Thursday, 12, December, 2024

The Legislative Chamber passed amendments to the 2024 State Budget Law, which provide for a rise in government spending, in three readings at a meeting on December 3. The document has been submitted to the Senate.

The Ministry of Economy and Finance traditionally did not apply to parliament during the year with a request to allow a rise in spending, did not report to MPs on the need for certain spending, but submitted a bill on amendments at the end of the year. For example: in Kazakhstan, the government clarified the budget 10 times and each time the amendments passed through parliament, and the MPs received explanations about the planned spending.

The consideration of the amendments took the Legislative Chamber 9 minutes (in 2023 - about 20 minutes, in 2022 - 30 minutes). At the same time, the speech of Deputy Minister of Economy and Finance Akhadbek Khaidarov lasted 5 minutes.

Then the MPs of the new convocation adopted the document in three readings without questions or discussion. In previous years, some members of parliament asked questions.

Not a single member of parliament voted against. Neither the government nor the MPs publicly justified the need to rise government spending. Speaker Nuriddin Ismoilov reported that the bills were discussed in committees and factions, but these sessions are not broadcast to the public (and some broadcasts from the plenary sessions of the Legislative Chamber are even deleted), and journalists, despite requests, are not invited to them.

According to the changes, the spending of ministries, committees, agencies and other government bodies will additionally rise by 9.98 trillion soums (or 775.8 million US dollars) - from 255.4 trillion to 265.4 trillion soums.

An additional 2.43 trillion soums (a total of 11.98 trillion soums) have been contributed for spending related to increasing salaries, pensions, benefits, and tariffs for certain types of services provided by budget organizations.

Ahadbek Khaidarov reported that government spending has additionally rised due to:

  • transfers to the Fund for Financing Educational Loans — by 841 billion soums;
  • free distribution of inhalation medications for the treatment of allergic and secondary immunodeficiency diseases of patients included in the Unified Register of Social Protection — by 30 billion soums;
  • development of culture and art, strengthening the material and technical base, as well as material incentives for the central office and regional divisions of the Ministry of Culture — by 100 billion soums;
  • solution of the most pressing infrastructure issues in mahallas — by 1.344 billion soums.

According to him, by the end of the year it is planned to optimize spending worth of 1 trillion soums by reducing vacant positions and ineffective or duplicate staff units in budgetary organizations. At the end of October, the president reduced the staff of management and production personnel of ministries and departments by 5.2%.

2 trillion soums of savings are expected due to a revision of the criteria for determining low-income families and the redistribution of child benefits and financial assistance based on the principles of social justice.

Savings worth of 1.7 trillion soums from the funds contributed to ministries and departments for development this year are also planned.

At the expense of the residual funds of targeted state funds at the beginning of the year and an rise in the revenue forecast, it is expected to optimize transfers from the republican budget to some funds worth of about 260 billion soums.

It is planned to redistribute the saved 4.1 trillion soums for additional spending in the above-mentioned areas.

According to the Cabinet of Ministers resolution of March 14 (not publicly available), funds worth of 4.373 billion soums, provided in local budgets for the construction and refurbishment of kindergartens and schools as part of the social production infrastructure development program, were transferred to the republican budget.

In addition, clarifications are being made to the indicators of targeted state funds and the Reconstruction and Development Fund (FRDU, the country's sovereign fund).

The balance of funds of targeted state funds at the beginning of the year stood at 12.84 trillion soums (under the current law, 11.5 trillion soums were expected), revenues are 64.77 trillion soums (65.25 trillion soums), transfers from the state budget are 34.06 trillion soums (32.19 trillion soums), spending are 96.69 trillion soums (96.1 trillion soums).

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