The government plans to restrict the use of funds from the National Fund. This was stated by the Prime Minister of Kazakhstan, Olzhas Bektanov, during an extended government meeting held with the participation of President Kassym-Jomart Tokayev on January 28.
Addressing the president, the head of the government said: “Funds from the National Fund will be requested, as you instructed, exclusively for the construction of large infrastructure projects. At the same time, we will enhance the efficiency of state expenditures and strengthen budget discipline.”
As noted by Bektanov, “subsidy expenditures are permanently increasing across all sectors, without regard to their actual impact and with weak oversight from government agencies. Receiving subsidies has become part of the business model for certain companies.” According to the Prime Minister, over the past three years, the cost estimates for 770 projects have increased by a total of 2.2 trillion tenge.
“We will intensify efforts to improve the efficiency of government spending based on the principle that budget expenditures should primarily focus on economic development, and social support should only be for those who truly need it,” Bektanov promised, adding: “The expenses of the state apparatus for non-priority matters have been reduced by a total of 410 billion tenge.”
The chairperson of the meeting, Tokayev, expressed his views on the allocation of funds from the National Fund: “In general, I certainly confirm that reform is necessary, but it is essential to reduce the transfers from the National Fund.”