The results of socio-economic development of Kazakhstan and the implementation of the national budget for January-February were considered at the Government session.

Deputy Prime Minister – Minister of National Economy Nurlan Baybazarov said that during the reporting period the growth rate of Kazakhstan's economy was 4.2%, accelerating from 3.9% in January.

Positive dynamics in the real sector reached 5.1%, in services 3.5%. Among the sectors with the highest growth are construction, information and communication, transport and warehousing, as well as manufacturing.

The growth rate of investments in fixed assets amounted to 7.9%. Their inflow increased in construction 2.7 times, education by 56%, transport and warehousing by 47%, information and communication by 45%, manufacturing industry by 37%, agriculture by 12%.

According to preliminary results, in January 2024, the foreign trade turnover of the republic exceeded $10 billion. Exports amounted to about $6 billion, exports of processed goods were $1.6 billion, imports of goods $4 billion. In general, the positive trade balance of the Republic of Kazakhstan is equal to $1.7 billion.

As noted by Finance Minister Madi Takiev, the state budget received 3.2 trillion tenge of revenues from the plan fulfilled by 102.5%. The republican budget was replenished by 1.9 trillion tenge, local budgets by 1.3 trillion tenge. State budget expenditures for the reporting period were executed by 96.6%.

Prime Minister stressed that Kyzylorda region, the West Kazakhstan region, East Kazakhstan region, North Kazakhstan region, Turkestan region, Abay region and Astana region demonstrate growth in all major macro-indicators. The lowest indicators are achieved in Mangystau region, Atyrau region, Akmola region and Almaty.

Akims of Mangystau region Nurlan Nogayev, Atyrau region Serik Shapkenov, Akmola region Marat Akhmetzhanov and Almaty region Yerbolat Dosayev made reports on measures to attract investment, increase the pace of construction, development of agriculture and other areas in the regions. 

Head of the Government emphasised that the current rate of economic growth is positive, but it is necessary to increase the dynamics of growth. 

"The first heads of ministries and regions need to take all necessary measures for quality and timely implementation of the Plan. The entire Government requires well-coordinated work and effective coordination in all spheres of the economy," Olzhas Bektenov said. 

Prime Minister emphasised the importance of further reduction of inflationary pressure. According to the results of 2 months, inflation in annual terms has slowed down and amounted to 9.3%. At the same time, the Government and the National Bank have a task to keep it below 8%.

"Price increase was noted for rice, eggs, fruit, drinks, butter and pasta. This is quite a lot of positions, and the percentage of price increase is very sensitive. It means that the measures taken by the central and local executive bodies are insufficient," Prime Minister said.

In general, among the regions, the highest inflation growth is registered in Karaganda, East Kazakhstan and Mangystau regions. 

"If the regions do not take appropriate measures on the ground to reduce inflation, I ask you to immediately report to me to make appropriate decisions," Olzhas Bektenov demanded. 

According to him, in this work should be more actively used effective mechanisms: stabilisation funds, forward contracts, offteik-contracts, subsidies to reduce the cost of products, agreements with traders to ensure price stability.

In addition, it is necessary to expand the production of import-dependent products and increase the sown areas of priority crops intended for the production of socially important food products.

"Akims of the regions should increase the effectiveness of regional commissions to identify unproductive intermediaries. I instruct the central and local executive bodies to ensure quality implementation of the Set of measures to control and reduce inflation," Prime Minister said. 

Olzhas Bektenov also noted that to attract investment it is critical to ensure the availability of ready-made infrastructure. Currently, active work is already underway to reduce wear and tear in electricity, heat and water supply networks.

"All measures on repair and reconstruction of the infrastructure of housing and communal services should be qualitatively realised and completed in time. And the procurement should be guided by the maximum support of domestic manufacturers. At the same time, the National Infrastructure Plan being developed should include projects aimed at strengthening the life support system," Head of the Government pointed out. 

According to him, another priority is to gradually reduce the state's share in the economy and ensure equal opportunities for all. This should be accompanied by comprehensive privatisation and transfer of non-essential functions to a competitive environment. 

"We must reduce the share of the state in the economy to 14% of GDP by the end of 2025. It is necessary to ensure the implementation of 90% of the Comprehensive Privatisation Plan this year," Olzhas Bektenov voiced.

In conclusion, Prime Minister drew attention to the need for qualitative implementation of the Head of State's instructions on liberalisation of the economy. These measures should be aimed at the development of market competition, effective privatisation and reform of the quasi-state sector.

#Olzhas Bektenov #The Prime Minister of the Republic of Kazakhstan #Economy #Government session