Minister Takiyev explains why state budget revenues declined in 2024

At today's session of the Majilis, Finance Minister Madi Takiyev explained the reasons for a 2 trillion tenge decrease in the national budget's own revenues from the approved plan for 2024 , Kazinform News Agency reports.

According to him, revenues dropped from 16 trillion 124 billion tenge to 14 trillion 124 billion tenge due to 3.1 trillion tenge decrease in tax revenues and the rise in non-tax revenues by 1.1 trillion tenge.

The head of the Ministry of Finance noted that the following factors became the reasons for the decrease in tax revenues:

- Oil production decline by 5.1 million tons (from 95.4 million to 90.3 million tons) due to postponing the Future Growth Project project (FGP) at the TCO to 2025. This led to a decrease in revenues from the crude oil export customs duties by 200 billion tenge.

- An increase in the VAT refunds due to the year 2023 debt repayment to the amount of 594 billion tenge. According to Takiyev, Kazakhstan has refunded 3 times more VAT from the budget than in the same period last year.

- 6.4% fall in the volume of imports from the third countries (in 10 months of 2024), which led to a decrease in the republican budget revenues by 216 billion tenge.

"Unstable external factors, including fluctuations in the global prices for key export goods negatively affected the republican budget revenues. For example, in the first quarter of this year, zinc prices dropped by 21.7%, aluminum prices fell by 8.3%, copper prizes went down by 5.4%, and lead prices decreased by 3%," Madi Takiyev said.

The Minister also said that due to the geopolitical situation, major companies experience higher logistics cost, which negatively affected their profitability, and tax revenues decreased by around 350 billion tenge.