On September 26, 2019, the State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic submitted for public discussion a draft Law “On Amending the Law “On Subsoil” and a draft Government resolution “On a draft Law “On Amending the Law of the Kyrgyz Republic "On Subsoil."
The draft resolution was designed to:
- encourage subsoil users to start work as soon as possible, minimize the risk of reselling licenses, and also reduce the risk of obtaining rights to use subsoil by unscrupulous companies;
- decrease in the protest potential of the local population at the production facilities of the mining industry due to a lack of awareness of the benefits from project development;
- Implement paragraph 5 of the Decision of the Security Council of the Kyrgyz Republic dated January 30, 2019 No. 1, in which the State Committee for Industry, Energy and Subsoil Use is entrusted with the development amendments to the Law “On Subsoil” for consideration by the Government of the Kyrgyz Republic.
The draft Government resolution provides for the following norms to solve these problems:
- ban on issuing licenses for the right to use subsoil for the development purpose by companies with less than 5 years of experience in the field of subsoil use (except for companies with a state participation in the Kyrgyz Republic), with the exception of licensing groundwater, fresh, mineral and thermal mineral waters;
- cancellation of licenses for the right to use subsoil in cases of establishing facts of retention of a license for a period of more than 2 years without the intention to carry out licensed activities for which this license was issued;
- purchase by mining companies of at least 80% of goods and services in the territory of the Kyrgyz Republic, except when such goods or services are not produced in the Kyrgyz Republic;
- hiring at least 85% of the citizens of the Kyrgyz Republic of the total staff of the personnel involved in work in the Kyrgyz Republic.
The draft Government resolution provides for amendments and additions to Articles 20, 26 and 35 of the Law of the Kyrgyz Republic “On Subsoil”.
On September 23, the Parliament Committee on Budget and Finance approved the first reading of the draft law “On Amending the Legislative Acts of the Kyrgyz Republic in the Field of Collection of Non-Tax Incomes”.
The draft law is aimed at bringing certain regulatory legal acts into conformity with the Code of the Kyrgyz Republic on Non-Tax Revenues.
On September 23, members of the Budget and Finance Parliament Committee approved a draft grant agreement on the Program for the Promotion of Economic Diversification - Subprogram 1 between the Kyrgyz Republic and the Asian Development Bank.
Last year, the Kyrgyz Republic carried out activities on the program matrix, in connection with which ADB planned to allocate $30 million to support the Kyrgyz budget, and increased the amount first to $40 million, and then to $50 million. The decision was supported by the ADB Board of Directors.
On September 25, MPs adopted the following bills:
In the first reading:
- “On amendments to the Tax Code of the Kyrgyz Republic”. The initiator is the Government, Resolution No. 290 of 06/11/19.
- “On ratification of the Agreement on the harmonization of legislation of the Member States of the Eurasian Economic Union in the field of financial market, signed on November 6, 2018 in Moscow.” The initiator is the Government, Resolution No. 233 of 05/29/19.
- “On amendments to some legislative acts of the Kyrgyz Republic (in the Labor Code, laws “On the licensing system in the Kyrgyz Republic”, “On bankruptcy”). The initiator is the Government, Resolution No. 289 of 06/11/19.
- “On amendments to the Law of the Kyrgyz Republic “On Bankruptcy (Insolvency) ”. The initiator is the Government, Resolution No. 395 of 08/01/19.
On September 26, 2019, the Parliament deputies adopted the following bills:
In the first reading:
- “On Amending Certain Legislative Acts of the Kyrgyz Republic (in the Land Code, Law on Pastures). The initiator is the Government, Resolution No. 406 of 08/07/19.
- “On Amendments to the Code of the Kyrgyz Republic on Non-Tax Income”. The initiators are deputies Bekeshev, Aidarov, Arapbaev, Asylbaeva, Osmonova, and Surabaldieva.
In the second reading:
- “On Amendments to the Tax Code of the Kyrgyz Republic”. The initiator is the Government, Resolution No. 288 of 06/10/19.
On September 27, 2019, the Government of the Kyrgyz Republic approved the draft resolution “On the draft Law of the Kyrgyz Republic “On the national budget of the Kyrgyz Republic for 2020 and the forecast for 2021-2022”.
The Minister of Finance of the Kyrgyz Republic Baktygul Jeenbaeva announced that it is proposed to approve the national budget for 2020 with income in the amount of 163,710,434,200 soms and expenses in the amount of 173,663,937.2 thousand soms.
The maximum deficit of the national budget for 2020 will be approved in the amount of 9 953 503.0 thousand soms.
It is proposed to allocate funds of external and internal sources of financing in the amount of 9 953 503.0 thousand soms to cover the maximum size of the national budget deficit for 2020.
The draft law outlines the forecast of the main parameters of the national budget of the Kyrgyz Republic for 2021–2022.