BAKU, Azerbaijan, Apr.14
By Nargiz Sadikhova - Trend:
Kazakhstan’s republican budget revenues decreased by 10.5 percent in 1Q2020 compared to 1Q2019 due to the negative impact of external factors on the economy, Kazakhstan’s First Deputy Prime Minister – Minister of Finance Alikhan Smailov said, Trend reports with reference to the press office of Kazakhstan’s prime minister..
Smailov said that revenues of the state budget were implemented by 89.9 percent, the republican by 78.8 percent, local budgets by 121.4 percent. The growth rate of state budget revenues compared to the same period last year amounted to 101.2 percent, local budgets to 133.1 percent.
The republican budget received revenues of 1.4 trillion tenge ($3.2 billion). The plan was not executed by 378 billion tenge ($887.9 million). The default occurred mainly due to taxes which were affected by a number of external factors.
First, coronavirus pandemic had a negative impact on the receipt of VAT and import. In particular, the reduction in imports from third countries amounted to $87 million. Due to the reduction in import, a decrease in tax revenues from 11,400 taxpayers worth 49.1 billion tenge ($115.3 million) was observed. In addition, during the reporting period, the number of vehicles arriving from China decreased by 29.3 percent.
Second, non-compliance with corporate income tax was affected by lower prices of the main export goods: on crude oil by 22.1 percent, zinc by 20.8 percent, copper by 9.4 percent, aluminum by 9.7 percent, lead by 10.1 percent, ferrochrome by 11.6 percent.
Third, due to a decrease in entrepreneurial activity, the plan for VAT on goods of local production was not executed in the amount of 132 billion tenge ($308.9 million).
Despite the current economic situation, we are timely fulfilling obligations to the business. The amount of VAT refunds increased by 84 billion tenge ($197.3 million) compared to the same period of 2019, Smailov said.
The revised republican budget adopted on April 8 oversees the annual income plan of 6.4 trillion tenge ($15 billion). Own revenues of local budgets were overfulfilled by 134 billion tenge ($314.7 million) and amounted to 759 billion tenge ($1.7 million). The overfulfillment was formed mainly due to taxes worth 127 billion tenge ($298.3 million). Revenue plans were overfulfilled in all regions.
Smailov noted that state budget expenditures were executed by 98.7 percent, republican by 99.5 percent, local budgets by 97.7 percent.
“Republican budget expenditures amounted to 2.9 trillion tenge [$6.8 billion]. The growth rate compared to the same period last year amounted to 109.8 percent. Local budget expenditures amounted to 1.2 trillion tenge [$2.8 billion],” Smailov said.
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