BAKU, Azerbaijan, August 29. Kazakhstan's
Government has reviewed a draft law on the republican budget for
2027-2029, with total spending planned at 30.2 trillion tenge
(about $63.6 billion) in 2027.
This was announced by the press service of the Kazakh
government, following a cabinet meeting chaired by Prime Minister
Olzhas Bektanov and dedicated to the country’s socioeconomic
development forecast.
According to the information, the draft budget was presented by
Finance Minister Madi Takiyev and prepared based on the country's
socio-economic development forecast.
Republican budget revenues are projected at 25.6 trillion tenge
($53.9 billion) in 2027, equivalent to 12.9% of GDP.
The guaranteed transfer from the National Fund is set at 2.4
trillion tenge ($5.1 billion), while the targeted transfer is
planned at 2 trillion tenge ($4.2 billion). The targeted transfer
will be used exclusively to finance critical facilities and
infrastructure projects of national importance.
The budget deficit is projected at 2.3% of GDP in 2027. Total
republican budget expenditures will amount to 30.2 trillion tenge,
up by 2.5 trillion tenge ($5.3 billion) compared with the current
year's plan.
"An important feature of the budget drafting process was not
simply to ensure an increase in spending, but to improve the return
on every tenge of budget funds, directing resources primarily
toward fulfilling state obligations, developing the economy and
regions, and building human capital," Takiyev said.
He added that spending on administrative government bodies was
planned based on the principles of efficiency and effectiveness,
avoiding unjustified increases in administrative costs while
maintaining the balance of the republican budget.
The social sector remains the key budget priority. A total of
10.5 trillion tenge ($22.1 billion), or 34.9% of total
expenditures, is allocated to social spending in 2027.
The draft budget takes into account the indexation of social
payments and changes in the number of recipients. An additional 739
billion tenge ($1.6 billion) is allocated to maintain the necessary
level of social support.
A total of 3.8 trillion tenge ($8 billion) is allocated to the
real sector of the economy, accounting for 12.9% of total
expenditures and representing an increase of 507 billion tenge
($1.1 billion) from the current year's plan.
The increase is linked to the continuation of major
infrastructure projects. Taking into account development budgets of
local executive bodies, total support for the real sector will
reach about 7 trillion tenge ($14.7 billion).
Funding for the security and defense sector is planned at 3.3
trillion tenge ($7 billion), an increase of 257 billion tenge ($541
million) compared with the current plan.
Meanwhile, 787 billion tenge ($1.7 billion) is allocated for the
operation of administrative government bodies. The optimization of
spending was carried out without creating risks to the performance
of their assigned functions.
The draft law also incorporates systemic changes related to
institutional reforms, including financing for the activities of
the Kurultai and the Kazakhstan People's Council.
Overall, the proposed budget combines increased spending on
social commitments and infrastructure with measures aimed at
improving spending efficiency and maintaining fiscal stability.
According to Trend's analysis, the budget structure shows that the
government is continuing to rely on public investment to support
economic growth, particularly through infrastructure and the real
sector. This approach is likely to have a wider economic impact by
supporting construction, transport, utilities and industrial
capacity, while also improving the conditions for private
investment. The emphasis on social spending, meanwhile, indicates
that maintaining household incomes and social stability remains an
important part of the government's economic policy.
At the same time, the budget highlights the challenge of
financing ambitious development plans while maintaining fiscal
stability. The continued use of National Fund transfers provides
the government with resources for major projects, but also shows
that oil-related revenues remain an important component of public
finances. The focus on improving the return on budget spending and
limiting administrative costs therefore suggests an effort to
ensure that higher public expenditure translates into longer-term
economic capacity rather than simply increasing current
consumption. The effectiveness of this approach will largely depend
on whether infrastructure investment and support for the real
sector generate stronger non-oil growth and gradually expand the
government's domestic revenue base.
