The draft republican budget for 2023-2025 was approved by the Government of the Republic of Kazakhstan

The draft republican budget for 2023-2025 was approved by the Government of the Republic of Kazakhstan

The forecast for the socio-economic development of Kazakhstan for 2023-2027 and draft laws on the formation of the republican budget for 2023-2025 were considered at a government meeting chaired by the Prime Minister of the Republic of Kazakhstan Alikhan Smailov, reports with reference to the Prime Minister's press service.

Minister of National Economy Alibek Kuantyrov reported that the socio-economic development forecast was formed taking into account the final data on economic growth in 2021, the expectations of international financial organizations on global economic growth and prices for export goods.

In the base scenario, which is used as the basis for budget planning, the average oil price is set at $85 per barrel, and the estimated US dollar exchange rate is at the level of 470 tenge. The average annual real GDP of Kazakhstan under this scenario will be 3.9%, including 4% in 2023. At the same time, exports are expected to grow in all major sectors of the economy.

In turn, Deputy Chairman of the National Bank Akylzhan Baimagambetov said that the target corridor of annual inflation in 2023 is predicted within 7.5-9.5%.

Data on the draft republican budget for 2023-2025 was presented by Deputy Prime Minister - Minister of Finance Yerulan Zhamaubayev.

Thus, revenues for 2023 are projected at 17.8 trillion tenge, a guaranteed transfer from the National Fund will be attracted in the amount of 2.2 trillion tenge with a decrease of 1.8 times compared to the current year.

Expenses in 2023 are planned in the amount of 21 trillion tenge with an increase of 2.2 trillion tenge, and their main share falls on the social sphere. 2.1 trillion tenge is provided to support the development of the real sector of the economy.

After listening to the speakers, the Prime Minister noted that the submitted draft republican budget for a three-year period is primarily aimed at the full and timely fulfillment of all social obligations of the state, as well as ensuring high-quality and sustainable economic development in the current conditions.

“The growth of gross domestic product in 2023-2025 is projected at the level of 4-4.1%. The average annual inflation rate is planned to decrease to 3-4% by 2025. Republican budget revenues in 2023 will increase by 3 trillion tenge. Thus, we ensure a high level of growth in our own revenues of the republican budget,” said Alikhan Smailov.

At the same time, the Head of Government stressed that transfers from the National Fund would be significantly reduced: by 1.4 trillion tenge in 2023, by another 800 billion in 2024 and by 500 billion in 2025.

“This is a very important aspect. The guaranteed transfer will not exceed the amount of revenues to the National Fund from the oil sector. And the growth of budget expenditures will not exceed the average level of long-term economic growth, taking into account the inflation target. In general, the draft budget is balanced,” the Prime Minister noted.

Alikhan Smailov also added that the budget is "social". So, 8 trillion tenge is provided for this area in 2023.

At the same time, in the real sector of the economy, the development of the manufacturing industry, business support, development of transport infrastructure and gasification remain priority areas.

“We are faced with the task of making the most efficient use of budgetary funds,” the Prime Minister concluded.

After the procedure for voting for the submitted bills, the Head of Government instructed the Ministries of National Economy and Finance, together with the Office of the Prime Minister, to ensure that they and the forecast of socio-economic development are submitted to the Parliament.

By the Kazakhstanskaya Pravda