Nazarbayev OKs amendments to state budget for 2017-2019
By Kamila Aliyeva
Kazakh leader Nursultan Nazarbayev signed the Law "On amendments to the Law of the Republic of Kazakhstan "On national budget for 2017-2019".
The document is aimed at specification of macro-economic indicators of the country's socio-economic development, Akorda press service informed.
In order to take additional anti-crisis measures, the target transfer from the National Fund was increased to $4.8 billion, while the budget deficit raised to $4.84 billion.
In the budget for 2017-2019 approved in late 2016, the budget deficit for the current year has been planned in the amount of 578.1 billion tenge, or 1.2 percent of GDP.
Kazakhstan continues to withstand challenges related to lower oil prices and slower growth in Russia, China, and Europe. The authorities’ response—targeted fiscal support, exchange rate adjustment, strengthened domestic liquidity management, and structural reforms focusing on the business climate and public administration—has helped stabilize conditions.
Kazakhstan's proven oil reserves as of early 2016 stood at 30 billion barrels, according to the BP Statistical Review of World Energy.
GDP growth slowed to 0.7 percent in 2016, despite continued public investment, budget relaxation and the stabilization of the tenge. This year, the economy remains on course to pick up momentum, helped by higher oil prices, higher oil output from new oil fields and reforms designed to boost foreign direct investment.
Analysts left the country’s 2017 GDP growth forecast unchanged from last month’s 2.1 percent and see the economy accelerating further to a 2.8 percent expansion in 2018.
GDP growth is expected due to higher rates of industrial growth up to 3 percent, manufacturing at the level of 2.6 percent, construction up to 2.6 percent, transport, and storage up to 4 percent.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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