Tax revenues to the National Fund of Kazakhstan increased by 76%

Tax revenues to the National Fund of Kazakhstan increased by 76%

At the end of 2018, direct tax revenues to the National Fund of Kazakhstan amounted to 3,200.8 billion tenge, exceeding revenues in 2017 by 1,119.7 billion tenge, or 59.9%. At the same time, investment income in three quarters from managing the fund amounted to 1,806.1 billion tenge. Thus, the gross asset growth of the National Fund for 2018 amounted to 5 trillion tenge.

In terms of tax revenues, the largest increase is observed in CIT at 594.5 billion tenge, or 75.6%. The increase in the share of Kazakhstan with the division of products by 523.3 billion tenge, to 809.2 billion tenge should also be noted.

With a breakdown of tax revenues in 11 months by region, 92.2% comes from the western regions. Atyrau region accounts for almost half of all revenues.

Such a significant increase in revenues in 2018 occurred against the background of relatively high oil prices, as well as growth in oil production and exports. In particular, on December 28, the Caspian Pipeline Consortium reported on the shipment of 60 million tonnes of oil from the beginning of 2018, which is 8.9% more compared to 2017. Meanwhile, about 53 million tonnes of oil accounted for Kazakhstan shippers. About 75% of all export oil resources of Kazakhstan are pumped through the CPC pipeline.

However, not all of the funds received remained on the accounts of the National Fund. Thus, 2,600 billion tenge was transferred to the republican budget in the form of guaranteed transfers, while 18.1 billion tenge was additionally allocated to cover expenses related to the management of the Fund. Taking into account all revenues and expenditures, the funds of the National Fund for 2018 increased by 2,461.9 billion tenge to 25,386.5 billion tenge. Taking into account investment income for the fourth quarter of 2018, the total amount is likely to be even higher.

In 2017, the republican budget was heavily dependent on transfers from the National Fund, and as a result, despite record tax revenues of KZT2,001.1 billion and relatively high investment income of KZT1,429.0 billion, the Fund's funds decreased by 941.1 billion tenge. In 2017, 4.42 trillion tenge were allocated from the Fund. Meanwhile, from 2018, the government reduces the dependence of the republican budget on transfers from the National Fund. Thus, the size of the guaranteed transfer from the National Fund to the republican budget in 2018 amounted to 2.6 trillion tenge. The size of the guaranteed transfer in 2019 will be 2.45 trillion tenge, 2.3 trillion tenge in 2020, and 2.0 trillion tenge in 2021. The legislation of Kazakhstan provides that funds in the National Fund should not fall below 30% of GDP.

Reported by Kapital (Kazakhstan).