OREANDA-NEWS. January 05, 2016. One of the main factors contributing to exceeding the plan income to the budget is the adjustment of the rate of tenge. This has been announced by Kazakh Finance Minister Bakhyt Sultanov at today’s press conference in the CCS.

"Today we can say that the income part of the republican budget is made of 100%, and we already see performance above target. Of course, a major factor of the over-fulfillment of budget revenues is correction rate of tenge in connection with the transition to a free floating regime and, above all, it is according to such taxes as corporate income tax, VAT and customs export duty. This gives us a good start at the beginning of financing next year," the minister said.

"The agreement with the Asian Development Bank recently ratified by the Parliament also gives a good start give under which the bank has provided 1 billion tenge according to a special program to support the financing of the budget deficit. It also gives us the opportunity to finance without any difficulty earlier this year and to ensure that all social obligations in full and on time," Bakhyt Sultanov said.

Fulfillment of the plan of revenues to the local budget is observed in the regions also, the minister said. According to him, it happened due to the implementation of programs "Nurly Zhol", "Business Road Map", "Roadmap employment".

"All of them were aimed not only to maintain, but also to create new permanent jobs. This automatically affects the income of the local budget as the main item of the income of the local budget are payroll taxes and property," he explained.

National Holdings earned 138 billion tenge from the transfer to the competitive environment (privatization) of its 43 facilities. "To date, 235 of our assets in the amount of 78 billion tenge have been implemented, while the national budget rescued 7.6 billion tenge, 20 billion tenge was received by the local budgets through the sale of 107 objects of communal property. 138 billion tenge were received by national holdings from the transmission of 43 sites and national companies in a competitive environment – 3 billion tenge," he informed.

Finance Minister stressed that the Government at the last meeting approved the top 65 new companies with a book value of more than 5 billion tenge, including 13 objects of the republican property, the rest – holdings. Special work will be carried out by international consultants.

"A road map, a selling tool will be developed for each object. For this purpose, from the beginning of next year a special project office at the Government will be created, all the parties concerned in the work will be involved," Bakhyt Sultanov said.  

The minister recalled that the privatization of large companies – an opportunity to attract investment for modernization and expansion of production, to expand markets for products, to maintain and increase jobs. Sale of the companies of "medium-sized businesses" will provide entrepreneurs business, having access to the state order. For the population – it is a decision on employment, the opportunity to generate additional revenue in the form of dividends (purchase of shares), higher quality, and expansion of the range of services. A developed competitive market will reduce the price of services.

At the same time, the benefits of the state – the creation of conditions for the functioning of an efficient market economy, increase of investment activity, the formation of a broad middle class, reduction of the expenditure side of the budget. The government will also ensure the preservation of the activities of social facilities, which will remain in state ownership, but will be transferred to the management of businesses through public-private partnerships.