One of the key areas of focus for the cabinet of ministers, as stated by President Kassym-Jomart Tokayev, is the reform of tax and budget policy. He emphasized that new, quite strict budgetary rules have been in effect in Kazakhstan for the second year. However, in reality, they are not functioning.
“The government itself must answer the question of why this has happened,” the president declared at an extended cabinet meeting.
Kassym-Jomart Tokayev mentioned that the government will increase investments in the economy.
“Therefore, the government must allocate all resources in accordance with clearly defined priorities. This is one of the fundamental principles of budget discipline that the government and akims must adhere to,” he instructed.
Additionally, he noted that the planning and execution of the state budget largely depend on the effectiveness of measures to control inflationary processes.
“The National Bank and the government must make bold, unconventional, yet calculated decisions. The time for operating according to templates has passed in the context of rapidly changing global economic conditions. Therefore, the measures taken must correspond to the new serious challenges,” he added.
The measures proposed by the government could replenish the budget without additional transfers from the National Fund. However, precise calculations and consideration of all accompanying factors are necessary. Thus, the task is to carefully develop new Budget and Tax Codes and adopt them in a timely manner.
“Rational and equitable distribution of state funds among budgets at all levels, down to rural districts, is of great importance.
In calculating general transfers, all existing disparities should be taken into account. Projects aimed at reducing the lag of specific regions from the national level should be prioritized for funding from the republican budget. At the same time, the government must pay attention to the issues and needs of all regions to ensure that their development is not slowed and their socio-economic situation does not deteriorate,” the president instructed.