Premier reported that the significant increase in production of agricultural products, especially wheat, rice, melons had been planned for the next year. The Vice Premier also said that development and science based use of crop rotation in different climatic and soil conditions of the regions of Turkmenistan had allowed significantly increasing efficiency and profitability of crop management. In turn, this would contribute to achieving the expected results in raising small livestock and cattle, poultry and, consequently, increasing the volume of production of meat and dairy products, eggs and wool. It was also noted that a growth of gross agricultural output would have a positive impact on the provision of processing enterprises with raw materials as well as increasing food production.

Focusing on the need to take the targeted measures to raise crop capacity through actively adopting the achievements of modern agricultural science, the Turkmen leader also focused on the importance of technology modernization of the processing enterprises of the agro-industry sector and application of advanced technologies in practice. Touching upon the necessity to operate effectively the agricultural fleet equipment and machines the President demanded that agricultural equipment and machines be maintained and operate in a proper manner.

Summing up the reports the Turkmen leader said that the approval of the State Budget for 2010 was the most important event in the life of the country and every citizen. In this regard the Turkmen leader instructed the Vice Premiers to review and discuss each budget item by the sector in collaboration with the high-ranking officials of the ministries and departments.

Touching upon the fiscal policy of the state Gurbanguly Berdimuhamedov said that the high pace of economic development allowed ensuring the stable tax revenues and create the conditions conducive to the further economic progress, successful implementation of the ongoing programmes and improvement of the quality of life of the people.

The Turkmen leader noted that the expenditures had been planned so that substantial financing of the priority sectors of the national economy as it was set forth in the National Programme “The Strategy of Economic, Political and Cultural Development of Turkmenistan till 2020” would be ensured. The President said that these funds would be used to finance the reforms launched in agriculture, education, health care and the social sphere.

Gurbanguly Berdimuhamedov said that as in previous years the State budget would allow significantly improving the standards of living of the people. For this purpose the allocated funds would be increased by 25.7 percent as compared to 2009. Salaries, pensions, benefits and scholarships would be increased by 11 percent in average.

The 2010 State budget provided for an increase in the expenditures for health care by 11.7 percent, education – 10.5 percent, culture – 36.5 percent.

The priority trends in Turkmenistan’s policy included construction of social facilities including apartment houses. In this regard, the budgetary funds allocated for development of construction industry would be increased by 54.6 percent in 2010 as compared to this year. Substantial funding would be allocated for implementation of the national programmes.

Noting that according to the preliminary estimates, the GDP in 2010 would increase from 106.1 to 106.3 percent, the President focused on the specific features of the 2010 State Budget. The Turkmen leader emphasized that in 2010 the budget would not depend on the earnings received in the fuel and energy sector due to the measures taken to diversify the national economy.

Gurbanguly Berdimuhamedov said that the pace of construction work would be maintained in 2010 noting that construction of new facilities in Avaza national tourism zone, the North-South transnational corridor and important facilities of transport and communication and industrial infrastructure would be continued. The President said that the large-scale urban development programme would be further implemented in the capital, the look of which would be adorned with new magnificent buildings.

The Turkmen leader said that in 2010 the substantial investments would be made in the sectors of the economy from all the sources of financing. An increase in industrial output played an important role in achieving the economic progress, for which there was every requisite in Turkmenistan. In this context Gurbanguly Berdimuhamedov put emphasis on the need to maintain the growth rates achieved in industry in recent years that was ensured by the 2010 State budget.

Focusing on the need to ensure the proper use of the State Budget Gurbanguly Berdimuhamedov noted that the legislative and executive authorities must work hard to reduce the unreasonable costs.

The President of Turkmenistan noted that in whole the revenues and expenditures were balanced and implementation of the 2010 State Budget would promote developing the national economy and consistently improving the standards of living.

In conclusion Gurbanguly Berdimuhamedov instructed the cabinet ministers to thoroughly review the State budget and further then submit it to the Mejlis for consideration. The President instructed Vice Premier T. Japarov to draft the necessary documents.

In conclusion the President wished success in their work for the wellbeing and prosperity of the Motherland to those present.