15.10.2024, 18:54 596

Non-tax payments totalled 921 billion tenge, six times higher than plan

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At the Government session, Finance Minister Madi Takiyev presented the results of execution of the state budget for 9 months of 2024. Excluding transfers received 14.9 trillion tenge, which is 93.2% of the planned. The republican budget received about 9 trillion tenge, primeminister.kz reports.

The Minister noted that the main factor in the failure to fulfil the revenue plan was the decline in tax revenues. Thus, their actual volume amounted to 8.1 trillion tenge, which is 2.6 trillion tenge less than planned.

Madi Takiyev pointed out 3 key factors that affected the fulfilment of targets:

Reduction in oil production: for 9 months oil production decreased by 5.3 million tonnes.
Slowdown of the global economy: the factor had a negative impact on foreign economic activity, as a result of which imports decreased by 8.3%, including with PRC by 6.5% and with EAEU countries by 4%. The decline in prices for the main export metals also affected budget revenues.
Increase in VAT refunds: in the first 9 months of this year, VAT refunds totalled KZT946bn, 3 times higher than last year.

Non-performance on taxes is compensated by an increase in non-tax payments, which with the plan for the reporting period of 148 billion tenge, actually amounted to 921 billion tenge. Over-fulfilment of the plan was ensured due to the receipt of dividends on state-owned blocks of shares, which are in state ownership, in the amount of 684 billion tenge. As for the proceeds from the sale of fixed capital, with the plan of 1.7 billion tenge, the budget received KZT 5.1 billion. It should be noted that the measures taken in the field of digitalisation of administration are one of the effective tools to improve efficiency. Thus, for 9 months of this year in the framework of tax and customs administration provided 794 billion tenge of additional revenues," the Minister said.

Receipts of transfers to the republican budget totalled 4.5 trillion tenge, including guaranteed from the National Fund in the amount of 2 trillion tenge.

Madi Takiyev paid special attention to the results of local budgets. Their own revenues were fulfilled by 115% and totalled 5.9 trillion tenge. The 127% growth was ensured by assigning to local budgets stable taxes that do not depend on external factors. As a result, this expands the financial autonomy of the regions and gives them the opportunity to address pressing issues.

State budget expenditures were executed by 95.6 per cent, republican budget - by 95.5 per cent, local budgets - by 97.4 per cent. The republican budget expenditures amounted to 16.7 trillion tenge, the priority of which remains the preservation of social orientation.

The state fulfilled the main social obligations: pensions and benefits in the amount of 4 trillion tenge, subventions to the regions - 4 trillion tenge, target contribution of the Compulsory Medical Insurance Fund 1.3 trillion tenge. Local budget expenditures totalled 10.1 trillion tenge. The main share of expenditures is also directed to the social sphere amounting to 5.2 trillion tenge or 51%. Expenditure on housing and utilities totalled 1.3 trillion tenge, agriculture 602 billion tenge, transport and communications 918 billion tenge.

One of the important components of budget execution is the public procurement process. More than 120 thousand suppliers and more than 24 thousand customers are registered on the web portal. The volume of public procurement at the end of 9 months of 2024 totalled more than 7.8 trillion tenge. In the past reporting period, the optimisation of budget funds through savings in public procurement amounted to 813 billion tenge," the Minister said.

Conducted 1.2 thousand audit activities to the amount of 6.7 trillion tenge of budget funds. Financial violations for the amount of about 260 billion tenge were identified. Violations for 214 billion tenge have been eliminated.

Work is underway to systematically reduce the share of government procurement from a single source through direct contracting. Thus, from 2017 to 2024, the share of such purchases decreased from 64 per cent to 23 per cent.

The Ministry will continue to work on improving the efficiency of management and utilisation of budget funds, state assets and quasi-public sector entities, including through the expansion of implemented digital tools.

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16.10.2024, 09:49 1211

Investments in education and communications increased by 79.3% and 81.7% respectively

Deputy Prime Minister - Minister of National Economy Nurlan Baybazarov reported on the results of socio-economic development of the country for 9 months of 2024 at the Government session, primeminister.kz reports.

Thus, according to the results of January-September the economy growth was 4%. Due to the measures taken for the third month in a row there is an acceleration of growth. In the real sector it amounted to 5%, production in the services sector grew by 3.8%.

