Kazakhstan – Key Figures of Kazakh National Budget for 2010-2012

Kazakhstan’s Economy Minister Bakhyt Sultanov unveiled a draft national budget for the period 2010-2012 on September 14 in the Majilis, the lower chamber of the country’s Parliament.

The global economy is showing signs of recovery and Kazakhstan’s domestic economy is following a positive trend since Q2 as anti-crisis measures and more upbeat global prices have become effective. Real GDP growth rate should increase from 2.4% in 2010 to 3.9% in 2014. Inflation rate should decrease from 7.5-8% in 2010 to 7% in 2014.

In this context, the State budget revenues are expected to reach 21.1 billion USD in 2010, with net revenues (without transfers from local budgets and the National Oil Fund [accumulating windfall oil revenues]) standing at 11.4 billion USD. Estimated revenues of the National Oil Fund in 2010 will reach 9 billion USD (7.9% of the total GDP). Legislated transfer from the National Oil Fund to the national budget will amount to 6.6 billion USD.

Budget expenses in 2010 are estimated to reach 25.9 billion USD, which amounts to a 17.9% increase on this year (2009).

The budget deficit should represent 4.1% of Kazakhstan’s GDP in 2010, before declining to 3.8% in 2011 and 3.5% in 2012.

The draft budget is based on a benchmark price of USD 50 per Brent oil barrel in 2010 and USD 60 per barrel in 2011-2012.

Mr. Sultanov gave details of the structure of public expenditures in the years to come. Social projects should be allocated about 40% of total public expenditure. For 2010 only, more than 660 million USD will be dedicated to the State-run program to boost employment in country regions. Healthcare programs should receive 4.3 billion USD.

The agricultural sector – harvesting and sowing campaigns plus long-term capital-intensive projects – will also be strongly supported. To this end, Samruk-Kazyna and KazAgro may issue specific bonds later in the year.