At the government session chaired by Prime Minister Askar Mamin, the country’s socio-economic development for January-November 2020 was considered. Minister of Finance Yerulan Zhamaubayev made a report on the performance indicators of the state budget following the results of 11 months of the year.

 

Revenues

As the minister noted, during the period under review, the state budget received revenues in the amount of 8 trillion tenge, or the plan was executed by 104.7%. The republican budget received revenues in the amount of 5 trillion 224 billion tenge or the plan was fulfilled by 101.4%.

In general, the income plan was exceeded by 74 billion tenge. Taxes were not executed by 65 billion tenge, non-tax revenues were exceeded by 140 billion tenge.

The bulk of the tax default is VAT. The reasons for the failure to fulfill the plan for VAT, according to the minister, are:

• an increase in VAT refund by 50% or by 181.5 billion tenge compared to the same period last year;
• decrease in sales turnover according to the IS Electronic Invoices by 13.6%. At the same time, the main decrease occurs in the mining industry, where turnover fell by 41.6% or 8 trillion tenge compared to the same period of the past;
• decrease in trade turnover of Kazakhstan with third countries compared to 10 months of 2019 by 14.3%.

“At the same time, the plan for the severance tax was exceeded by 14 billion tenge. The main reason is the increase in the production of non-ferrous metals. Revenues of local budgets were executed by 111.3% and amounted to 2 trillion 811 billion tenge,” Zhamaubayev noted.

In general, the plan was exceeded by 285 billion tenge. Of these, taxes — by 269 billion tenge. In all regions, according to the minister, income plans have been exceeded.

 

Expenditures

State budget expenditures were executed by 97.8%, republican — by 98.9%, local budgets — by 97.2%.

The republican budget expenditures amounted to 12 trillion 503 billion tenge. Not executed — 137 billion tenge. Of these, savings — 15 billion tenge, not utilized — 122 billion tenge.

“The largest amounts of non-utilization were formed in the following central state bodies: the Ministry of Finance, the Ministry of Internal Affairs, the Central Election Commission, the Ministry of Health, the Ministry of Agriculture and the Ministry of Emergencies. The main reasons for failure to master: long-term holding of tender procedures, procedures for concluding contracts; lengthy coordination of payment documents; failure to submit acts of completion; payment for the actually rendered volume of services, work performed, litigation,” Zhamaubayev emphasized.

Until the end of the financial year, payments in the amount of more than 1 trillion tenge are to be made under the republican budget.

According to preliminary data, according to the minister, the execution of the republican budget expenditures for the year is expected to be within 99.8%.

At the same time, there is a risk of non-utilization for certain budget programs.

Speaking further about the expenditures of local budgets, the minister noted that they left 7.1 trillion tenge. Not executed — 208 billion tenge.

This year, the regions are provided with targeted transfers in the amount of 2.2 trillion tenge. According to preliminary data, on Dec. 1, the regions were allocated 2 trillion tenge. Of these, 96.7% were mastered. Not executed — 66 billion tenge, including savings — 12 billion tenge, not executed — 54 billion tenge.

The greatest amount of unexecuted funds were in the following regions: Nur-Sultan, Almaty, Aktobe region, West Kazakhstan and Atyrau.

“According to information from local executive bodies, by the end of the year, it is expected that the plan for targeted transfers in the amount of 26 billion tenge will not be fulfilled. The main reasons for the expected non-fulfillment are: savings on public procurement; decrease in the actual number of recipients against the planned; lagging behind the work schedule, not fulfilling the scope of work,” the minister of finance said.

In this regard, administrators of republican budget programs and local executive bodies need to take all measures for the full and effective use of budget funds.

 

State Assets

Over the past 11 months, cameral control covered about 1.4 million public procurement procedures in the amount of 10.1 trillion tenge.

Based on the results of the checks, violations in the amount of 806 billion tenge were prevented. To improve and increase the efficiency of the audit objects, 1,712 recommendations were given. Of these, 1,339 were executed.

 

Management of State Assets

Comprehensive Privatization Plan for 2016-2020 was fulfilled by 93%. In 2020, it is planned to implement 76 objects. Of these, 37 are for sale.

During the reporting period, 8 objects were sold for 100.9 billion tenge. 29 objects are on sale. Seven objects are aimed at reorganization and liquidation. 10 properties will be put up for sale by the end of the year.

For 20 facilities, the implementation dates have been postponed to 2021-2024. A proposal for exclusion from the Comprehensive Privatization Plan was approved for 2 objects.