Natalya Godunova, the head of Kazakhstan’s Counting Committee has suggested rolling back three-year budget planning due to its low efficacy.
While speaking to the parliament, Ms. Godunova said that the practice of three-year budget planning has never operated in full. The government puts a lot of resources into the preparation of each three-year budget plan but then it is forced to revise and adjust that plan each year.
“We do not even glimpse to the future and often we have to remove some items of cost out of the budget even though they had been approved before,” Godunova said.
As a result, some projects may have lost financing long before they are completed.
“I believe that this is the right time to think about it once again. We need to resume annual budget planning. Of course, all obligations to businesses and investors must be met in full,” added the official.
According to the head of the Counting Committee, there are several arguments in favor of the one-year budget planning.
“First of all, we can’t prepare a detailed medium-term plan because of uncertainty in the global economy. Second, a one-year budget is more flexible, it is more suitable for coping with fast-changing conjuncture – this is not the case for a three-year budget,” Godunova said.
Each ministry must focus on a long-term horizon in planning by considering its priorities and requirements for long-term sustainability.
In November 2021, Kazakhstan’s parliament adopted the three-year budget for 2022-2024. Under this budget the public costs this year must be 4.9% higher than they were in the course of the past year.