Solid budgetary performance in 2M23

KAZAKHSTAN - In Brief 27 Mar 2023 by Alexander Kudrin

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Kazakhstan’s Ministry of Finance reported that in 2M23, the country’s consolidated budget was in surplus equal to KZT695 bn, i.e., slightly above $1.5bn. This budget incorporates the Republican and local budgets, the National Fund, and state social funds (net of mutual transfers). Revenues of the National fund reached KZT1.027 trln, which was 16.7% of the annual target. Revenues of the Republican budget accounted for KZT3.178 trln (about $6.9bn), i.e., 17.9% of the 2023 annual target. Meanwhile, tax revenues of the Republican budget reached 18.2% of the 2023 plan, while transfers were 17.2% of the target for the year as a whole. The Republican budget assumes a KZT3.2 trln deficit for the entire year. In 2M23, the deficit was only KZT264bn as, in contrast to fast-growing revenues, budgetary spending remained more or less in line with the plan for January-February. In 2M23, the government financed 15.7% of the annually planned expenditures. Overall, it looks as though the Kazakh economy is in good shape, as the country’s tax revenues exceeded expectations for 2M22. One may also expect that the budget deficit in 2023 as a whole may be below the target (unless the government amends them once again, i.e., as it happened in 2022). Evgeny Gavrilenkov Alexander Kudrin