Kazakhstan Macro: Public finances remain in good shape
Despite recent budgetary amendments, Kazakhstan’s fiscal situation looks stable as the country has enough reserves in the National Fund and runs the 2023 budget with an easily manageable deficit. The authorities have also a theoretical option to increase domestic borrowing in the case of unexpected deterioration of the economic situation. The latter, though, is not on the horizon. On the contrary, the country’s economy performs quite well. A month ago, we referred to the Finance Ministry’s statistics on the combined budget of the Kazakh regions and the steady collection of local taxes, i.e., a sign of reasonably stable economic activity in the country. It looks as though the collection of local taxes was even better in May as in 5M23 the authorities accumulated about 48% of the revised regional budget's annual target. In 5M23, the combined budget of Kazakh regions was in surplus.
Revenue flow has also improved on the republican level. As a result, the deficit of the republican budget was relatively narrow in May. It seems that the government won’t have difficulties financing the amended expenditures and running the budget with a relatively small budget deficit of the same size as before the amendments.
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