WEEKLY REVIEW. Budgetary policy aimed at saving funds and increasing return on public investments – Kazakh PM Massimov


Muratbek Makulbekov

WEEKLY REVIEW. Budgetary policy aimed at saving funds and increasing return on public investments - Kazakh PM MassimovIn the nearest future the Government of Kazakhstan will focus on breakthrough development of small and medium businesses, attraction of foreign investors, introduction of advanced technologies, modernization of the existing enterprises.

Making a speech at the enlarged sitting of the People’s Democratic Party Nur Otan’s faction in the Majilis Prime Minister Karim Massimov noted that it was necessary for solving the tasks of post-crisis development and modernization of the economy, set by the Head of the State in his Address to the nation “New Decade – New Economic Growth – New Opportunities of Kazakhstan”.

The discussion of the bills On National Budget for 2011-2013, On guaranteed transfer from the National Fund of the Republic of Kazakhstan and On general transfers between the national, regional budgets and the budgets of Almaty and Astana cities for 2011-2013 was on the agenda of the enlarged sitting.

“Over nine months of the current year GDP growth made 7.5%. This is one of the best indicators in the CIS and, probably, in the world. This is one of the indicators due to which we can ensure stable development of economy”, K. Massimov noted.

Chemical industry observes the greatest increase – 76%. Manufacture of ready metal products rose by 63%. In engineering sphere this figure made 55%. Agricultural output in 9 months 2010 made more than KZT 1 trln. Inflation in January-September 2010 made 5.2%.

Creation of jobs under the Road Map program allowed reducing the unemployment rate up to 5.6%.

Deficit of the national budget will be gradually reduced from 2.8% against the GDP in 2011 to 1.5% against the GDP in 2013. Prime Minister Karim Massimov said at the meeting. The PM reminded that the budget of 2010 was approved with 4.6% deficit against the GDP.

150 industrial projects will be implemented in Kazakhstan till the end of the year. Kazakh Prime Minister Karim Massimov made it public at the enlarged meeting.

“Our new productions represent the beginning of serious structural changes in our economy and its further growth”, K. Massimov noted. The Premier reminded that 72 projects have already been launched in the first half-year, including 8 in the sphere of machine-building, 13 – in metallurgy, 12 – in construction industry.

“All in all the Industrialization Map includes 237 investment projects totaling KZT 7.26 trillion”, the Prime Minister said. Nearly the fourth part of all commissioned enterprises refer to the agro-industrial complex and agricultural processing. Besides, new enterprises are established in the fields of chemistry, pharmaceuticals, oil processing and oil & gas infrastructure.

Chairman of the National Bank Grigory Marchenko noted that gold and currency reserves of the National Bank and the National Fund as of October 1, 2010 made USD 57 bln. According to him, the situation on the currency market is stable now.

On Tuesday, October 26, testing of the first in the CIS LTE pilot network operating in 700 MHz broadband – 4G was held in Almaty. The 4G network testing was held on LTE high-tech equipped laboratory on wheels. Video conferences with Kazakh Prime Minister Karim Massimov and Minister of Information and Communication Askar Zhumagaliyev were organized using the advanced equipment. As earlier reported, “KaR-Tel” LLP already launched the first 4G-standard network based on LTE indoor technology in spring this year in Astana and Almaty.

On the same day Prime Minister Karim Massimov had a telephone conversation with his Russian counterpart Vladimir Putin. The parties discussed implementation of the agreements concluded within the Customs Union as well as the process of preparation of the documents on establishment of the Single Economic Space planned to be signed at the meeting of the Heads of Government of CU countries in November.

On Wednesday, October 27, at the opening ceremony of the International Conference on Housing and Utilities: Problems, Solutions and Prospects in Astana First Vice Prime Minister Umirzak Shukeyev said that the Government planned to allocate over KZT 250 bln for development of housing and utilities sector in the nearest five years.

As the Vice PM noted the Government had approved a branch program on new principles of management of the sector and implementation of resource saving technologies in it.

“In previous ten years the national and local budgets allocated KZT 63.9 bln for the sector’s development. In the oncoming five years we plan to increase this figure up to KZT 250 bln”, Shukeyev added.

A governmental group led by First Vice Prime Minister Umirzak Shukeyev visited South Kazakhstan oblast on October 27. The group surveyed the Koksaray Water Reservoir where the second stage of construction work is being completed. The members of the Cabinet also got familiarized with implementation of the projects on water supply of the city of Shymkent and several settlements. They attended an exhibition of new technologies and equipment used in water supply and drain.

Besides, the delegation took part in a seminar-conference devoted to discussion of the draft Ak-Bulak program on water supply development for 2011-2020. The realization of 2005-2010 Clean Water state program comes to end. Over KZT 16 bln was allocated for the program’s implementation in the region. As of January 1, 2010 482 out of 900 settlements in region use clean drinking water. 247 settlements use local water sources and 13 ones drink water delivered from other areas.

The VII International Exhibition Kazakhavtodor-2010 kicked off in Astana. Taking the floor at the opening ceremony, First Vice Prime Minister Umirzak Shukeyev informed of elaboration of a Program of transport infrastructure development till 2014. The Program provides for implementation of Western Europe-Western China mega-project which will let improve transport infrastructure and give a new impulse to development of regions and related sectors”, he said.