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Kazakhstan state budget revenue exceeds projections

Finance Materials 16 February 2021 14:59
Kazakhstan state budget revenue exceeds projections

BAKU, Azerbaijan, Feb.16

Trend:

The state budget of Kazakhstan received revenues in the amount of 526 billion tenge ($1.26 billion) (the plan was fulfilled by 116.1 percent), and the republican budget - 288 billion tenge ($690 million) (fulfilled by 90 percent) in accordance with the Finance Ministry’s data, Trend reports referring to the Kazakh Government’s press service.

According to the press service, the plan for incomes wasn’t fulfilled by 32 billion tenge ($70 million), and for taxes - by 37 billion tenge ($89 million).

As the ministry’s head Yerulan Zhamaubayev explained, the main amount of non-fulfilled taxes fell on the value-added tax (VAT) and corporate income tax (CIT).

The plan for VAT wasn’t fulfilled due to:

- increase in a refund of this tax type by 2.3 times or by 31 billion tenge ($74 million) compared to January 2020;

- decrease in sales turnover according to the ‘Electronic invoices’ information system by 14 percent;

- decline in the mining industry, where turnover fell by 29 percent or 373 billion tenge ($900 million) compared to January of the previous year;

- decrease in the trade of Kazakhstan with third countries by 22 percent compared to January 2020.

"Non-fulfillment of the plan for CIT was due to a decrease in the number of declared advance payments in January 2021 for 743 large taxpayers compared to the same month of 2020 by 38 percent or 28.6 billion tenge ($69 million)," Zhamaubayev noted.

As for the revenues of local budgets, according to the ministry, the actual revenues exceeded the forecast by 178.6 percent and made up 239 billion tenge ($570 million).

The actual income exceeded the forecast in all regions of the country. The state budget expenditures were executed by 91 percent, republican - by 94.4 percent, and local budgets - by 80.6 percent.

The republican budget incurred expenditures in the amount of over 1.2 trillion tenge ($2.9 billion). Expenditures in the amount of 72 billion tenge ($17 million) weren’t fulfilled, of which 7 billion tenge (1.7 million) economized, and 65 billion tenge wasn’t disbursed. The largest amounts of non-disbursed expenditures accounted for the Finance Ministry, Ministry of Digital Development, Innovation and Aerospace Industry, Ministry of Emergency Situations and Ministry of Education and Science, and Ministry of Culture and Sport.

The main reasons for this were:

  • long-term coordination of payment documents;
  • untimely submission of acts of completion;
  • payment for the actually rendered volume of services;
  • late submission of contracts and additional agreements for registration to the treasury authorities.

The local budget expenditures amounted to 203 billion tenge ($490 million), of which 49 billion tenge ($120 million) wasn’t executed. It’s envisaged to allocate targeted transfers in the amount of 1.9 trillion tenge ($4.6 billion) to the regions for this year. As of February 1, they were allocated 32 billion tenge ($77 million). Of these, 79.3 percent was disbursed, a plan for 6 billion tenge ($14 million) wasn’t executed, of which 2 billion tenge ($4.8 million) economized, and 4 billion tenge ($9.6 million) wasn’t disbursed. The biggest non-disbursement fell on West Kazakhstan, Zhambyl, Akmola and Atyrau regions, as well as Nur-Sultan city.

"In January 2021, cameral control covered more than 71,500 public procurement procedures in the amount of 1.1 trillion tenge ($2.6 billion)," said the Finance Ministry’s head.

So, based on the results of inspections, violations in the amount of 38 billion tenge ($91 million) were prevented. Also, 219 audits were held. The audit covered budgetary funds worth 120 billion tenge ($290 million) and established financial violations amounting to 17 billion tenge ($41 million).

Besides, violations for 10 billion tenge ($24 million) were eliminated by restoring the supply of goods, rendering services and performing work, reimbursing to the budget, and reflecting on accounting. 198 recommendations were given to improve and increase the efficiency of audit facilities.

"The comprehensive privatization plan for 2021-2025 envisages the sale of 674 public and private facilities, of which 8 are republican properties, 448 are communal properties, 65 are national holdings and national companies, and 153 are socio-entrepreneurial corporations (SECs)," Zhamaubayev said.

However, given that subsidiaries will also be sold as part of the parent companies, the total number of facilities to be sold is 736. As of February 1, roadmaps for the sale of 384 facilities have been developed and approved. There are already underway preparatory measures for the sale of 8 republican properties, of which 7 facilities will be put up for sale in 2021, and 1 facility - in 2022. To date, road maps haven’t yet been approved for 290 facilities. Of these, 183 are communal properties, 39 - national holdings and companies, and 68 - SECs.

"In connection with the instructions of Kazakhstan’s president, it’s necessary to accelerate the implementation of the Comprehensive Plan. For this, the local executive bodies, SECs, national managing holdings, and national companies should be instructed to urgently develop and approve roadmaps for the sale of the facilities. At the same time, they should envision the timing for the sale of most facilities in 2021," concluded the finance minister.

(1 USD = 416.72 KZT on Feb.16)

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