Majilis Speaker criticizes Government for frequent budget adjustments

Majilis Speaker Erlan Koshanov has criticized frequent adjustments to the national budget made by the Government, Kazinform News Agency reports.

The socio-economic development plan does not coincide with the real capabilities of the country's economy, he said.

"As a result, we plan budget expenditures that are unhinged from the real economic situation in the country. Every year, when reviewing the budget, government agencies assure us of balanced state treasury. But at the end of the year, revenues turn out to be insufficient, and we again apply for the National Fund's reserves. This time, the Government convinced us that a targeted transfer is required for the financial stability of the country, i.e., the national budget cannot be formed without the National Fund. This is an ill-thought, unprofessional approach. The Government reports on GDP growth, on positive economic dynamics. In fact, we do not see it," said Koshanov.

The Majilis Speaker stressed that small and medium businesses should be the drivers of economy. In fact, entrepreneurial activity is insignificant.

"We invest in infrastructure projects, in the development of regions, but the state does not get visible results in the form of income. All this indicates incorrect economic planning even for a year, not to mention a long-term outlook. Moreover, the Government has not explained how this issue shall be resolved next year. As I said, we are planning to carry out a targeted transfer from the National Fund. At the same time, today we are ratifying a number of agreements on loans from international banks. As a result, the country's budget is becoming dependent both on the National Fund's resources and external sources," he stressed.

Koshanov also spoke on frequent budget adjustments.

" You have already made 10 adjustments. Of course, adjustments are an important tool for managing public finances. However, the understanding that the budget can be changed during the year worsens the quality of planning the expenditures," he said emphasizing that frequent budget adjustments can negatively impact the long-term planning and reduce predictability of economic policy. 

The Majilis Speaker proposed to completely revise the approaches both to the budget and fiscal policy, and to the entire economic policy of the country.