Today, at a meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev, the Minister of Finance Bakhyt Sultanov presented the main parameters of the Law "On the Republican Budget for 2018-2020".

As the Minister of Finance noted in his speech, the basic characteristics of the project are determined in accordance with the Concept of a new budget policy and the forecast of socio-economic development until 2022.

Thus, the structure of budget revenues has changed qualitatively in the context of conservative forecasts.

According to B. Sultanov, the volume of non-oil revenues in 2018 will amount to 5 271.4 billion tenge, which is 19.3% higher than the plan for the current year.

Modernization of the country's economy, stabilization of internal and external macroeconomic situation and improvement of tax administration were the main factors of growth.

The volume of oil revenues to the budget was reduced compared to the current year by 1,901.3 billion tenge due to:

• A phased reduction of the guaranteed transfer and a refusal to attract a targeted transfer from the National Fund;
• Decrease in the amount of revenues from ETP due to the adjustment of the oil price from $50 to $45 per barrel.

In addition, the Minister noted that the cost optimization has been carried out, while the draft budget ensures the implementation of all tasks assigned to the Government:

• The development of human capital through the strengthening of the social orientation of expenditures and the fulfillment of all previous commitments;
• Technological modernization and digitization of the economy, development of the agricultural sector, transport and logistics infrastructure;
• Ensuring the defense capability and security of the state.

B. Sultanov said that the expenditures of the republican budget in 2018 will amount to 9 217.9 billion, which is also higher than the plan of the current year for 134.6 billion tenge.

"In the structure of expenditures, the social sector accounts for the largest share or 44.5%, which increased by more than 400 billion tenge, compared to the current year," B. Sultanov emphasized.

Thus, the main component of growth is the increase of pensions and aids for the birth of children, including as a result of the revision of the structure of the subsistence level and the procedure for assigning pensions.

The development of the real sector of the economy in 2018 provides 1.4 trillion tenge. The decrease in expenses in comparison with the current year is due to two main factors:

• Change in the sources of funding for programs from a targeted transfer from the National Fund to non-oil revenues;
• Forecasts of the development of budgetary funds of the current and next year by the subjects of the quasi-public sector.

For continuation of the program "Nurly Zhol", the expenditures in the amount of 512.6 billion tenge, of which for 2018 - 243.3 billion tenge were provided.

It is proposed to send 208.8 billion tenge to the Housing Construction Program "Nurly Zher", of which 125.2 billion tenge - for 2018.

According to the program for the agro-industrial complex development for 2018, 195 billion tenge is provided for measures to increase the availability of financial services (subsidies), the development of water management and veterinary medicine, and the provision of phytosanitary security.

For the implementation of the second stage of the State program of Industrial and Innovative Development, expenditures in the total amount of 232.9 billion tenge, of which 76.1 billion for 2018 are provided.

In 2018, 292.6 billion tenge will be allocated for the development of transport infrastructure.

To ensure the defense capability and security of the state, protection of law and order and maintenance of internal stability, expenditures in 2018 will amount to 1 088.9 billion tenge.

As noted by B. Sultanov, the deficit of the republican budget has been reduced relative to GDP from 1.1% in 2018 to 1.0% in 2019-2020, which will allow keeping the volume of public debt at a moderate level.

The draft law was approved by the members of the Government. The bill will be sent to the Majilis of the Parliament for consideration in September this year.