State budget can lose up to US$523 million due to state of emergency

State budget can lose up to US$523 million due to state of emergency
Kazakh Ministry of Economy assessed the damage from the downtime of small and medium-sized businesses due to quarantine measures. Local and regional budgets of Kazakhstan will be underfunded by 230 billion tenge (nearly US$523 million), said spokesperson for Kazakh Ministry of National Economy Shyngys Akhmetov at a briefing in Central Communications Service. This is primarily due to the payment delay for businesses, including taxes. All these funds are compensated at the expense of the state. At the same time, the ministry is confident that it is too early to talk about the bankruptcy of enterprises. They are only temporarily suspended.
The current dynamics in the contraction of the sales market is everywhere. It is very important to get through this quarantine threat period and then make maximum efforts to reanimate our enterprises who provide the population with retail services by working in the commercial and industrial sectors,” said Shyngys Akhmetov.

The lockdown measures mainly affected businesspeople of two major cities. They brought the main income to the state of more than 30 percent of the total amount. The head of entrepreneurship development department emphasized that business in Kazakhstan is being supported, so that a number of enterprises could increase volumes soon.

First is a tax exemption, second is financing entrepreneurs. We have different directions, reducing the interest rate to six percent through subsidies. We finance the replenishment of working capital. The National Bank provided an additional financing program at eight percent. Third are utility bills and other payments,” added the spokesperson for Kazakh Ministry of National Economy.

Moreover, the concessional financing is now more affordable. Shyngys Akhmetov said that from now on, industrial restrictions on the Business Roadmap-2025 program are lifted. Earlier, only certain sectors of the economy were provided with support as part of the program. Now any entrepreneur can benefit from the assistance.