Increase in Allocated Funds for 2021: Kazakhstan Government Boosts National Fund Transfers by 850 Billion Tenge
The Kazakh government has made some tweaks to the national budget for 2021-2023 and the social-economic development forecast for 2021-2025. This bill is set to undergo review in the parliament.
The increased expenditures in the revised budget for 2021 stem from two primary areas: the implementation of the Nur Otan party program and the directives of the Head of State. The budget also covers the battle against the pandemic, modernizing healthcare, and stimulating the economy's real sector.
Consequently, the projected budget expenditures for the republic are expected to be 15.3 trillion tenge, representing a boost of 1.3 trillion tenge compared to the earlier approved figure.
This revised budget allocation will support the following key areas:
- Enhancing the social sector, maintaining law and order, and ensuring security - 182 billion tenge;
- Rolling out the "Roadmap for Employment" and "Eńbek" state programs, as well as the "Aul - el besigi" project - 177 billion tenge;
- Developing agriculture and the housing and utilities sector - 143 billion tenge;
- Building, repairing, and maintaining republican and local roads - 140 billion tenge;
- Aiding small and medium-sized enterprises (SMEs) - 64 billion tenge.
A total of 265 billion tenge is set aside for anti-epidemic measures:
- Additional payments for medical professionals handling quarantine procedures - 70 billion tenge;
- Funding for medical services within the framework of the GOSMP - 80 billion tenge.
The financing for the Head of State's crucial instructions amounts to 154 billion tenge.
Regions are set to receive a combined 539 billion tenge through budget transfers.
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The projected revenues (excluding transfers) for the republican budget in 2021 are roughly 7.2 trillion tenge, which is 279 billion tenge more than the original plan.
The guaranteed transfer from the National Fund remains unchanged at 2.7 trillion tenge. The targeted transfer from the National Fund has risen from 1 trillion tenge to 1.85 trillion tenge.
Predicted Growth Rate in 2021 is 3.1%. The price of oil is foreseen at 50 dollars per barrel, while the national currency exchange rate stands at 425 tenge per dollar.
Inflation is expected to remain within the previously approved range of 4.0-6.0%. The budget deficit is projected to be 3.5% of GDP.
Insights
- Budget management often involves balancing revenues and expenditures, with a deficit possibly arising if expenditures surpass revenues, requiring borrowing or fiscal adjustments.
- Forecasts for socio-economic development usually depend on factors like global market conditions, domestic reforms, and investment in key sectors, with infrastructure projects and social programs playing significant roles.
- The COVID-19 pandemic and geopolitical events can significantly impact economies by disrupting supply chains and reducing global demand, and these factors should be considered in forecasts.
The Kazakh government plans to boost its expenditures in line with the 2021 budget, with a focus on healthcare, the real economy, and anti-pandemic measures. These increase in expenditures come from the implementation of the Nur Otan party program, the Head of State's directives, and anti-epidemic initiatives. The budget also accounts for the finance needed for business support and critical instructions from the Head of State. In 2025, the Kazakh government anticipates expenditures of 15.3 trillion tenge, a 1.3 trillion tenge rise from the initial approved figure.
