Kazakhstan to borrow more than €345 million to cover the budget deficit

The country’s parliament is preparing a relevant draft law

Kazakhstan is going to borrow €345.7 million from the International Bank for Reconstruction and Development. This money will be allocated toward the development of the private sector and the sustainable rebounding of the national economy. The lower house of the parliament Mazhilis has already begun examining the draft law on ratification of the agreement between Kazakhstan and the international entity.

“We are going to borrow €345.7 million from the International Bank for Reconstruction and Development. We need this money to cover the budget deficit and stabilize the social and economic situation in the country,” said Marat Kusainov, head of the Committee on Finance and Budget, while appealing at the parliament meeting.

The official also noted that the borrowing’s time of maturity is 11.5 years, including a 2.5-year grace period.

“The committee is ready to prepare the evaluation of the project. Please support,” Kusainov said.

In 2021, parliament approved the state budget for the years 2022-2024, although it is expected that this year the public costs may increase by 4.9%.

In August, Finance Minister Erulan Zhamaubayev said that the government gained $150.7 million in more revenues, including $37.6 million more in taxes than originally planned.

In order to save money, the cabinet wants to punish those agencies that use public money inefficiently. In 2021, the Accounts Committee for Control over Execution of the Republican Budget proved that more than $864.6 million of public funds were used inefficiently. As the result, the government and the Accounts Committee have developed a set of amendments to the Budget Code and Administrative Violations Code to fight against such incompetence.

Head of the Committee Natalya Godunova believes that the country would benefit more from a one-year budgeting plan instead of a three-year plan.

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