Finance Ministry explains the reasons for the growth of Kazakhstan’s public debt
Deputy Minister of Finance Berik Sholpankulov explained why the public debt of Kazakhstan is growing.
There were many questions about the public debt and the external debt of the quasi-public sector. Indeed, there is a growing trend. The main share in the debt structure is held by the government debt. Its size annually increases by the amount of financing of the deficit of the National budget via borrowing, the Deputy Minister said at the expanded meeting of the Senate Finance and Budget Committee.
According to him, the aim of the Ministry of Finance in the midterm is the reduction of the deficit of the National budget by 1% to 11% by 2020.
This year the deficit of the national budget was 1.5% of GDP against the backdrop of 2017, 2.6% of GDP. That is, there is a downward trend. And in the future, borrowing will be focused on domestic capital markets to avoid dependence on currency risks, Berik Sholpankulov emphasized.
At the same time, Berik Sholpankulov noted that the external debt of the quasi-public sector is also taken under control and this year monitoring will be carried out by the Ministry of Finance
Source: Government of the Republic of Kazakhstan