One day after appointing a new prime minister, Kazakhstan President Kassym-Jomart Tokayev on February 7 chaired an extended meeting of the Government. The meeting was attended by the new Prime Minister Olzhas Bektenov, Government ministers, the chairman of the National Bank, governors of the regions, and mayors of the country’s three largest cities of Astana, Almaty, and Shymkent.
In his speech, the head of state said that last year the national economy grew by 5.1%, but there is a lot of work ahead. “We need a new impetus for the Government’s activities. It has a clear target — to increase the economy to $450 billion by 2029. To achieve this goal, the country’s GDP must grow by at least 6% annually. At the same time, it is important that macroeconomic indicators ensure rapid growth in real incomes of our citizens,” the President said.
Tokayev stressed the need to increase the efficiency of budget and tax policies. The systemic problem lies in the way state-budget funds are allocated, which is not aimed at stimulating economic activity, the President said, adding that budget funds are spent on everyday tasks while strategic goals fade into the background. “The Government will have to define clear spending priorities with an emphasis on obtaining maximum economic returns,” Tokayev said.
The President said that a new Tax Code is currently being drafted, which should provide a reasonable balance between creating comfortable conditions for investors and maintaining the required level of budget revenues.
Another priority task is the development of the agro-industrial sector and rational use of water resources. “The problems that hinder the development of the agro-industrial sector are well known. The most acute of them is the chronic underfunding of the sector. Lack of investment leads to wear and tear of agricultural machinery, low yields, and low labor productivity. Therefore, it is necessary to maximize, if possible double the financing of agriculture, attracting not only budget money, but also funds from other sources, including second-tier banks,” the President said.
Tokayev harshly criticized the government for “mistakes and failures” in upgrading the country’s heating, electricity, and water supply systems, and ordered the new Government to fully renovate 19 heating and electricity supply centers in 2024.
Photo: akorda.kz
