As previously clarified by Akorda, the meeting will summarize the socio-economic development of the country for 2024 and outline the key tasks for the government in the upcoming period. Reports will be presented by Prime Minister Olzhas Bektenov, Chairman of the National Bank Timur Suleimenov, and akims from several regions.
The event started at 10:50.
Kassym-Jomart Tokayev:
"The expanded government meeting is taking place against the backdrop of radical changes in the world. Global processes may significantly impact the economic situation in our country.
It should also be noted that the transition to a new technological order based on total digitalization will lead to the emergence of qualitatively new realities in the world. We must be prepared for this. Successful adaptation to new realities will be a defining factor for the competitiveness and sustainable progress of Kazakhstan.
The effectiveness of the government and akims will be judged primarily by the results of economic development and the improvement of citizens' quality of life. Today we have gathered to summarize the past year and formulate relevant tasks that need to be solved in the shortest possible time."
According to the agenda, reports will be made by Prime Minister Olzhas Bektenov, Deputy Prime Minister Serik Jumangarin, Chairman of the National Bank Timur Suleimenov, Chairman of the Board of JSC "Samruk-Kazyna" Nurlan Zhakupov, akim of Astana Zhenis Kassymbek, akim of Shymkent Gabit Syzdykbekov, and akim of the Kyzylorda region Nurlybek Naliabaev.
Olzhas Bektenov:
"The government continues to implement the strategic tasks outlined in your election platform, messages, and other program documents. Our priorities have undoubtedly been and remain ensuring quality economic growth and improving the welfare of citizens. In close cooperation with the parliamentary corps, a number of important laws aimed at further developing our country have been developed and adopted...
Last year, the economy grew by 4.8%. High dynamics were achieved in agriculture – 13.7%, construction – 13.1%, trade – 9.1%, transportation – 8.5%. The volume of manufacturing industry increased by 5.9%. The agrarian sector and processing recorded the most dynamic growth in the last 10 years. At the same time, oil production decreased by 2 million 400 thousand tons, negatively affecting the GDP growth rate. Much of this was due to the country's commitments within OPEC+, as well as major repairs at large fields...
By regions, the highest economic growth last year was shown by: North Kazakhstan, Karaganda, Turkestan, Kyzylorda regions, and the cities of Astana and Shymkent. Low dynamics in key indicators were observed in Ulytau, Atyrau, West Kazakhstan, and Zhambyl regions...
In the near future, we will conclude the necessary agreements for the construction of the first nuclear power plant in the Almaty region. We are also completing the analysis of regions to determine potential sites for the construction of the second and third nuclear power plants."
Kassym-Jomart Tokayev:
"Last year, indeed, there were difficulties. Many negative factors affected the development of the economy. However, we kept the situation under control and did not allow deterioration. Overall, we can say that the results are good; the past year ended with positive indicators, but we cannot afford to relax. There are still many problems that require solutions. Experts and citizens are well aware of this.
First of all, the work on diversifying the economy has not been fully completed. The economy remains highly dependent on the National Fund's resources. However, it should be noted that the National Fund, as part of the economy, and the investment activity of businesses are at an insufficient level. These shortcomings must be addressed this year. The government must take concrete measures."
Serik Jumangarin:
"Today, out of more than 2.3 million registered taxpayers, only 137,700 business entities are VAT payers. This is 6% of the total. Of these, only 88,000, or 4% of all taxpayers, actually pay VAT. One reason is the high threshold for VAT registration. Currently, it stands at 78 million tenge.
We propose to reduce the VAT threshold to 15 million tenge. Within this range, 88% of SMEs currently operate. Therefore, we believe that this will not have a significant impact on the segment. In OECD countries, the threshold is even lower, and in some leading economies, it is even zero.
This will finally make VAT a tax for offsetting, bringing in about 300,000 new taxpayers."
Kassym-Jomart Tokayev on tax reform:
"It is necessary to explain to society and the population, in particular, about the social tax. How will we carry out tax administration? You yourself say that you will compensate... All this needs to be discussed and thought through on how to implement this reform. Overall, reform is necessary; I support this reform. However, it needs to be discussed and researched. Therefore, a draft of the new Tax Code is currently under consideration in the Mazhilis.
In 2025, we need to pay particular attention to the Tax and Budget Codes. Overall, I confirm that reform is needed. But now we have the task of reducing transfers from the National Fund and strengthening its savings function. The accumulated funds can be directed towards financing large infrastructure projects – this is a priority. Thus, we will enhance the state's function in development, but I still believe that we need to think very carefully about the social tax."
Kassym-Jomart Tokayev on the work of the National Bank:
The National Bank is working in accordance with its mandate. This is clear. Work is ongoing in real-time. However, questions remain, of course. First of all, people are concerned about the volatility of the national currency. Experts expect pressure on the tenge exchange rate due to the strengthening of the US dollar.
Ensuring currency stability and, in general, curbing inflation is extremely important work. If not to say now – the main work that must be carried out in close cooperation with the government. Previous settings that we are independent and self-sufficient no longer work because the situation is unusual."
Kassym-Jomart Tokayev on Astana:
"Significant work is required to address pressing issues in the capital and to improve the city. We are all witnesses to this. Overall, the akim of the city is working harmoniously, has experience. At the same time, the issue of traffic jams is relevant for the capital – urgent measures and decisions must be taken in this direction.
Another important task is to build processing enterprises. This applies to all major cities and regions.
The quality of housing construction, the construction of underground utilities, and repair work must be under special control."
Zhenis Kassymbek on LRT:
"In December 2024, a comprehensive program for the development of the transport system was approved. Against the backdrop of increasing vehicle traffic in the capital, the focus is on the development of public transport, increasing road capacity, building new bridges, and improving parking space operations.
Every day, more than 1,600 buses operate on city routes. Over the past two years, the public transport fleet in the capital has been updated by 45%.
With your support, the LRT project is nearing completion. Construction work will be fully completed by summer. In September, the first trains will arrive, after which active testing will begin. The city continues to work actively to shape a modern, comfortable, and eco-friendly appearance."
At 12:21, the president's closing remarks began
Kassym-Jomart Tokayev:
"Despite the complex situation in the world, positive results have been achieved in our country. The economy is growing, but there are still many unresolved issues.
Issues related to tariff conflicts and sanctions confrontations are coming to the forefront in the new reality of the global economy. These trends carry serious consequences.
The climate agenda will also undergo significant changes, leading to a revision of approaches to the development of green energy. On the one hand, this will support demand for traditional energy resources. On the other hand, it will lead to destabilization of prices for oil, gas, and coal.
The shift towards widespread use of cryptocurrencies and other digital assets has emerged in the financial sphere. A fundamental factor is the development of artificial intelligence, where competition is intensifying among leading technological powers. In such conditions, we need a clear strategy of action aimed at overcoming the serious challenges of the new era."
Kassym-Jomart Tokayev:
"I have already announced specific areas of reform and approaches to their implementation. The government will have to make difficult decisions and, most importantly, implement them to prevent economic stagnation and ensure its sustainable development