The Audit Chamber has identified areas for increasing Kyrgyzstan’s budget revenue

The Audit Chamber has summarised the findings of its audit of the implementation of the national budget for 2025. The analysis sets out objectives for strengthening budgetary discipline, improving financial reporting and fully implementing digital systems.

In particular, it was noted that only 71 per cent of institutions are currently connected to the automated centralised accounting information system, and the need to complete this process was therefore highlighted.

During the audit, an assessment was carried out of the potential for optimising budget revenue and making effective use of internal reserves. It was noted that there is potential to generate additional revenue for the state treasury through further improvements to tax legislation in the mining sector, the timely adjustment of tax rates and the full channelling into the budget of mandatory payments from sectoral enterprises.

The need to further improve public debt policy and the management of financial assets was highlighted. The analysis highlighted the need to optimise financial liabilities, reduce budgetary expenditure when issuing securities, and streamline the accounting process for state shareholdings. Furthermore, during the audit, a number of debts from previous periods were clarified and reinstated on the relevant balance sheet.

With a view to strengthening financial discipline, it was determined that the role of the Treasury system in the allocation of capital investments and budgetary loans should be enhanced, and that a further analysis of the justification for state support measures should be carried out. Tasks were set to refine cash flow planning within state bodies and to ensure the full and effective utilisation of allocated funds, including protected social expenditure items.

The Audit Office has issued the relevant directives and recommendations to the Cabinet, the Ministry of Finance and government bodies to rectify the identified shortcomings, ensure compliance with budgetary legislation and enhance the transparency of the use of public funds.