Kazakhstan reveals volume of budget revenues for 2020-2022

By Azernews

By Abdul Kerimkhanov

Kazakhstan’s Minister of Economy Ruslan Dalenov announced the forecast of budget revenues for 2020-2022, at a plenary session of the Parliament on October 23.

The forecast are compiled on the basis of the macroeconomic forecast.

"Republican budget revenues (excluding transfers) are projected to be 8.1 trillion tenges in 2020, 8.7 trillion tenges in 2021, and 9.5 trillion tenges in 2022. The budget deficit in 2020 is planned at 2.1 percent of GDP, with a subsequent decrease in 2021 to 1.5 percent of GDP and in 2022 to 1.0 percent of GDP. Taking into account the specified parameters, the budget expenditures are forecasted in 2020 in the amount of 12.9 trillion tenges ($33.2 billion), while in 2021 they will be 13.2 trillion tenges ($33.9 billion), and in 2022 - 13.7 trillion tenges ($35.2 billion)," Dalenov said.

Dalenov also submitted for consideration in the Parliament the forecast of the country's socio-economic development for 2020-2024.

"Real GDP growth is projected at 4.1 percent in 2020, while in 2024 it will reach 4.7 percent. The average annual GDP growth rate over 5 years will be 4.4 percent. GDP growth will be ensured by increasing gross capital formation, domestic consumption and exports," the minister said.

He further added that investment will be the main factor in maintaining the country’s economic growth. “The main growth will be in the non-oil sector, in particular, manufacturing, services and construction. The average growth of these industries will be at the level of 4.7 percent. Contribution to GDP growth will be 3.5 percent. Oil production will increase from 90 million tons in 2020 to 100 million tons in 2024. The increase in production will be due to the expansion of the Tengiz, Karachaganak, Kashagan fields and the commissioning of offshore fields,” he stated.

Dalenov further said work is underway to increase the assets of the National Fund.

"Today’s threshold of 30 percent of GDP is respected. The National Fund’s assets cannot be lower than this, and when planning revenues and guaranteed transfers, we make sure that this order is maintained and not violated." he added.

During the plenary meeting, the deputies of the Parliament approved the draft law "On Guaranteed Transfer from the National Fund for 2020-2022," according to which the size of the transfer is determined in the amount of 2.7 trillion tenges ($6.9 billion) in 2020, with a subsequent decrease to 2.6 trillion tenges ($6.7 billion) in 2022. Total funds of the National Fund as a percentage of GDP are reduced - from 35.8 percent in 2020 to 31.6 percent in 2022.

Dalenov noted that the government is trying to save the funds of the National Fund.