11 May 2020, 19:18
Pursuant to the instructions of the Head of State, an additional 125 billion tenge is provided for anti-epidemiological measures as part of the budget refinement for 2020. This was announced at an online briefing in the Government of Kazakhstan by the First Deputy Prime Minister – Minister of Finance Alikhan Smailov.
In updating the republican budget for 2020, the non-oil deficit was increased from 7% of GDP to 10.8% of GDP. The factor of this growth was the increase in guaranteed transfer from the National Fund.
“This is a one-time action, we adhere to the concept of the need for savings in the National Fund. The government will take measures to reduce this guaranteed transfer from the National Fund,” Smailov said.
Moreover, he explained that the use of funds from the National Fund in 2020 was a necessary measure.
“Since the crisis that is currently experiencing not only Kazakhstan, but the whole world, is larger and deeper than all the crises that we experienced during the years of our independence. We are currently working to increase our budget revenues for the next three years, optimize and reduce budget expenditures. To reduce the non-oil deficit, we plan to reduce its level by half by 2023 — to 5.3% of GDP,” the minister said.
The government has planned work to gradually reduce the non-oil deficit.
“We planned before the end of the year the price of oil at $20 per barrel. This means that we do not plan any revenues from the oil sector. Next year, the price of oil will not be much higher than this value. This means that the Government will not rely on oil revenues in its work, but will work to increase the tax base in the non-oil sector,” Smailov emphasized.
It is worth noting that as part of the budget refinement for anti-epidemiological measures, an additional 125 billion tenge is provided, of which:
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