The Rules for determining target indicators for the medium-term period have been approved.
According to elchi, the Cabinet of Ministers has made a decision regarding this matter.
The target indicators for the medium-term period determined by these Rules are indicative in nature and are used in forecasting state budget revenues for the medium-term period, determining the scale of fiscal concessions applied to the real sector, and justifying budget-tax policy; they do not replace the upper limits established for the main parameters of the budget rule.
Target indicators for the medium-term period are set every four years as a base target for the final year of the medium-term period. In order to ensure fiscal sustainability, maintain long-term stability of public finances, expand the non-oil and gas revenue base, and transparently assess the fiscal impact of tax and customs concessions applied in the non-oil and gas sector, the following target indicators for the medium-term period are established:
– the ratio of tax and customs concessions in the non-oil and gas sector to the non-oil and gas Gross Domestic Product (GDP) – an indicator that reflects the financial burden of tax and customs concessions and allows for measuring the scale of these concessions and their impact on budget revenues and economic activity;
– the difference between the forecast and actual indicators for state budget non-oil and gas revenues – an indicator that allows for evaluating the accuracy of state budget non-oil and gas revenue forecasts and reflects the efficiency of budget forecasting and the level of fiscal discipline.
Target indicators for the medium-term period are determined by the Ministry of Finance in coordination with the Ministry of Economy and the State Customs Committee. Target indicators for the medium-term period are prepared by the Ministry of Finance, taking into account the principle of fiscal sustainability as well as macroeconomic forecasts for the medium-term period. Target indicators for the medium-term period are taken into account in the preparation of the main directions of budget-tax policy and, in accordance with the Law “On the Budget System,” are submitted to the Milli Majlis together with the draft state budget for the next budget year.