Government allocates Special Reserve funds to boost home demand
Head of the Government Karim Massimov held this week a regular meeting of the Cabinet in a videoconference mode. Prior to discussing the agenda, the PM drew the participants’ attention to some important issues. Thus, the Ministry of Culture and Sport and the National Olympic Committee were charged to work out issues of participation of Kazakhstani athletes in Rio 2016 Games and search for funds to purchase modern anti-doping laboratories.
Minister of National Economy Kuandyk Bishimbayev presented an Economic Growth Boosting and Employment Plan for 2016-2017 developed at the Presidential instruction. The Plan contains a package of measures aimed at:
1) Increasing the volume of oil extraction and processing, coal extraction, delivery of iron ore of Sokolov-Sarybay Mining Plant to China and Russia, support of SMEs and employment;
2) Increasing efficiency of utilization of the funds under Nurly Zhol Program and Additional Anti-Crisis Measures Plan in 2016;
3) Acceleration of implementation of infrastructure projects under Nurly Zhol Program and investment projects in priority sectors of economy.
According to the Minister, 91.5 bln tenge of the Government's Special Reserve funds will be spent on boosting home demand. 30 bln tenge of this sum will be allocated as a transfer to the regions under the Business Road Map 2020 program. These funds will be used for the repair of housing and utilities, infrastructure and landscaping work in rural settlements and small towns. 23.9 bln tenge will be spent on maintaining infrastructure of the projects under the Business Road Map-2020 program. 20 bln tenge will be spent on implementation of the project on provision of rural settlements with a broad-band access to internet.
“With the consideration of these measures, we expect that in June-July 2016, our economy will shift to a “positive zone’, while planned results are predicted for late 2016,” said the Minister.
The Minister predicts that GDP growth in 2016 will make 0.5%.
Minister of Investments and Development Asset Issekeshev reported about implementation of the State Industrialization Program.
“898 projects were put into operation under Industrialization Map within 6 years, including 128 projects commissioned in 2015. 80% are new productions and 20% of facilities were modernized and expanded. One third of GDP growth in 2015 was ensured namely by these enterprises,” he said.
The new enterprises manufacture more than 500 types of products which hadn’t been produced in Kazakhstan before. 120 projects are set to be commissioned this year. In whole, the Industrialization Program played a stabilizing role in economy.
According to the Minister, Kazakhstan exports its goods to 117 countries. The top export destinations are Italy, China, the Netherlands, Russia, France, Switzerland, Romania, Turkey, Greece and Spain," Minister Issekeshev said and stressed that Kazakhstan's turnover decreased by 37% ($76 billion) in 2015, compared to 2014. "This is mainly due to falling oil prices," he added.
Prime Minister Karim Massimov paid a working visit to Almaty region. The PM determined 4 main areas of work for Almaty region during his working trip to Taldykorgan today.
Thus, according to him, the top-priority issue is to expand the area of irrigated lands. “If needed, we can adopt a special program and allocate money, because the lands of Almaty region have great potential,” he said. Besides, in his opinion, special attention must be given to enlarging areas of lands for corn and beet sugar planting. K.Massimov pointed out also the importance of reconstruction of Aksu Sugar Factory.
According to the National Bank Chairman, Retirement assets of the Unified Pension Fund will be channeled into debt securities of quasi-public sector in 2016. At the Tuesday session of the Kazakh Government Mr. Akishev revealed that retirement assets of the Unified Pension Fund equal to 400 billion tenge will be invested into debt securities of quasi-public sector this year.
“As of June 17 retirement assets of the fund equal to 145 billion tenge have been invested into obligations of quasi-public organizations. Rational and effective use of our financial resources is an important element of anti-crisis measures assumed in Kazakhstan," Akishev said.