The results of socio-economic development and performance of the national budget for Jan.-April of this year were considered at the Government session, chaired by Prime Minister Alikhan Smailov.

The Minister of National Economy Alibek Kuantyrov reported that during the reporting period Kazakhstan's economy grew by 5%. In this growth in the real sector amounted to 4.8%, and in services amounted to 4.9%. All main sectors showed positive dynamics, the best indicators demonstrating construction (+15.4%), trade (+11.2%), as well as information and communication (+9.7%).

The growth rate of investment in fixed assets amounted to 18%. Their inflow increased in areas such as transport and storage (39.3%), agriculture (26.5%), real estate (10%) and industry (18.1%), including mining (17.3%) and manufacturing (7%). In regional terms, the best performance is noted in Turkestan (+60.4%), Mangystau (+46%), Kyzylorda (+42.1%) and West Kazakhstan (+34.6%) regions.

According to preliminary results, in Jan.-March the foreign trade turnover grew by 13.4% to $32.7 billion. Exports reached $18.7 billion, with exports of processed goods up 8.1% to $5.9 billion. Overall, the positive trade balance for the reporting period amounted to $4.8 billion.

According to Deputy Prime Minister, Minister of Finance Yerulan Zhamaubayev, in Jan.-April the state budget received 6.1 trillion tenge of income, a plan fulfilled by 104.6%. In particular, the national budget was replenished by 4 trillion tenge, local budgets by 2 trillion 123 billion tenge. Plans for revenues were exceeded in all regions. Over the same period the state budget expenditures were executed by 98.6%, the national budget by 99%, local budgets by 98.6%.

Prime Minister stressed that based on the results of the four months the country's economy has shown a good growth rate.

"The volume of GDP has increased by 5% compared to the same period last year. There is a positive trend in the basic sectors of the economy. The manufacturing industry grew by 5.1%," Alikhan Smailov said.

A steady dynamic growth is also observed in machine building (36%) including locomotive and car production (64%) and motor industry (41%), light industry (35%) including production of textile (55%), clothes (8%) and leather goods (2%) as well as construction industry (over 15%).

Output of food and mineral products increased by 8% and electricity production by 6%. Pharmaceuticals and agriculture grew by 4%, oil refining by 3%, and mining by 2%. The services sector showed a 5% gain due to growth in trade, information, communications and transportation.

"Stable investment activity, including in non-resource sectors, is the key factor for the accelerated development of the economy. The growth of investment in fixed assets excluding mining has exceeded 18%," Prime Minister stressed.

In general, based on the results of the 4 months, the best indicators are observed in the Abay, Zhetysu, Ulytau, Akmola, West Kazakhstan, Kostanay, Kyzylorda, Pavlodar, North Kazakhstan regions and the city of Almaty. Less active dynamics is observed in Atyrau and Aktobe regions.

"In the current environment we need to ensure a high rate of economic growth. This is not an easy task. This requires coordinated work and effective coordination in the sectors of the economy. The contribution of each ministry and the region to achieve all the objectives is important," Alikhan Smailov noted. 

He pointed out that it was necessary for the heads of the ministries and regions to continue work on further diversification of the economy and creation of permanent jobs. The priority should be given to saturation of the domestic market with domestic goods and ensuring growth of non-resource production.

According to him, in order to increase business activity and qualitative development of the economy it is necessary to intensify the attraction of domestic and foreign investments. In this regard, we need to focus on the implementation of the pool of planned investment projects in manufacturing, agriculture, transport, logistics, IT-sector, tourism and other areas.

"We need to ensure the attraction of 18.5 trillion tg of investments in fixed capital," the Prime Minister said.

At the same time, it is important to continue to implement measures to develop entrepreneurship and competition, to reduce the level of shadow economy. The emphasis should be placed on providing jobs in small and medium-sized businesses, to actively support initiatives to create new and expand existing industries.

"It is necessary to create the maximum conditions for opening and doing business, an operative solution of all problematic issues of entrepreneurs. This task should be under the constant control of relevant ministries and akimats," Alikhan Smailov pointed out. 

One of the priorities of economic policy is also the gradual reduction of the share of the state in the economy to 14.4% of GDP. So, this year the implementation of the Comprehensive Privatization Plan, which is to be completed by 2025, should reach 90%.

The Prime Minister stressed that in parallel it is necessary to focus on the work on restraining the growth of prices.

"Our goal is to reduce inflation in the current year by 2 times. This is an important and responsible task, which requires us to take concerted and preventive action. In April, it slowed down to 16.8%. Akims of regions should continue to work qualitatively to stabilize the prices of socially important food products," Prime Minister said. 

He added that it is also required to take all necessary measures for execution of the updated Plan of measures to control and reduce inflation.

In conclusion, Prime Minister focused on the need to strengthen fiscal discipline and to improve the efficiency of budget expenditures. In particular, we should improve the quality of implemented measures within the framework of the "Business Road Map - 2025" and the program "Economy of simple things".

#Alikhan Smailov #The Prime Minister of the Republic of Kazakhstan #Budget #Budget Policy #Economy