GOVERNMENT. Weekly review. We need our own Kazakhstani goods of high quality: K.Massimov
March 5. KAZINFORM. ASTANA
Taking into account new goals of Kazakhstan for the period till 2020, a necessity of introduction of amendments to the national budget for 2010 occured. Kazakh President N.Nazarbayev in his Address to the nation set a range of tasks for the Government, implementation of which demands extension of the expenditure budget.
In particular, the President charged to provide implementation of single budgetary program on development of entrepreneurship in regions “Business Road Map – 2010” beginning from this year.
In accordance with the instructions of the President the Kazakh Government developed draft Law “On amendments to the Law “On republican budget for 2010-2012” and “On guaranteed transfer form the National Fund of Kazakhstan for 2010-2012”.
Kazakh Minister of Economy and Budget Planning Bakhyt Sultanov presented the draft Law at the session of the Government on Monday, March 1. The specified parameters of the republican budget include: revenues – KZT 3 378.4 bln with increase to the current budget by KZT 189.4bln, expenditures – KZT 4 182.0 bln with attraction by KZT 24.1 bln compared to specified budget.
The Minister laid special emphasis on allocation of funds on the following directions: KZT 53.8 bln is provided for increase of salaries of public workers and state scholarships of students in regard to postponement of the 25% increase from July 1 to April 1, 2010, KZT 143.8 bln is allocated for acceleration of measures within the State Program of forced industrial-innovative development of the country, KZT 16 bln – for activates aimed at maintenance of internal political stability and development of the international relations. Besides, KZT 44.4 bln will be allocated for preparation to the 2011 Asian Winter Games and development of infrastructure of Astana and Almaty, KZT 11.4 bln – for realization of activities connected with accession to the Customs Union.
As. B.Sultanov noted, in 2010 economic growth in Kazakhstan is projected at 2%. The volume of industrial output is predicted to grow by 3.3%; oil production is expected to make 80 million tons. Inflation rate is estimated to be at the level of 6-8% with improved lower limit of 1.5 percentage points against the previous forecast indicators. The Minister stressed that the forecast was made on the basis of the current tendencies in the world commodity markets and Kazakh economic trends of 2009. The assessments of the international expert organizations were taken into account as well. For instance, the International Monetary Fund increased its forecast for global growth in 2010 to 3.9% due to revival of the economies in the developed countries.
The deficit of the specified national budget for 2010 is up to KZT 803.6 bln, with increase by KZT 50.7 bln compared to the earlier approved indexes.
The Minister noted that the national budget for 2010 is more socially oriented rather than the budgets of previous years.
Kazakh Prime Minister Karim Massimov held a meeting with First Deputy Chairman of the Government of the Russian Federation Igor Shuvalov Tuesday in Astana. The sides discuss topical issues of interaction and cooperation between Kazakhstan and Russia, in particular, the issues touching upon the Customs Union. I.Shuvalov said that the Commission of the Customs Union decided that by April 10, 2010 the domestic procedures should be completed for ratification the Customs Code. The Commission found compromise solution on the issue of distribution of funds received from the import duties.
Later in the day, K.Massimov took part in the enlarged session of Nur Otan Party’s faction in the Majilis of the Kazakhstan Parliament, where the amendments to the national budget developed by the Government were discussed. The Premier noted in his speech that the establishment of the Customs Union led to creation of new conditions for producers and consumers. From a consumer’s perspective, the benefit is that the Customs Union will reduce inflation, since more competition entails more goods. On the other hand, there come the time of new trials and challenges for Kazakhstan’s producers. In this regard, “Business Road Map – 2010” business development program was developed in order to support the domestic manufacturers.
“We need our own Kazakhstani goods of high quality”, K.Massimov said.
He reminded the faction members that the national budget provides additional resources for protection of south borders of the country as long as being the Customs Union member states Kazakhstan is responsible for prevention of goods illegal trafficking.
About KZT 27 billion will be allocated from the republican budget for pilot implementation of Business Road Map – 2020 project this year. New measures of the Government’s support of business includes two directions: the first direction is the financial support of new business initiatives; the second one is the revival of entrepreneurship’s sector i.e. the support of existing businesses that confronted with difficulties in the crisis period. Ending his speech the Prime Minister said that forced industrialization of the country must be closely connected with social programs’ implementation.
The Kazakh Economic Policy Council has held regular session under the chairmanship of on Tuesday as well. The members of the Council discussed the draft Concept of development of state-private partnership in Kazakhstan for 2010-2012 and forms of formation of the capacity market in the electrical energy industry and development of the housing policy.
Besides, the issues of development of the housing policy in the part of development of the system of housing-construction savings and reformation of the system of the technical regulation of the construction sector were discussed as well.
The Kazakh Prime Minister held a meeting with Head of the Russian Government V.Putin on Wednesday, March 3. the discussed the prospects of development of cooperation in space, nuclear and transport sectors and in the field of military-technical interaction. Development of cooperation in fuel and energy complex, issues of sustainable use of water resources of the cross border rivers were discussed as well. Besides, the Kazakh and Russian Premiers will discuss the issues of functioning of the Customs Union and formation of the Single Economic Space.
“Kazakhstan takes the third place among our biggest trade-economic partners. Today Kazakhstan is an absolute leader in integration processes in the post soviet space”, V.Putin said at the meeting.
Special operation group of the Kazakh Government headed by First Prime Minister Umirzak Shukeyev continues its visits to regions. On Friday the group visited Akmola region where it get acquainted with the work of “Ice Food Astana” LLC and the process of implementation of project “Construction Cement Plant” of “BI-Cement” LLC. Later the members of the group visited poultry plant of “KazgerKus” LLC in Yenbekshilder municipality of the region.