President of Turkmenistan holds working meeting on development of the national economy

President Gurbanguly Berdimuhamedov held a working meeting with the participation of Deputy Chairman of the Cabinet of Ministers G. Mushshikov, who is in charge for the economic block, Minister of Finance and Economy M. Serdarov and Chairman of the Central Bank M. Annadurdyev. The priority tasks of development of the national economic complex of Turkmenistan, as well as reports on drafting the 2021 State Budget were discussed during the meeting.

Minister of Finance and Economy M. Serdarov reported on the indicators of local budgets provided for in the draft State Budget for the coming year.

As reported, in 2021, it is planned to take measures to support entrepreneurship, small and medium-sized businesses, increase the volume of domestic production, and ensure food abundance on domestic markets.

At the same time, privatization of objects and state-owned enterprises, creation of joint-stock companies, and increase in the share of private sector in the structure of the national economy of the country will be continued. Improvement of the tax system, search for additional sources of funding for the implementation of the outlined plans within the framework of state and national programmes were specified among the promising areas of work.

Reporting on the work carried out, the Minister said that comprehensive measures for digitalization were implemented. Steps are taken to develop the securities market, regulate settlements between institutions. Together with the Mejlis of the country, legal documents regulating activities in the spheres of the economy are improved.

Currently, works are carried out to ensure financial and economic stability, use the existing production capacities, reduce untargeted costs, increase the profitability of enterprises on an innovative basis.

Summing up the report, the President of Turkmenistan emphasized that measures should be taken to ensure the implementation of fundamental transformations in the financial and economic sphere, further sustainable, balanced growth of all industries.

Together with relevant structures, it is necessary to carry out coordinated work in order to develop entrepreneurship, saturate the domestic market with high-quality locally produced goods, increase the volume of export products, and enhance the role of private business.

Addressing a number of instructions to the Minister, the President underlined that the successful implementation of the outlined plans in the near future would ensure the growth of the national economy of Turkmenistan, expansion of trade relations with foreign partners.

Chairperson of the Central Bank M. Annadurdyev reported on the current situation in the spheres under his supervision. The report focused on the expected indicators of foreign trade turnover in the coming year.

To satisfy the industries with loans in the required amounts, it is planned to use banks' own funds and attracted funds, including investments received from foreign banks and major financial organizations. At the same time, credit institutions will strictly control the full and targeted use of the allocated funds.

Favorable conditions are created to provide security and guarantees for foreign investors and creditors. This, in turn, contributed to the growth of the attractiveness of the promising Turkmen market and the interest of the world's business circles in participation in large-scale projects.

Commenting on the report, the President of Turkmenistan focused on the priority tasks set to the banks. Specifying further improvement of the activities of credit institutions through the widespread introduction of innovative types of remote banking services among the key ones, the President instructed the relevant officials to strengthen cooperation with reputable financial international organizations in order to study best practices.

Particular attention was paid to the importance of a comprehensive approach to training highly qualified specialists who can bring the economy of Turkmenistan to a qualitatively new level of development.

The President of Turkmenistan also instructed the Chairman of the Central Bank to keep the issues of timely repayment of loans allocated for the development of leading sectors of the economy under strict control.

Deputy Prime Minister G. Mushshikov reported on the development of projects of the State Budget, the main directions of the socio-economic development of the country and the 2021 Investment Programme.

According to the draft State Budget for the coming year, the GDP at current prices will make 174.7 billion manat, and the growth rate in comparable prices will be 6.2%.

The Deputy Prime Minister provided the detailed report on the planned indicators of the articles of the State Budget. As reported, the significant part of the funds will be directed to the development of the social sphere, in particular, education, health care, culture, the system of state social security, housing and communal services, and general public services.

According to the Decree of the President of Turkmenistan, it is planned to increase wages, pensions, government benefits, scholarships for students by 10% in 2021.

In the coming year, it is envisaged to allocate capital investments for the construction of industrial and social buildings and facilities.

Commenting on the report, President Gurbanguly Berdimuhamedov focused on the key aspects of the upcoming work. One of the priority tasks is the adoption of effective management decisions from the point of view of economic feasibility and long-term interests of the country.

The President of Turkmenistan underlined the importance of ensuring a more balanced and rational use of the allocated funds, taking concrete steps to comprehensively support entrepreneurship, small and medium-sized businesses.

The Deputy Prime Minister was instructed to keep under control the implementation of state programmes on diversification and strengthening of the competitiveness of the national economy, increase of its export potential, creation of import-substituting industries, privatization of enterprises and state property.

Addressing the meeting participants, the President noted that due to the difficult situation in the world, macroeconomic policy should be more actively implemented with the aim to support the main industries and ensure sustainable economic growth in order to increase GDP by more than 6% in 2021. Among the important areas of work is the reform of market institutions.

The Turkmen leader emphasized that it was important to further modernize the banking sector, which is aimed at transforming the forms of credit institutions and implementing measures to improve the quality of their services.

Among the priority tasks, the President identified stimulating domestic demand, ensuring employment of the population and increase in income. It was underlined the necessity to expand the scope of comprehensive measures to provide financial support to entrepreneurs.

The President of Turkmenistan noted that the policy in the industrial sphere and in the context of competitiveness should be improved, including through stimulating domestic demand for national products.

Underlining the importance of accelerating the paces of investment activity, the President of Turkmenistan emphasized that in order to achieve success in this direction, it was necessary to support the participation of local investors in financing projects in the supply sector and actively use internal resources to create a system of value-added production.

President Gurbanguly Berdimuhamedov underlined the necessity to stimulate the foreign economic activity of enterprises exporting goods.

The President emphasized the importance of attracting domestic businessmen to the state procurement system, and increasing the profitability of conditions for entrepreneurial activity.

This work should be carried out through the formation of small industrial zones in the regions and the allocation of additional financial resources for industrialization and the development of private entrepreneurship.

The President of Turkmenistan also outlined the implementation of programmes for the social development of the country, improvement of the educational sphere, and improvement of the material and technical base of healthcare system as a priority task.

At the end of the meeting, President Gurbanguly Berdimuhamedov wished the participants great success in their work.