Meeting of the Collegium of the Ministry of National Economy of the RoK
During the meeting of the Collegium of the Ministry of National Economy of Kazakhstan, the Head of the Ministry Alibek Kuantyrov summed up the work done in 2021 and defined the tasks for 2022, the primeminister.kz website reported.
The event was attended by Deputy Prime Minister - Minister of Trade and Integration Bakhyt Sultanov, deputies of Parliament.
The ministry works within 8 main areas of activity aimed at ensuring socio-economic stability.
The key factor was the real sector (3.5%). The services sector also showed a positive trend and grew by 3.9%. Growth was observed in the following industries: information and communication - by 12.9%, trade - by 9.2%, construction - by 7.6%, manufacturing - by 5.5%, electricity - by 4.8%.
At that, investment in fixed assets in 2021 increased by 3.5%.
Foreign trade turnover increased by 11.4% to $101.5 bln.
At the end of 2021, the inflation rate in Kazakhstan was 8.4%.
Prices for food products increased by 9.9%, non-food products - by 8.5%, paid services - by 6.5%.
Last year, as part of the implementation of budget policy, the Ministry provided the necessary regulatory framework for transition to a new lean and responsible budget policy in 2022. Thus, the Budget Code of the RoK regulates countercyclical budgetary rules to limit the growth rate of national budget expenditures and amount of the guaranteed transfer from the National Fund. The Ministry has also taken measures to integrate two extra-budgetary funds into the budget process.
In addition, the MNE of the RoK developed a Concept of Public Finance Management until 2030.
This year, the task is to develop draft laws on the volume of general transfers for the next three years, taking into account all new approaches in inter-budgetary relations.
At the same time, the Ministry began to prepare a new document according to the OECD best practices - the Analytical Report on Fiscal Risks and Sustainability of Public Finances. The document will be submitted along with the draft three-year budget to the Parliament.
A package of amendments to the budget legislation on the introduction of elements of the block budget is also being prepared in implementation of the instructions of the Head of State. Two laws and four resolutions of the Government were adopted in the area of tax policy. The adopted laws provide incentives for production, measures to support the social entrepreneurship entities, measures to simplify the administration and payment of taxes. In general, all measures taken were aimed at stimulating business activity of small and medium-sized businesses.
This year, as part of the tax policy, the work will be aimed at implementing the instructions of the Head of State given last year and at the beginning of this year. The Ministry plans: to introduce a single payment from payroll for micro- and small businesses with a reduction of the total burden from 34% to 20%; revision of tax exemptions for dividends; increase of the rate of payment for digital mining; improvement of taxation of controlled foreign companies; limitation of application of deductions for intangible services provided by affiliates; harmonization of excise tax rates on tobacco products, increasing of excise tax rates on cognac (brandy).
As part of the development of entrepreneurship, a law was passed last year aimed at introducing a new regulatory policy - regulation "from scratch". A single day of reporting by control and oversight bodies has been introduced, as well as the principle of one requirement instead of two - the principle of "1 in 2 out". The prohibition on the requirement of reporting, for which automation will not be provided, has been enshrined.
In 2022, the Ministry is tasked with: creating a register of mandatory requirements; automating state control; switching from inspections to professional control; and analyzing regulatory acts that provide requirements for business.
The Concept of investment policy of the Republic of Kazakhstan and the Methodology for assessing the investment attractiveness of the regions and unified investment standard were developed. Changes on reduction of terms of economic expertise of state investment projects, improvement of assessment of implementation of budget investments were introduced. The goal for 2022 is to attract KZT 19.5 tln. of investment in fixed assets with a level of 18.5% of GDP.
As part of improvement of the legislation and quality of PPP projects, it is planned to review the approach to determining a private partner through direct negotiations. For these projects the possibility of compensation of costs from the budget will be excluded. In order to strengthen the anti-corruption control of PPP projects, it is planned to introduce the principle of openness and transparency in the planning and implementation of projects.
The course to reduce the excessive presence of the state in the economy continues. The Comprehensive Privatization Plan until 2025 includes 721 state-owned enterprises. Execution of the Comprehensive Plan by the end of 2021 is 35%. Thus, today the share of the state in the economy is reduced to 14.6%.
This year, the Ministry of National Economy of the Republic of Kazakhstan is taking steps to develop a concept for reforming the quasi-state sector and updating the Comprehensive Privatization Plan for the five-year period from 2021 to 2025.
