Kazakh state budget to receive about $ 20 billion in 2018

By  Trend

By Abdul Kerimkhanov

The state budget revenue plan (excluding transfers) for January-November was exceeded by 102.6 percent, said Minister of Finance, Alikhan Smailov, at a meeting of the Government of Kazakhstan on December 11.

As he stressed, the budget received 7.38 trillion tenges ($ 19.9 billion), which is 232 billion tenges ($ 627 million) more than in 2017. The revenues of the republican budget were fulfilled by 102.1 percent, local budgets - by 104 percent. State budget expenditures were executed by 98 percent, the republican budget — by 98.6 percent, and local budgets — 98.2 percent.

According to the Ministry of Finance, the republican budget received 5.3 trillion tenges ($ 14.3 billion), which exceeds the annual plan for 2017. At the same time, annual plans for export customs duty on crude oil and mineral extraction taxes have been exceeded by 109 billion tenges ($ 294.6 million) and 38 billion tenges ($ 102.7 million), respectively.

The growth rate of revenues amounted to 120 percent, which is 873 billion tenge ($ 2.4 billion) more than the same period last year. This increase was formed mainly due to tax revenues.

“The increase in the volume of production of goods and services in certain sectors of the economy, the rise in prices for the main export positions, the increase in the average oil price and the $ exchange rate, the improvement of tax and customs administration influenced tax growth”, said Smailov, stressing that by the end of the year, budget revenues are expected to be fulfilled by 103 percent, expenses - at the level of 99.6 percent.

Kazakhstan continues to withstand challenges related to lower oil prices and slower growth in Russia, China, and Europe. The authorities’ response -- targeted fiscal support, exchange rate adjustment, strengthened domestic liquidity management, and structural reforms focusing on the business climate and public administration -- has helped stabilize conditions.

Kazakhstan’s real GDP growth is projected to reach 3 percent in 2017-2020, according to the recent S&P Global Ratings report. 

GDP growth is expected due to higher rates of industrial growth up to 3 percent, manufacturing at the level of 2.6 percent, construction up to 2.6 percent, transport, and storage up to 4 percent.

The implementation of government infrastructure development programs and expanding oil production at the Kashagan oil field, one of the world’s largest fields discovered in the past 40 years, are called the main drivers of the nation’s economic growth.