Dossayev: Parameters of 2014-2016 national budget change due to oil price growth and adjustment of tenge rate

ASTANA. KAZINFORM - The parameters of the national budget for 2014-2016 have changed due to the increased average oil price and the adjustment of the tenge against the U.S. dollar, Minister of Economy and Budget Planning Yerbolat Dossayev said at the plenary session of the Majilis of the Kazakhstan Parliament.

"According to forecasts by international organizations, the average oil price in 2014 will be at the level of 105.1 dollars per barrel, this is a consensus forecast. Given the strengthening of the U.S. dollar, the average price was set at 95 dollars per barrel after the refinement of the forecast for 2014. Earlier, the oil price was set at the level of 90 dollars per barrel," he said.

"This year, the main factors of economic growth in Kazakhstan will be the increase in domestic demand and improvement of the external environment for exports," Dossayev added.

According to the adjusted parameters of the national budget, revenues for 2014 will amount to 6.2 trillion tenge or increase by 432.5 billion tenge compared to the approved budget (5.7 trillion tenge). Budget income (excluding transfers) was adjusted upward by 331.7 billion tenge against the approved plan of 4.02 trillion, and will amount to 4.3 trillion tenge, according to the website of the Prime Minister.

Budget expenditures will amount to 7.1 trillion tenge, increasing by 408.7 billion tenge compared to the approved forecast.

In general, the additional funds will be spent for the implementation of the President's instructions set in his state-of-the-nation address of January 17 this year, as well as at the enlarged meeting of the Government of Kazakhstan of 14 February this year.

In the current year, real GDP growth is estimated at the previous level of 6%. The volume of nominal GDP in 2014 will reach 39.6 trillion tenge, which exceeds the nominal GDP approved in August by 999.3 billion," he said.

Thus, according to forecasts of the Ministry of Economy and Budget Planning, exports of goods will amount to 86.3 billion U.S. dollars, up 1.6 billion dollars from the previously approved forecast. Imports will make 52.2 billion U.S. dollars, or 6.4 billion lower than earlier forecast.

Inflation will remain in the forecast range of 6-8 % by the end of the year.