The growth of the economy this year is fully provided by the development of the non-resource sector. Among the sectors, agriculture and construction show the highest growth. Transport services grew by 8%, communications - by 6.4%, trade - by 6.3%, manufacturing - by 4.8%. 65% of GDP growth is provided by trade, manufacturing, construction and agriculture," Deputy Prime Minister said.

Investments in fixed assets grew by 0.6%. The greatest growth is observed in non-resource industries: communications - by 81.7%, education - by 79.3%, transport - by 31.1%, manufacturing - by 6.3%, health care - by 4.8%.

The best indicators are observed in Almaty, Pavlodar, Kyzylorda, Turkestan oblasts and Zhetisu. At the same time, a significant decrease in investment is observed in Atyrau, Akmola, Aktobe and Mangystau regions.

In January-August this year, foreign trade turnover totalled $91.7bn. Exports amounted to $53.5bn, including exports of processed goods - $17.8bn. Imports of goods - $38.1bn. The positive trade balance increased by 34.8% to $15.4bn.

Manufacturing maintains a positive growth rate. The volume of production increased by 4.8 per cent. Growth was recorded in 14 regions. The largest increase is noted in Kyzylorda region, Mangystau region, Turkestan region, Aktobe region and Ulytau. Growth in the manufacturing industry is mainly due to the growth of production in metallurgy by 8.3% and mechanical engineering by 4.2%," the Minister stressed.

In addition, production in the chemical industry increased by 9.5%, electrical equipment by 11.3%, pharmaceutical products by 15%, metal products by 31.1% and furniture by 17.9%.

Nurlan Baibazarov also noted an increase in production in the mining industry by 1.2%. This is due to an increase in the extraction of metal ores by 7.7% and natural gas by 3.4%. Oil production decreased by 0.3%, coal - by 0.5%. However, economic growth excluding oil production is estimated at 4.5% against the corresponding base of the previous year.

Construction also demonstrates high growth rates. The growth of works accelerated to 10.1%. High indicators were ensured due to the implementation of four large-scale initiatives of the Head of State on housing construction, construction of transport and social infrastructure, as well as modernisation of engineering networks.

Positive dynamics was recorded in 18 regions. The greatest growth of construction and installation works is noted in Kyzylorda, Karaganda, Turkestan regions, Zhetisu and Abay. Decrease in construction is noted in Atyrau and Mangystau regions.

In January-September this year, 12.4 million m2 of housing was commissioned, which is 6.2% more than the corresponding period last year. The highest indicators are observed in the city of Shymkent, North Kazakhstan, Pavlodar and Turkestan regions," Nurlan Baibazarov said.

Agriculture has entered an active phase of growth. Due to the accelerated pace of harvesting grain crops, the volume of industry output increased by 11.4%. Including in crop production growth was 17.8%. The best results were shown by Akmola, Kostanay, Karaganda and North-Kazakhstan regions.

To ensure this year's targeted growth of the economy reserves are trade, construction, transport and manufacturing industry.

As part of the implementation of the Action Plan for Economic Growth, central and local executive bodies need to:

Ensure the utilisation of investment budgets with strict control over the amount of utilisation;
Ensure the planned volumes of oil production by the end of the year;
Samruk-Kazyna Holding should ensure that the group of companies increases the purchase of products from domestic producers;
To complete the collection of grain in full volume, Kazakhstan Temir Zholy JSC and interested state bodies to ensure uninterrupted transportation and sale of grain, including for export.

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15.10.2024, 14:52 786

Business activity in Kazakhstan remains in surplus for eight months in row

Head of the National Bank Timur Suleimenov told about the results of socio-economic development and execution of the republican budget for 9 months of 2024 at the Government session chaired by the Prime Minister of the Republic of Kazakhstan, primeminister.kz reports.

He reported that the index of business activity, compiled on the basis of surveys of the National Bank, at the end of September this year was 51.2 points. The index remains in the positive zone for the eighth month in a row. In services, the index was 51.6, while in manufacturing the index was 52.4 points.

Meanwhile, the business climate index also remained positive in September. That is, current and future business conditions are assessed positively by the National Bank.

Annual inflation continues to slow down in the country, having made 8.3% in September.

The main contribution to the slowdown in price growth is the disinflation of food products - 5.1%. The growth of prices for non-food products amounted to 7.6%.

At the same time, the highest growth, according to Timur Suleimenov, continues to demonstrate inflation of paid services - 13.6% against the background of the ongoing programme ‘Tariff in exchange for investment’ and appreciation of a number of market services.

