Turkmenistan: Several Cities Grapple With Cash-Flow Problems

Turkmenistan may be energy rich, but the coffers of some municipal governments seem to be running dry. Municipal costs once shouldered by local governments are now being paid by citizens and small businesses in at least two Turkmen cities.

Cash-strapped authorities in Turkmenabat and Mary, seeking to plug budgetary holes, have introduced a surcharge of about $3.50 that each worker must pay on top of regular tax payements, the opposition website Chrono-tm.org reported on November 19.

Business owners are also being ordered to organize the cleaning and upkeep of areas adjacent to their properties. Despite proposing a draft budget of $16.9 billion for 2010, the Turkmen government appears to have significant cash flow problems that are connected to ineffective infrastructure and resource management. A gas dispute with Russia also appears to be slicing into state revenue.

Textile workers in both Turkmenabat and Mary reportedly staged protests in September over months of unpaid wages. Turkmenabat was also hit with power outages during the summer, according to local reports.