Kyrgyzstan’s Surplus to Support Energy, Banking, and Construction Sectors

The Eurasian Fund for Stabilization and Development (EFSD) has released a medium-term forecast predicting that Kyrgyzstan’s budget will remain in surplus through 2027, enabling financing of key state obligations.

According to the report, the surplus will support “below-the-line” measures, including recapitalization of state-owned enterprises in the energy, banking, and construction sectors, as planned in the 2025-2027 national budget, The Caspian Post reports via Kyrgyz media.

The average budget surplus during this period is projected at 1.6 per cent of GDP, thanks to high revenue levels averaging 23 per cent of GDP.

Analysts caution that a gradual decline in tax revenues to 15 per cent of GDP by 2028 could result in a slight budget deficit of 0.2 per cent of GDP, signaling a need for careful fiscal planning.