GOVERNMENT. Weekly review. PM optimistic on 2010 harvest. No rise in bread prices expected


Muratbek Makulbekov

GOVERNMENT. Weekly review. PM optimistic on 2010 harvest. No rise in bread prices expectedIn September the Government of Kazakhstan will adopt a State Program on Languages Development for 2011-2020. The draft Program developed by the Ministry of Culture on the President’s instruction was considered at the Conference on further functioning and development of languages in the country held July 26.

The document is among 4 priority programs of the Government, namely, forced industrial-innovative development program and the programs of education and healthcare development. As Minister of Culture  Mukhtar Kul-Mukhammed noted, by 2020 95% of Kazakhstanis would know the Kazakh language.

During the discussion Prime Minister Karim Massimov highly appraised the draft document and said: “We must develop a certain plan of the Program’s implementation. For this we must define the terms of its implementation, the authorities responsible for it which should include the representatives of Nur Otan Party, experts, scientific workers and others. All of them must join realization of the Program”.

On the same day Minister of Communications and Information Askar Zhumagaliev held a conference with the heads of Kazakhstan TV channels. The meeting focused on necessity of raising the channels competitiveness, increasing domestic content in the Kazakh language. After the conference the Ministry and heads of state TV channels entered into a memorandum of cooperation. 

The results of the country’s socio-economic development in the first half of the year demonstrate successful overcoming the crisis and moving to a new stage of economic growth. As Minister of Economic Development and Trade Zhanar Aitzhanova informed at the Government’s session on July 27, GDP growth in the first half of 2007 made 8%. In whole, since the beginning of the year the country has onbserved macro-economic stability – unemployment reduced by 0.9% and made 5.8%. Inflation was at 4.4%. Industrial output grew by 11% compared to the same period in 2009. The volume on investments in agriculture grew by 40.2%, in industry – by 27.7% and in construction sector – by 39.8%.

Minister of Finances Bolat Zhamishev reported on the budget revenues. In the reporting period budget revenues made KZT 2 trln 36 bln 700 mln or 93.7%. Budget expenditures made KZT 2 trln 241 bln 300 mln or 93.4%. Budget deficit was KZT 204 bln 500 mln and budget incomes increased by 19.6% against the same period last year.

After the ministers’ reports Prime Minister Karim Massimov noted that the parameters of socio-economic development in the first half of 2010 were quite optimistic. Nevertheless, the same results must be achieved in the second half too, he stressed.

According to Minister of Agriculture Akgylbek Kurishbayev, stable development was observed in agricultural sector too. The total growth of agricultural output made 3.1%. The share of vegetables, sugar beet, potato and forage grass grew significantly. The volume of processing industry output rose 14.6%.

Among the major challenges the sector faces today is establishment of grain stabilization funds and preservation of proper export potential, the Minister noted.

“Taking into consideration the future harvest and our reserves we will fully provide the country’s internal demand in grain and preserve the proper export potential”, he stressed.

As for the regions suffering from drought the Minister informed of establishment of the Government’s working group which decided to supply 400 thousand tons of grain from northern oblasts to western ones.

Summing up the results of the sitting the Prime Minister said the Government would discuss the amendments to 2010 budget in August.

“There are some issues which need additional consideration, namely, the OSCE Summit scheduled for this year, Aziada in 2011 and the industrial-innovative development program”, K. Massimov said and noted that budgetary funds must be used effectively by the administrators of budgetary programs.

At a briefing after the session K. Massimov said that the Government successfully fulfils the President’s tasks.

Speaking on the reasons of GDP growth in H1 2010 the Head of the Government noted positive results of anti-crisis measures implementation and good conjuncture at raw materials market.

Answering the journalists’ questions about drought which led to crop failure in western Kazakhstan, the Prime Minister expressed confidence that this year the country would have enough harvest and assured there would be no rise in bread prices. He also promised the Government would continue regulating fuel and lubricants market.

One more important decision of the Government is reorientation of activity of SamrukKazyna Fund from implementation of  anti-crisis measures to improvement of corporate governance.

“We must return to corporate governance, transparency of economy, deep understanding of what the Fund does on behalf of the state and how it manages the state property”, the Prime Minister said.

On July 29 Prime Minister Karim Massimov held a video conference with the deputies of the Parliament to discuss the urgency and topicality of the issues raised in deputies’ inquiries and appeals. These included implementation of the Strategy of Regional Employment and Personnel Retraining (2010 Road Map), Business Road Map-2020, construction of social facilities in villages, building roads, water supply systems, solution of housing investors problems, restructuring debts of small and medium businesses. Following the discussion the Prime Minister charged the heads of state bodies and akims of the regions, Astana and Almaty cities to adopt the measures for proper execution of the decisions on certain issues raised in deputies’ inquiries and appeals addressed to the Government. 

Problems and prospects of livestock and meat industry development in Kazakhstan were discussed today at the I International Livestock Forum “KazMeat & Milk-2010” in Astana. Opening the event Kazakh Minister of Agriculture Akhylbek Kurishbayev noted that livestock was one of the oldest sectors as long as the Kazakh steppes were appropriate for the livestock development. “Recently the sector was stabilized with the support of the Government and there has been a steady increase in both the livestock numbers and whole animal products”, the Minister said. According to A.Kurishbayev, the Forum is organized to give new impetus to the sector development and define further prospects. Representatives of Food and Agriculture Organization, leading world and domestic experts in the field of livestock, producers of animal products, representatives of the business community of Kazakhstan, Russia, Belarus, Ukraine, Canada and European countries take part in the Forum.