As part of the regional development program, work has been done to improve regional policy. Thus, the Ministry of National Economy developed and approved 2 documents within the framework of the new State Planning System. These are the Spatial Development Plan of the Republic of Kazakhstan until 2025 and the National Project "Strong Regions - a Driver of National Development."
These documents are aimed at improving housing and communal conditions, development of housing and communal construction, increasing the transport and transit potential of the country, modernization of the supporting rural settlements, as well as creation of new jobs.
As part of the message of the Head of State to the people of Kazakhstan dated September 1, 2021 a Draft Law "On development of agglomerations" was developed. In September this year, this Draft Law is planned to be submitted to the Majilis of the Parliament of the Republic of Kazakhstan.
In order to improve the quality of life in cities and villages, work has begun to update the joint order of the central government agencies "On Approval of the System of Regional Standards for Human Settlements of the Republic of Kazakhstan."
"Legislative amendments have been adopted on the implementation of the Concept for development of local self-government. These are: introduction of direct elections of rural akims, expanding of independence of Level IV budgets, strengthening of powers of maslikhats. Requirements for the procedure for changing the categories of administrative-territorial units have been improved," said the Head of the MNE at a meeting of the collegium.
Six comprehensive plans for the socio-economic development of North Kazakhstan, Turkestan, Kyzylorda, Atyrau, and Mangistau regions and Ekibastuz city in Pavlodar region were approved. On the instructions of the Head of State, the comprehensive plans for western regions, namely - Atyrau, Mangistau, Aktobe and West Kazakhstan regions - were updated.
Budget loans were issued in the amount of KZT 18.2 bln. for the purchase of housing for 4.3 thou. specialists under "With diploma to the village" Project.
This year KZT 10,2 bln. was allocated for development of mono- and small towns for implementation of 26 projects within the framework of the tasks set for the year. It is planned to create about 500 jobs and modernize 200 km of intracity roads and utility networks.
In order to develop the outskirts of major cities, KZT 26 bln. were allocated for implementation of 32 projects. This will make it possible to build about 600 km of roads and utility networks, as well as three social facilities (school, kindergarten, outpatient clinic).
In addition to the above, new laws will be developed this year aimed at: creation of "Kenes" representative body in rural areas; creation of a new structure of the executive body - "rural district administration" in a pilot mode; creation of local self-government bodies in cities; distinction between the levels of government and local self-government. As part of execution of the instructions of the Head of State, the legislative basis for the election of akims of districts and cities of regional importance will be prepared.
In 2022, a decree will be approved aimed at improving communication between the population and the akims, increasing public confidence in local government, responsibility of local executive bodies, as well as reducing social tensions in the regions.
Regarding tariff policy issues, the growth of regulated utilities services in 2021 was 2.88%. Taking into account all measures taken to curb growth and reduce tariffs, the actual contribution to inflation from tariffs on regulated utilities services for 2021 was 0.22%.
As part of improving the tariff policy in the areas of natural monopolies, the following work was done this year: a moratorium on increasing utility tariffs for the population for 180 days was introduced; previously approved tariffs were cancelled or adjusted until December 2021 (these measures will allow achieving an economic effect for the population during the moratorium in the amount of KZT 3.2 bln.); measures were taken with regard to several companies that provide services in the area of access roads to reduce tariffs. These measures made it possible to reduce the impact on cost of steam coal and on prices of socially important goods. Work was carried out to make a separate group - "socially vulnerable consumers" - for gas supply services.
In 2022, as part of the tariff policy, the following will be ensured: improvement of the mechanism of housing assistance in payment of utility bills to protect consumers most sensitive to the price of utility services; introduction of the practice of making a separate group from the needy category of the population when paying utility bills; introduction of a mechanism to change the tariff in case of taking over the balance of electricity networks by amending the Law "On Natural Monopolies"; introduction of a differentiated tariff on the volume of water supply consumption in order to form a careful attitude to water resources; increasing the transparency of the activities of natural monopolies.
A set of measures to control and reduce inflation for 2022-2024 has been developed, providing for an increase in the volume of production, storage and logistics of goods, retail trade of goods, control of pricing, anti-monopoly and foreign trade regulation.
A Draft Program to increase the population's income has been developed with measures aimed at a real improvement in the quality of life of the population.