Kazakhstan’s 2024 Budget Deficit Hits $6.9 Billion

Kazakhstan’s budget deficit amounted to 3.6 trillion tenge (US$6.9 billion) in 2024, representing 2.7% of the country’s GDP, Finance Minister Madi Takiyev reported during a plenary session of the Mazhilis, the lower house of Parliament, on June 18.

According to the Mazhilis press service, preliminary figures indicate real GDP growth of 4.8%. Budget revenues approached 20 trillion tenge (US$38.5 billion), or 98% of the planned figure, while expenditures stood at 23.6 trillion tenge (US$45.4 billion), The Caspian Post reports citing The Astana Times.

“The government has fulfilled all social obligations, including 7.1 trillion tenge (US$13.6 billion) allocated to support the regions, and 8.8 trillion tenge (US$16.9 billion) to the social sphere,” he said.

Additional allocations from the government reserve were made for flood recovery, modernization of heating infrastructure, and the national rural healthcare project.

The Finance and Budget Committee drew attention to the growth of government debt - over 10 years, it has grown from 8.7 trillion tenge (US$16.7 billion) to 30.1 trillion tenge (US$57.9 billion). While the debt-to-GDP ratio of 22.4% is considered acceptable, experts warned of the illusion of sustainability.

“If earlier the expenditure side of the budget traditionally raised the most questions, this year, unfortunately, they fall on the weak planning and execution of the revenue side of the budget. And as a result - a sharp increase in withdrawals from the National Fund and the volume of external borrowing,” said Mazhilis Chairman Yerlan Koshanov.

The final approval of the 2024 budget execution report will take place at a joint session of both houses of Parliament.