Dushanbe, Nov 4 (IANS/RIA Novosti): The World Bank will give Tajikistan $38 million in two grants to plug budget gaps and help improve the tax system.

The $20 million is part of a series of grants issued to Tajikistan since 2009 to help cushion the impact of the global economic crisis, facilitate sustainable growth and reduce poverty, the bank said in a press release Saturday.

The lender said this grant will allow public spending on healthcare, education and social support to continue at current levels and help deliver better conditions for the development of the private sector.

The second grant, for $18 million, is to be spent on improving the tax system. The project's aim is to achieve transparency over taxation, cut the expenses involved, improve the quality of services offered, and crack down on the shadow economy.

The tax system reform project was developed under the strategic partnership for 2010-2013 between the World Bank and Tajikistan.

The World Bank currently has a portfolio of 14 projects worth a total $236 million in Tajikistan, with most being in the hydropower sector.