PM announces budget adaptions in the face of economic challenges

    Kazakhstan's government will amend the budget and make proposals for improving its usage in autumn 2014, according to the Head of Kazakh Cabinet of Ministers, Karim Massimov, as reported by Kazinform. Massimov made the remarks on June 20 at a joint session of Kazakh parliament's chambers. "We are currently working on a set of measures to be taken to get the effect before late this year while executing the budget for 2014," Massimov said.
    He said the government is going to allocate one trillion tenges (183.51 tenge = $1) fr om the National Fund for the infrastructure development and creation of new enterprises in the manufacturing industry. "Basically, we have already made decisions regarding our proposals, and in case if they are approved by the head of state, they will be included in the revised budget of 2014," the prime minister said.
    Massimov also added that in the first five months there has been some slowdown in exports of main domestic goods producers to Russia and some other countries, Kazinform refers to trend.az.
    "To avoid this decrease, we plan to set our work in four directions to support the traditional sectors and commodity sectors of the economy, because, major revenues to the budget and national fund are generated with the help of their tax deductions," Massimov said.
    "Actually, in the last two to two and a half months, we met with all the major goods producers and listened to the problems they are facing, and the places wh ere we can help them."
    The prime minister said the help could be provided to them in the form of some easing in taxation, and settlement of tariff policy. Massimov said support to the processing industry, and the development of innovative and the science intensive economy will be the direction in the government's work.
    "2014-2015 is a time for the emerging market. First of all, this crisis challenges markets of our neighboring countries – Russia, China and others. We see a slowdown in economy of Russia and in China. It affects the Kazakh exporters to Russia and other states,” AKIpress quoted the Prime Minister of Kazakhstan Karim Massimov at the joint session of the Parliament houses on June 20 in Astana. In order to prevent financial crisis, the Kazakh Government plans to carry out work in four directions. “The first is to support of our traditional sectors of economy, the second - to support the processing industry,” he said. As the Prime Minister noted, 1 trillion tenge from the national fund will be allocated at supporting the manufacturing industry, its development, to attract foreign investment in this direction. "Third direction is development of innovation and knowledge intensive economy. This is the economy of the future. And the last direction is SMEs services’ development. Here we should boost simplifying the procedures and additional financing channels. The creation of new jobs will be in main focus,” the Kazakh PM resumed.
    Kazakhstan is also set to channel 100 billion tenge allotted by the National Fund into the development of food-processing industry, Prime Minister Karim Massimov said at the joint session of the Kazakh Parliament chambers in Astana on Friday, as reported by Kazinform. "The first 100 billion tenge allotted by the National Fund for financial support of national economy was earmarked for the development of food-processing industry," the Premier said. The head of the Government reminded that President Nazarbayev had initiated a range of unprecedented measures to support Kazakhstan's economy financially. "The National Fund has allotted a total of 1 trillion tenge to this end. The first 100 billion tenge out of that sum will be spent to develop food-processing industry and attract foreign investments into that sector," Mr. Massimov noted. He also added that Kazakhstan imports food industry products worth of nearly $3 billion annually.