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Government proposes to transfer organizations of social sphere to a competitive environment

by December 12, 2016 Key Issues

The transfer of social organizations to a competitive environment is possible in the second stage of the commercialization of state owned organizations.

According to Ministry of Finance, 5991 organizations will remain in state ownership after the first stage. Among them, almost half, or 42% are kindergartens. The fifth part is occupied by universities, colleges, organizations of additional education. 13% came from clinics and hospitals, 8.5% – theaters, museums, cultural centers. The other organizations are monopoly, media, veterinary services, etc.

“The bulk are the organizations of social sphere. We believe that it is possible to transfer them to a competitive environment in the second stage after the decision of commercialization issues, completion the reform of universities. The number of state-owned enterprises should be greatly reduced after the introduction of the new organizational and legal form – budgetary institution. Their further transmission by PPP line will strengthen the private business,” B. Sultanov said.

Approximately 1 400 organizations will be in the inventory of state property after the second phase. Speaker noted that business has already expressed an interest in obtaining the trust management of kindergartens.

According to the minister, the measures will improve the effectiveness of budget expenditures and state assets management.

Source: The Prime Minister of Kazakhstan