Kazakhstan targets budget deficit reduction to 0.4% of GDP by 2029 - PM

Photo: Government of Kazakhstan

BAKU, Azerbaijan, October 14. Kazakhstan's government aims to reduce the republican budget deficit to 0.4% of GDP by 2029, down from a projected 2.3% in 2027, Prime Minister Olzhas Bektenov said.

This was reflected in the statement published by the government of Kazakhstan.

Speaking at a meeting of the Kurultai in response to a question from MP Natalia Godunova about the projected budget deficit for 2027, Bektenov said the government remained committed to strengthening public finances and reducing the budget's dependence on borrowing and transfers.

He noted that the budget is prepared annually for three years, with the parameters for the second and third years updated to reflect current macroeconomic forecasts, external economic conditions, and other factors affecting government revenue and expenditure. This approach allows the government to set medium-term fiscal policy priorities while accounting for changes in economic conditions.

“Reducing the budget deficit is one of the government's main priorities. It was, is, and will remain so. We always aim to narrow the gap between budget revenues and expenditures as much as possible. There are two ways to do this: increase budget revenues and optimize spending. We are working in both areas,” Bektenov said.

According to Kazakhstan's socioeconomic development forecast and republican budget parameters for 2027–2029, the budget deficit is projected at 4.6 trillion tenge ($10.28 billion), or 2.3% of GDP, in 2027. By 2029, it is expected to fall to 1 trillion tenge ($2.23 billion), or 0.4% of GDP.

To reduce the deficit and ensure the long-term sustainability of public finances, the government plans a range of measures. These include strengthening the revenue base through economic growth, broadening the tax base, implementing tax reform, and improving tax and customs administration.

To improve spending efficiency, the government will conduct a comprehensive review of existing budget programs to eliminate inefficient public expenditure.

The government will also continue to adhere to established budget constraints, take a measured approach to the use of National Fund resources, and account for the cost of government borrowing.