OREANDA-NEWS. November 18, 2014. National companies block access of private business to public funds, Finance Vice Minister of Kazakhstan Ruslan Dalenov said.

According to him, the state itself must create the conditions for business, not compete with it.

"More than 850 companies, which received 25 billion tenge without competition from the state budget in the form of state task, state and social order in 2013, are defined for implementation during the second wave (of privatization). That is, private business could not be in a competitive environment, it was not even granted that right. The duty of the state is to create conditions for business, not compete with it. Today, we believe that organizations operating in a competitive environment should not get selective support of the state, as state-owned enterprises receive today. This not only creates unequal conditions for competition, but produces inefficient expenditure of public funds," R. Dalenov said during the VI Economic Forum of national business "Expert-200-Kazakhstan".

According to him, today the number of companies operating in the country is 226 thousand "and a little more". "Of course, there are much more, but we are referring to those who donate a minimum tax reporting or have an active bank account," Vice Minister of Finance said.

He added that out of those 226 thousand around 6000 companies are state-owned in the form of state enterprises, joint stock companies or limited partnerships which have a share of the state.

"From the point of view of macroeconomic data, it would seem not many, but from the perspective of individual enterprises, especially small and medium-sized businesses, it is an excessive amount, because if we add to these 6 thousand public enterprises indirect participation through state holdings, the number will reach about 9000. And these companies operate mainly in the same industries and in the same markets as private enterprises. At the same time they receive a state order and state tasks blocking access of private business to public funds," Vice Minister said.

During the second wave of privatization, some of the objects are sold 25 times more expensive than the starting price.

He recalled that 313 projects are planned to be implemented in 2014.

"As of yesterday's date 169 objects are marketed by "privatization counter", of those 92 have been implemented, including 4 republican property, 38 communal, 37 SEC, 13 holdings. The offer price was 6.9 billion tenge, this starting price was 5.4 billion tenge, there is some growth. Republican budget was 326 million tenge, the local - 390 million, holdings - 3.6 billion tenge, state assets and SEC - 2.6 billion tenge," Vice Minister summed up.