Production in machine-building grows by 23% – Baibazarov

Manufacturing industry is developing at an accelerated pace in Kazakhstan: the volume of production for two months increased by 7.4%. This was announced by Deputy Prime Minister – Minister of National Economy Nurlan Baibazarov at the Government session, where the results of socio-economic development of the country and implementation of the national budget for January-February were considered. 

In this sector of the economy growth was recorded in 16 regions of the country. Thus, the largest increase is noted in Kyzylorda region, Aktobe region, East Kazakhstan region and West Kazakhstan region. At the same time, in terms of sectors of manufacturing industry production growth is provided in machine building by 23%, including in the automotive industry by 21%, production of electrical equipment by 45%.

It is noted that as a whole for the first two months of this year, Kazakhstan's economy grew by 4.2%, accelerating from 3.9% in January. Positive dynamics is observed in the real sector, where growth was 5.1%, in services 3.5%.

Nurlan Baybazarov also informed that in addition to manufacturing industry, the greatest growth is demonstrated by construction, information and communication, transport and warehousing.

Investment in fixed assets grew by 7.9%, accelerating from 0.6% in January this year.

"The volume of investments increased in construction by 2.7 times, education - by 56%, transport and warehousing - by 47%, information and communication - by 45%, manufacturing - by 37%, agriculture - by 12%. In the regional context, the best indicators are noted in Kyzylorda region, Turkestan region, Zhetisu region, as well as in Astana. At the same time, there is a decrease in investment in Akmola, Atyrau and Mangystau regions," Deputy Prime Minister said. 

According to preliminary results in January this year, foreign trade turnover exceeded $10 billion. Exports amounted to about $6 billion, with processed goods - $1.6 billion. Imports exceeded $4 billion. In general, a positive trade balance was formed at the level of $1.7 billion.

In the first two months of 2024, growth occurred in metallurgy production, up 11 %, chemical industry, up 25 %, metal products, up 24 %, construction materials, up 1.4 %, light industry, up 2.3 % and furniture, up 23 %.

Production in the mining industry increased by 1.9 %. Extraction of metal ores increased by 7.2%, gas - by 1.2%, oil - by 0.4% compared to January, other minerals - by 2.9%. Coal production decreased by 4.1 per cent.

In construction, a high growth rate is also preserved. The volume of work in this sector increased by 12.7%. Positive dynamics was recorded in 18 regions, with the greatest growth in construction and installation work in the Zhetisu region, Kyzylorda, Zhambyl and Pavlodar regions.

"Over 2 million square metres of housing was commissioned in the republic in January-February this year, which is 3.4% less than the corresponding period of last year. A significant decrease in housing commissioning is noted in Ulytau region, Mangystau region, Atyrau region, as well as in Almaty. The highest indicators are observed in Zhetisu region and Astana," Deputy Prime Minister said.

In agriculture, the volume of gross output increased by 1.3%. The highest growth here was observed in Almaty, Pavlodar, West-Kazakhstan and North-Kazakhstan regions.

As a whole, on all 7 economic indicators growth occurred in 7 regions - Kyzylorda region, West-Kazakhstan region, North-Kazakhstan region, Turkestan region, East-Kazakhstan region, Abay region and in the capital. 

It was emphasised that in order to ensure further economic growth, central and local executive bodies need to focus on the following measures: 

  • ensuring positive growth rates in the sectors of the economy at the planned levels, including through the expansion of existing production facilities and the launch of new ones;
  • attracting private investment in the sectors of the economy;
  • promptly responding to exporters' requests and providing comprehensive support for non-resource exports;
  • curbing the growth of consumer prices, providing comprehensive support in preparation for spring field work;
  • timely implementation of budget investment projects.

Minister of Finance Madi Takiyev reported on the performance of public finances on the results of two months at the Government session. 

He said that during the reporting period the state budget received 3 trillion 224 billion tenge, the plan was fulfilled by 102.5%. Receipts to the republican budget amounted to 1 trillion 902 billion tenge, the execution of the plan - 83%. 

"On revenues, the plan was not fulfilled by 396 billion tenge. These are VAT on imports, CIT and ETP on crude oil. One of the main reasons is the continuing downward trend in world prices for major export commodities. Thus, in January-February this year, prices for metals fell by an average of 9.1 per cent. There is also a decrease in the volume of crude oil exports subject to ETP by 1 million tonnes due to Tengizchevroil LLP postponing the volume of oil exports from December 2022 to January 2023. In addition, the non-fulfilment of the plan was affected by the return of VAT on debts of 2023 in the amount of 252 billion tenge out of 594 billion tenge," the head of the Ministry of Finance explained.

According to the results of two months of this year, the revenues of local budgets were executed by 156% and amounted to 1 trillion 322 billion tenge. The plan was overfulfilled by 475 billion tenge, including 433 billion tenge for taxes. It is emphasised that all regions exceeded their revenue plans.

The republican budget has made expenditures totalling 3.7 trillion tenge. Non-fulfilment amounted to 70 billion tenge, of which 25 billion tenge - savings, not utilised - 45 billion tenge. And the largest amounts of non-utilisation were formed in the ministries of tourism and sports, finance, culture and information, state protection service.

The main reasons for non-implementation were named: these are failed tenders for public procurement, long tendering procedures and untimely submission of certificates of completed work.

Expenditures of local budgets totalled 1 trillion 409 billion tenge, 74 billion tenge was not executed.

"This year, the regions are provided with targeted transfers totalling KZT1.8 trillion. As of 1 March, they were allocated 74 billion tenge. Of these, 91 per cent have been utilised. Not fulfilled - 7 billion tenge, including savings - 1 billion tenge, not utilised - 6 billion tenge. The greatest non-implementation was formed in Astana, Karaganda, Mangystau and Kyzylorda regions," Takiyev noted.

The head of the agency also informed that for 2 months of the current year desk control covered more than 142 thousand procedures of public procurement for a total amount of about 3.8 trillion tenge.

As a result of inspections established violations of 18,240 procedures, of which the objects of state audit executed 91% of notices to eliminate violations.

It is noted that as a result of 239 audit activities on 467 billion tenge of budgetary funds were established financial violations, the total amount of which was about 12 billion tenge. To date, eliminated violations for 568 million tenge.

The Comprehensive Privatisation Plan for 2021-2025 provides for the implementation of 657 objects. Since the beginning of the plan implementation 384 objects worth 396 billion tenge have been transferred to the competitive environment. 70 objects were directed for reorganisation and liquidation.

As of 1 March this year. 25 objects are at auction, 178 objects are in pre-sale preparation, 4 objects have been realised.

"The Ministry will continue to work on improving the efficiency of management and use of budget funds, assets of the state and quasi-state sector entities, including by expanding the implemented digital tools," the head of the Ministry of Finance summarised his report.

#Economy #Engineering #Finance #Government session

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