Savings to be used for economic growth — Olzhas Bektenov on cutting unproductive budget expenditures

Progress in implementing the instructions given by Prime Minister of Kazakhstan Olzhas Bektenov at a meeting on 9 February, reviewed at the Government session.

Deputy Prime Minister – Minister of National Economy Nurlan Baibazarov reported that in order to optimise budget expenditures conducted an additional audit to identify unproductive positions.

Based on this, it is proposed: to reduce the current administrative costs of government agencies (forums and research, business trips), to review projects and activities that are not of primary importance (construction of administrative buildings, current repairs), etc.

As a result, over 300 billion tenge is proposed for optimisation, which will be used to finance the instructions of the Head of State and priority sectors of the economy.

Nurlan Baibazarov also said that to date a draft presidential decree on comprehensive liberalisation of the economy has been developed. It provides for systemic measures to gradually reduce state interference in economic processes.

The draft decree provides for three areas: the development of market competition, effective privatisation and comprehensive reform of the quasi-state sector.

As Head of the Government noted, the proposed measures to optimise the expenditures of the republican budget are supported.

"We will direct the saved financial resources to the growth of the economy, without throwing them left and right. This work should be continued and the results should be taken into account in the formation of the draft national budget for 2025-2027," Olzhas Bektenov said.

Speaking about the liberalisation of the economy, he stressed that state regulation should be balanced, aimed at ensuring the effective functioning of the market and protecting the interests of all its participants.

"It is necessary to create a market where business entities will compete freely. At the same time, it is important to take into account national interests and security," Prime Minister said.

According to him, special attention should be paid to measures to develop market competition in the markets of fuel and energy complex, transport, communications and other commodity markets.

Olzhas Bektenov also added that there are methodological and technical issues regarding the single payment from the wage fund of employees.

"The Ministry of Finance together with the ministries of digitalisation, labour, health, national economy need to revise the criteria for application of the single payment, simplify the mechanism of calculation and payment, expand the scope of application," he said. 

First Deputy Prime Minister Roman Sklyar said that on 14 February, a meeting was held with the heads of 50 largest industrial and national companies. They have been set clear tasks for the creation in the coming years of new production facilities of high conversion, as well as the unconditional increase of local content in the procurement of goods, works and services.

According to him, the enterprises in general have an understanding of the set goals. For example, ERG is already building a hot-briquetted iron plant, and KAZMinerals is building a new copper smelter. "Kazphosphate and Kazazot are planning to increase fertiliser output by 2 times due to new production facilities. In addition, on industrial sites in Almaty and Kostanay will begin manufacturing of automotive components.

Roman Sklyar added that all enterprises until March 16 will be presented medium-term development plans for the creation of new production of the next stage, as well as new programmes to increase the purchase of products of domestic manufacturers.

As Prime Minister noted, this direction is very important in the conditions of the need for accelerated development of the national economy.

"We have significant growth reserves due to increased demand for Kazakhstani products. With the help of systematic and active work with enterprises we must maximise the load of orders of domestic producers," Olzhas Bektenov concluded.

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

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