Despite the countercyclical changes in the world economy, Kazakhstan is experiencing an economic growth above the world average. Growth in the range of 3.8-4% ensures the progressive development of the economy, but the achievement of these indicators is not an easy task, which is carried out by the Government of Kazakhstan.
It should be noted that today a large number of young effective managers are concentrated in the Cabinet of Ministers, rejuvenation of the cabinet is not accidental. The Cabinet is looking for creative breakthrough ideas and often finds them. Many observers note the unprecedented openness of the current government, the meetings are directly broadcast in social networks, and opportunities for feedback from the public are created. Citizens can directly address any member of the cabinet and get a reasoned and prompt response.
The expenditure part of the budget was fulfilled by 99.8% and 11.156 trillion tenge were disbursed. All social obligations to the population were fulfilled in full. In 2017, 5.86 million people received pensions and benefits from the budget, which was allocated 1.9 trillion tenge. Support for motherhood and childhood is one of the key areas of social policy. Funds for the childbirth allowance were allocated KZT 35.2 billion, which was paid to 392.7 thousand people.
Budget revenues in the reporting period amounted to 9 trillion 799 billion tenge, or over fulfilled by 101.1%. Taxes in comparison with 2016 grew by 13%, accordingly, the budget received 4 trillion 848 billion tenge. By expenditure, the highest performance was achieved 99.8%, or 11 trillion 156 billion tenge. The share of social expenses excluding one-time costs for maintaining the banking sector increased from 39% to 41.4% in comparison with 2016.
Involvement of investments plays a significant role in maintaining the stability of the economy and social stability. The government continues to work actively in this direction. It was the current Cabinet, which managed to break the standard system of the arrival of investors in Kazakhstan only in the raw materials sector. The manufacturing industry has become attractive for investors. In 2017 every fourth dollar invested in the economy of Kazakhstan falls on the manufacturing industry, and this is a noticeable progress.
Now active work is under way to create favourable conditions for investors, taking into account the OECD standards and the best international practices. First, the investment climate has been significantly improved. In June 2017, Kazakhstan became an associated member of the Investment Committee of the Organisation for Economic Cooperation and Development, and new approaches to attracting investments aimed at increasing efficiency were adopted.
It was the acting Cabinet of Ministers that began the transition to the objective introduction of green technologies. Thus, with the assistance of the government, the International Centre for the Development of Green Technologies and Investment Projects is being established, which will develop the Register of Best Available Techniques, issue expert opinions and recommendations on the use of technologies to the subjects of industrial and innovative activity for the further implementation of projects. The lists will include the best and most modern green technologies for cleaning air and water.
In Kazakhstan, for example, the renewable energy market is growing every year, in 2017, 1.1 billion kWh was produced. Last year, 5 objects of RES were put into operation. So, in 2017, with the support of the government, the legislative framework for the regulation of greenhouse gas emissions was improved, the National Plan for the allocation of greenhouse gas emission quotas for 2018-2020 was approved.
The fact that the current government is distinguished by a special technocracy and emphasis on achieving concrete results is noted by many observers. It is not accidental that the issue of the transition to the digital economy is actualised.
For example, today the Unified Information System of the Social and Labour Sphere functions, which includes 11 information subsystems in all directions. A significant digitalisation project under the aegis of the government is the electronic labour exchange. It has already been created and is the first implemented project of the Digital Kazakhstan state program. The process of employing citizens is translated into electronic format.
According to the Ministry of Labour and Social Protection of Population, at the moment 45 private agencies and 5 Internet sites for employment are connected to the exchange. Monthly, about 141 thousand people visit the electronic exchange.
Prime Minister Bakytzhan Sagintayev, speaking at the Astana Economic Forum this year, emphasised that the process of building a new green technological structure and achieving sustainable development goals until 2030, timely adaptation of the policy to the challenges of a new generation require the development of promising areas of environmental and innovative cooperation. It is this task that is being actively solved by the government today.
In general, the economic recovery is accompanied by a decrease in inflationary pressure and high investment activity. Inflation since the beginning of the year amounted to 2.2%. As for the same period of 2017, it is lower by 0.5 percentage points. Annual inflation is fixed at 6.5%. Provides to keep inflation in the new corridor at 5-7%. Since the beginning of this year, 134.8 thousand people have been employed. The growth of real wages is traced. In January-April, the average monthly salary amounted to 152.3 thousand tenge. In the first four months of 2018, foreign trade turnover amounted to $21 billion and increased by 24.3% compared to the corresponding period of 2017, including exports to $13.8 billion with an increase of 27%, imports to $7.2 billion, 19.4% more than in 2017.
The revenues of the state budget without taking into account transfers were fulfilled by 105.1%, including the republican by 100.9%, local budgets by 117.1%.
The republican budget received 1781.7 billion tenge, which is 16 billion tenge more than the plan and 173 billion tenge more than in the four months of last year. The growth rate is 110.7%. Over fulfilment was mainly due to taxes. Of them, due to the excess profit tax are 8.5 billion tenge, export customs duty on crude oil are 32.1 billion tenge.
Expert of the Institute of Economic Studies of Central Asian countries Alisher Khamidov, assessing the work of the Government, noted that, in general, the tasks assigned are gradually being resolved, dynamism is seen, the ministers are setting realistic goals and trying to solve them.
The expert noted that to provide 4% growth in the uncertainty of the world energy markets and sanctions against a key trading partner, was not an easy task. In addition, all international financial institutions, including the IMF, in their forecasts drew a more modest economic growth. Therefore, the Cabinet of Ministers managed to work even better than the forecast, the analyst believes.
"It can be seen that the Cabinet managed to reverse the situation in the economy, take it under control, as a result, there was no rapid collapse, it was possible to avoid rising unemployment, worsening socio-economic status of citizens. The situation on the foreign exchange market has stabilised, there is no big outflow of investors, therefore, on the whole, the government copes with the tasks set. Yes, there are certain shortcomings, mostly related to insufficient information support of some aspects of the work, but these are not the most critical issues. Overall impression is good. I am pleased with the technological style of the government, its focus on modernisation, on the issues of the Fourth Industrial Revolution. We see how the issues of digitalisation, green technologies are actualised - this is a trend that cannot but rejoice," the expert concluded.
By Anatoly Novikov for Kapital (Kazakhstan).