As for the monthly inflation, it slowed down in September and amounted to 0.4%, being slightly higher than the historical average.

In general, the price dynamics is in line with the forecast of the national bank and is formed under moderately tight monetary conditions.

Despite the decline in inflation, there is growing pressure on prices due to the presence of risk factors both in the external sector and within the economy.

Pro-inflationary pressures persist in the domestic economy on the back of sustained domestic demand, continued fiscal stimulus, rising inflation expectations, and rising regulated prices.

From the external environment, the risks are associated with the acceleration of inflation in a major trading partner - Russia and rising prices in the world food markets.

In these circumstances, the National Bank did not change the base rate, keeping it at 14.25%.

Also during the Government session, the chairman of the National Bank noted the importance of improving fiscal policy and reducing the volume of transfers from the National Fund.

Separately, Timur Suleimenov informed the Government about the situation on the currency market of the country. In September, the exchange rate of tenge slightly strengthened by 0.1% to 481.11 tenge per dollar. However, since the beginning of the year weakened by 5.8%.

In September, the tenge was supported by currency sales to ensure transfers from the National Fund to the national budget in the amount of $945 million.

Also, as part of levelling possible negative effect on the currency market of purchase of Kazatomprom JSC shares by the National Bank, they were sold $241.5m.

The volume of foreign currency purchase for investment of pension assets of the EPPF amounted to $500 m. In connection with the achievement of the currency share of pension assets of the EPPF target level of 40%, it was decided to suspend the purchase of foreign currency.

According to the head of the National Bank, the further dynamics of the tenge will depend on the expectations of market participants, the situation on world markets and changes in the geopolitical situation.

Timur Suleimenov said that the National Bank will continue to adhere to the flexible exchange rate regime, which excludes the accumulation of imbalances and ensures the safety of foreign exchange reserves.

The current account deficit due to the improved trade balance in 1H decreased to (-)$0.3bn from (-)$5bn in 1H last year.

Gross international reserves at the end of September totalled a record $107.2bn.

At the same time, the National Bank's international reserves increased by 23.6% YTD to a record $44.5bn.

Assets of the National Fund increased by 4.5% YTD, amounting to $62.7 billion. The main source of income was investment income, which accounted for 10.27% or $6.16 billion in 9 months of this year.

Pension assets of the UNPF also continue to show positive dynamics. Since the beginning of the year, they increased by 17.66% to 20.95 trillion tenge. Investment income since the beginning of the year totalled Tg 2.12 trillion. Pension contributions totalled T1.85 trillion, while early withdrawals amounted to T375.5 billion.

Timur Suleimenov said that the National Bank monitors the changing situation in the external and domestic markets and will continue to work to ensure macroeconomic stability and further policy to reduce inflation.

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15.10.2024, 12:33 9776

Olzhas Bektenov on 4% of GDP: Economic growth is ensured by non-oil sector development. Diversification is result of this. Efforts should be redoubled

At the Government session under the chairmanship of Prime Minister Olzhas Bektenov summarised the results of socio-economic development of the country and the implementation of the republican budget for 9 months of this year, primeminister.kz reports.

Deputy Prime Minister - Minister of National Economy Nurlan Baibazarov, Minister of Finance Madi Takiyev, as well as Chairman of the National Bank of Kazakhstan Timur Suleimenov made reports. Akims of a number of regions, where there is a lag behind the planned indicators, were heard on sectoral dynamics and attraction of investments.

According to the Ministry of National Economy, GDP growth for the first 9 months of this year reached 4% compared to the same period last year. This indicator is provided by positive dynamics in agriculture (+11.4%), construction (+10.1%), trade (+6.3%), manufacturing industry (+4.8%). At the same time there is a decrease in oil and coal production.

Head of the Government stressed that the growth of the economy due to the development of industries of non-oil sector, indicates the continued diversification in accordance with the tasks set by the Head of State.

The importance of active work of akimats and ministries to achieve the target economic indicators was noted. Today, steady growth in key parameters is demonstrated by Almaty, Karaganda, Kyzylorda, Pavlodar, Turkestan, East Kazakhstan regions, Astana and Shymkent cities. The lowest indicators were achieved in Atyrau, Mangystau, Zhambyl region, West Kazakhstan and Akmola regions.

Daily monitoring is required, taking timely measures to promote the growth of lagging industries. Akimats need to focus on supporting the manufacturing industry, as well as stimulating construction and trade. There are great reserves here," Prime Minister Olzhas Bektenov emphasised.

