The National budget to be adjusted with the increase of revenues and expenses
During a plenary session the Senate adopted the Law On introducing changes and amendments to the Law On the National Budget for years 2017-2019.
The forecast of macroeconomic indicators for 2017 was corrected based on following facts: Correction of GDP growth from 1.9% to 2.5% – in 2017 the GDP growth is forecast to amount to 49.7 trillion tenge, which is higher than the approved index by 1.35 trillion tenge.
GDP growth is expected through higher rates of industrial growth up to 3%, manufacturing at 2.6%, transport and storage of up to 4%.
Oil production is projected by the Ministry of Energy to increase up to 81 million tonnes in 2017. Furthermore, forecast for oil prices was changed from 35 to 50 USD per barrel. Also the metal price index is projected to increase 5.5% compared to 2016. USD exchange rate was reduced from 360 to 330 tenge.
The forecast for exports is increased by 4.9 billion dollars to 45.1 billion dollars, imports by 3.6 billion dollars to 32.7 billion dollars. The inflation target corridor remains at the previously approved level of 6.0-8.0% � the Minister of National Economy Timur Suleimenov reported.
According to him, national budget revenues in 2017 are amounted to 4 trillion 891.9 billion tenge, which is 553.7 billion higher than the previously approved plan. The main revenue increase is expected from CIT, VAT through improved macroeconomic indexes and export duty for oil (through increased export duty for oil from 35 to 50 USD per tonne under higher oil prices). It is envisaged to increase target transfer from the National fund by 1 trillion 092.9 billion tenge up to 1 trillion 534.6 billion tenge; increase of budget deficit by 969.8 billion tenge to 1 trillion 547.9 billion tenge. Guaranteed transfer from the National fund remains at the previously approved amount of 2 trillion 880 billion tenge.
With this in mind, forecast for national budget expenses in 2017 was amounted to 11 trillion 176.4 billion tenge, which is 2 trillion 615.1 billion tenge above the approved amount.
Source: Government of the Republic of Kazakhstan