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Minister of National Economy: National budget expenditures increased by 2.6 trillion tenge

by February 15, 2017 Health

National budget expenditures have increased by 2 trillion 615.1 billion tenge. This was reported by the Minister of National Economy Timur Suleimenov during the plenary session of the Majilis, where the draft Law On introducing changes and amendments to the Law On the National Budget for years 2017-2019 was considered.

Based on the updated macroeconomic forecast, the forecast for National budget parameters for 2017 was corrected. National budget revenues in 2017 are estimated at 4 trillion 891.9 billion tenge, which is 553.7 billion tenge higher than the approved plan. The main increase of revenue is expected from CIT, VAT through improved macroeconomic indicators, and export duty for oil (through increased export duty for oil from 35 to 50 USD per tonne at higher oil prices).

In order to implement instructions given by the Head of State in his Presidential Address on February 3, this year, as well as taking additional anti-crisis measures, it is envisaged to increase target transfer from the National Fund by 1 trillion and 92.9 billion tenge to 1 trillion 534.6 billion tenge; budget deficit increased by 969.8 billion tenge to 1 trillion 547.9 million tenge. Guaranteed transfer from the National Fund is kept in the previously approved amount of 2 trillion 880 billion tenge.

With this in mind, the forecast for budget expenditure in 2017 is defined in the amount of 11 trillion 176.4 billion tenge, which is 2 trillion 615.1 billion tenge higher than the approved amount, T. Suleimenov said.

According to him, the forecast of macroeconomic indicators for 2017 was corrected based on the following factors. Rectification of the GDP growth from 1.9 to 2.5% – in 2017 the GDP is forecast to amount to 49.7 trillion tenge, which is higher than the approved indicator by 1.35 trillion tenge.

GDP growth is expected through higher industrial growth to 3%, manufacturing at 2.6%, and transportation and storage up to 4%. Oil production is projected by the Ministry to increase in 2017 to 81 million tonnes. Furthermore, the forecast for oil prices has been increased from 35 to 50 USD per barrel. Also, the metal price index will increase 5.5% compared to 2016. The USD exchange rate has been reduced from 360 to 330. The forecast for exports has been increased by 4.9 billion dollars to 45.1 billion dollars, import � by3.6 billion to 32.7 billion dollars. Target inflation corridor has remained at the previously approved level of 6.0-8.0%.

As T. Suleimenov said, the adjusted draft budget ensures the preservation of macroeconomic and social stability, and ensures execution of all social obligations.

Source: Government of the Republic of Kazakhstan