Special attention at the meeting was paid to the issue of attracting investment in fixed assets. According to the results of 9 months, 11 regions have not reached the planned indicators.

The relevant ministries and akimats should on a permanent basis assist entrepreneurs in expanding markets for their products and export basket. It is necessary to search for foreign enterprises to relocate production facilities and promote increased localisation at existing production facilities. I set a task for everyone to ensure the fulfilment of the target indicator on investment in fixed assets by the end of the year," Olzhas Bektenov instructed, highlighting the manufacturing sector, agribusiness, transport and logistics, as well as water and electricity supply. The MFA is tasked to strengthen investment work with monthly reporting on the results and problematic issues at meetings of the Investment Headquarters.

As part of the implementation of the Plan of measures to control and reduce inflation, the head of the Government instructed regional akims to continue work to contain prices for socially important goods. In September, inflation slowed down to 8.3%.

One of the priority tasks remains the support of domestic producers and increase in the share of treasury. Prime Minister noted the need for affordable financing of small and medium-sized enterprises with good potential for growth. At the same time, the ministries of industry, finance, national economy together with the Chamber ‘Atameken’ need to ensure effective monitoring of the use of domestic goods.

On disbursement of funds the administrators of budget programmes have been instructed to strengthen financial discipline.

State and local executive bodies need to mobilise all resources for qualitative growth of the economy by the end of this year. In the current conditions it is not easy. Therefore, it is necessary to redouble efforts in this direction. This will require coordinated and effective work of each ministry and the region," Olzhas Bektenov emphasised.

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05.10.2024, 11:12 40956

Beet growers in Kazakhstan to receive payments for crop yields in nearest future

Under the chairmanship of Deputy Prime Minister Serik Zhumangarin, the Government held a meeting on production and stabilisation of prices for basic foodstuffs. During the discussion, decisions were made to provide sugar factories with working capital and payment of subsidies to beet growers, primeminister.kz reports.

This year's gross beet harvest is expected to amount to 1.1 million tonnes, which will yield about 120 thousand tonnes of sugar. With the beginning of the harvest, beet growers have repeatedly raised the issue of subsidies and payment by factories for the delivery of beet for processing. According to the regulations, farmers receive subsidies of 25 tenge for each kg of beet, and the purchase price at the factories is 15 tenge/kg. In total, the farmer is entitled to 40 tenge per 1 kg of the crop submitted for processing.

By the decision of the Government at the end of September, the list of activities of socio-entrepreneurial corporations in Zhetysu, Zhambyl and Almaty regions, where beetroot is grown, was expanded, which will allow these corporations to finance sugar factories to replenish working capital at a favourable interest rate. The total amount of preferential lending to sugar factories from Agrarian Credit Corporation JSC is 25.8 billion tenge. The credit line has already been opened for the plant "Aksu Kant" in the amount of 15 billion tenge and allocated through SPK "Zhetisu" 1.6 billion tenge. Merken sugar factory has been granted a credit line for 10.8 billion tenge. This will allow sugar mills to pay sugar beet growers for the new crop in the near future.

To subsidise farmers for the delivery of sugar beet for processing (25 tenge/kg), the necessary funds will be allocated from the Government reserve in the near future. Payments to farmers will be made in stages in accordance with the established procedure. To reimburse the transport costs of farmers in Zhambyl region, who have to transport 100 thousand tonnes of sugar beet to Aksu sugar factory in Zhetysu region, the subsidy norm was increased from 25 thousand tenge to 45 thousand tenge per tonne.

At the meeting, Deputy Minister of Agriculture Yermek Kenzhekhanuly informed about the results of the audit of food stocks in the regional stockpiles. A working group was set up for the audit, which included representatives of the Committee of Trade of MIT, Committee of State Inspection in the agro-industrial complex of the Ministry of Agriculture, Ministry of Agriculture, AZRC. According to the results of the audit, the declared state of stocks was confirmed. However, the audit in Aktobe region showed that not all forward contracts were concluded exactly with agricultural producers. Serik Zhumangarin gave the Akimat of the region a one-week deadline to renegotiate contracts with existing farmers. Trade Committee was instructed to assist in finding vegetable producers from other regions, ready to supply products to Aktobe region.

The meeting also noted the continuing deflation of basic food products: from the beginning of the year to 1 October the dynamics of price growth was -0.3%. Over the past week, the average price index remained unchanged, with zero growth rate.

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