WEEKLY REVIEW: Cabinet has identified budget for next 3 years & announced forecasts of socio-economic development until 2018


WEEKLY REVIEW: Cabinet has identified budget for next 3 years & announced forecasts of socio-economic development until 2018The Government of Kazakhstan approved the draft budget for 2014-2016, which was developed on the basis of macroeconomic forecasts. The main budget parameters were announced by Minister of Economy and Budget Planning Yerbolat Dossayev.

On Tuesday, August 27th, at a meeting of the Government of Kazakhstan has been discussed and approved “Energy 2020” program. Introducing the draft program Nurlan Sauranbayev, Vice-Minister of Industry and New Technologies of Kazakhstan, noted that the program essentially involves the creation of an entirely new system of power and includes a profound approach towards 9 destinations.

On Wednesday, August 28, at the next Cabinet meeting, the Government approved the draft Law “On Republican Budget for 2014-2016”.

It was designed in accordance with the Budget Code, in view of amendments on the basis of the socio-economic development and budgetary parameters of Kazakhstan for 2014-2018.

“Budget revenues for 2014 are expected in the amount of 5 trillion 773 billion tenge, which is 10.4% more than this year,” he said.

In 2015 and 2016 it planned to increase revenues (excluding transfers) to the level of the previous year by 555.8 and 636.8 billion tenge, respectively.

“Budget expenses for 2014 are projected at 6 trillion 715 billion tenge with an increase to the level of this year by 10.1%, in 2015 – 7 trillion 234 billion tenge, in 2016 – 7 trillion 887 billion tenge,” the Minister said.

It should be noted that the forecast of expenditures for 2014-2016 was formed taking into account the reduction of the deficit forecast in the three-year period, which will be 942.4 billion tenge in 2014, or 2.4% of GDP; 977.7 billion tenge in 2015, or 2.2% of GDP; 963.5 billion tenge in 2016, or 1.9% of GDP.

The draft budget envisages continuing the implementation of the State Program of Forced Industrial-Innovative Development, Business Roadmap, Employment Roadmap, programs on development of the regions and single-industry towns, Affordable Housing Program and Agribusiness 2020 Program.

In addition, on the same day the first meeting of the Steering Committee for improving the model of financing the program of Kazakhstan’s industrialization took place.

It was attended by heads of state agencies, national holding, development institutions, international experts and representatives of the business community of Kazakhstan. The round table discussed the model for funding the second five-year plan of the state program of forced industrial-innovative development (FIID).

It bears to remind that the Government has set “National Management Holding “Baiterek” JSC and its subsidiaries the task for ensuring financing of priority sectors of the economy and attracting investments for implementation of such state programs as Forced Industrial Innovative Development which will begin in 2015, “Business Road Map”, “Affordable Housing” and others.