28 August, 2013 00:00

Prime Minister urges Cabinet to ensure quality budget execution

Today, the Government meeting chaired by Prime Minister Serik Akhmetov has considered and approved the draft budget for the coming three-year period (2014-2016) and the forecast of social and economic development of the country for 2014-2018.

"The Head of State approved general approaches to the formation of a plan of socio-economic development and the draft national budget," Akhmetov said. He stressed the need to monitor the expenditure of public funds, as well as the responsibility for their disbursement.

Minister of Economy and Budget Planning Yerbolat Dossayev delivered a keynote speech at the meeting. He noted the orientation of the forecast parameters to the execution of the development programs of the "Strategy 2020" and objectives outlined by the President in "Kazakhstan 2050" Strategy.

"The real growth of Kazakhstan's economy for a 5-year period from 2014 to 2018 is projected at 6-7.1%," the minister said.

According to him, economic growth will be achieved through increasing investment in industrial and infrastructure projects, beginning of the Kashagan oil field development and the growth of consumption.

"Domestic demand in the mentioned period will grow at an average of 7.5%," he stressed.

According to the forecast of the Ministry of Economy, the nominal GDP will increase from 38.6 trillion tenge in 2014 to 65.9 trillion tenge in 2018. Per capita GDP in 2014 will be 14.6 thousand dollars, and will grow to 24 thousand dollars in 2018.

Among the priorities of socio-economic policy in the medium term, the minister named the macroeconomic and financial stability, improvement of the efficiency and competitiveness of the economy, social modernization, regional development, formation of an effective system of governance, development of international integration and cooperation.

Dossayev also submitted a number of budget documents developed on the basis of the macroeconomic forecast of the national budget for 2014-2016. The draft law "On republican budget for 2014-2016" provides for further implementation of the state program of forced industrial innovative development, Business Roadmap, Employment Roadmap, "Agribusiness 2020".

The Minister also informed about the provisions of the budget bills "On guaranteed transfer from the National Fund for 2014 - 2016", "On the size of transfers between the republican and oblast budgets, budgets of the city of republican status, capital for 2014-2016", "On amendments and additions to some legislative acts of Kazakhstan on the improvement of the budgetary legislation", "On amendments and additions to some legislative acts of Kazakhstan on the issues of taxation".

According to Dossayev, "it is proposed to introduce responsibility of the head of the administrator of the budget programs for failure to reach the results of budget programs with the full disbursement of the budget funds. It also establishes the responsibility of governors in the case of the allocation of funds from the local budget below the minimum amount set by law on transfers of a general nature."

At the end of the discussion, the Prime Minister noted that "the three-year budget and the 2014 budget has been formed on the basis of the strategic plans of ministries, state agencies," and stressed that the basis of the budgets was the President’s instructions given in his state-of-the-nation address, the program documents and "Kazakhstan 2050" Strategy.

The Prime Minister urged to ensure quality budget execution. He instructed the Prime Minister’s Chancellery together with the Ministry of Economy to prepare for signing and submit the bills in the prescribed manner to the Parliament and the draft decree of the President of Kazakhstan – to the Administration of the President.

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