Kazakhstan to amend its Budget Code

Kazakhstan to amend its Budget Code

The government has fully complied with its social obligations, Kazakh Finance Minister Yerulan Zhamaubayev stated at the plenary meeting of the Mazhilis, the Lower House of the Kazakh Parliament. The session discussed the reports of the Kazakh government and the Accounts Committee for Control over Execution of the Republican Budget on the national budget performance for 2019.     

“Last year, 53 strategic directions were implemented through financing 344 programs. 264 indicators of strategic plans were achieved. 13 state programs were funded. In particular, thousands of permanent jobs were created under the ‘Nurly Zhol’ state program. Volume of transit cargo amounted to 20 million tons. 115 kilometers of heat supply, water supply and sewage networks were built and reconstructed,” Zhamaubayev said.

Kazakh Finance Minister Yerulan Zhamaubayev stated that more than 19,000 apartments were given to socially vulnerable groups of the Kazakh population, families with many children and working youth as part of the ‘Nurly Zher’ state program. 22,000 young people received vocational technical training and 19,000 people received microloans and grants under the ‘Enbek’ program. Nearly 6,000 young people opened and expanded their own businesses.

“The country’s GDP growth reached 4.5 percent. Fixed investment grew by 8.5 percent. In the context of sectors, a significant increase in investment is observed in agriculture by 41.1 percent, in industry by 15 percent and in real estate operations by 14.7 percent. The Kazakh government expanded employment support measures, as well as measures to support families with many children and youth. Pursuant to the instruction of President of Kazakhstan Kassym-Jomart Tokayev, 716,000 of unsecured consumer loans of socially vulnerable segments of the population were repaid at second-tier banks and microfinance organizations,” Zhamaubayev said.

He said that nearly 56,000 small and medium-sized enterprises and more than 750,000 individuals took advantage of the tax amnesty for writing off penalties and fines, provided that the main debt was paid. In total, revenues to the national budget amounted to 10.6 trillion tenge (US$26.5 billion). Social expenses increased by 22 percent compared to 2018 and amounted to 5.2 trillion tenge (US$13 billion).

“Currently, measures were prepared to improve the state planning system. Adjustment of state programs’ indicators and strategic plans will be prohibited. The state programs will include types of reciprocal obligations of entrepreneurs receiving financial support,” Zhamaubayev noted.

This project suggests revising the mechanism of strategic and budget planning. A norm for assessing the expected economic effect of budget investments, as well as opening of a special account in the treasury for operators who provide government support measures to entrepreneurs, is being introduced. All of the proposed amendments are aimed at improving the budget process.


Photo: nb.kz