The document summarizes Kazakhstan's Ministry of Finance activities related to improving various economic indicators from 2008-2013. Key points include: - Reducing state debt to an acceptable 13.2% of GDP and ensuring financing of the republican budget deficit. - Increasing assets of the National Fund of Kazakhstan to 36.2% of GDP by 2013 to reach the target of 30% of GDP by 2020. - Providing 121.8 billion tenge in loans from the republican budget in 2013 to support various economic sectors. - Improving bankruptcy procedures and rehabilitation of competitive enterprises to preserve over 17,000 jobs. - Enhancing treasury services and managing state property more efficiently through

1. Ministry of Finance
and International Ratings
148 countries)
155 countries)
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2. Indicator «Taxation» of
«Doing Business» rating
18
26
39
61
2008
Rate – 28,6% (-12,5%)
52
Number of payments– 7 (-2)
Time – 188 hours (-82 hours)
2009
2010
2011
2012
2013
Positive result is achieved by:
Amendments to Tax Code
TF
Start of Web applications «Taxpayer cabinet»
Tax form reduction
Introduction of Tax account processing system (TAPS)
establishment of data utilization center (DUC)
Ticket system introduction into DUC
E-services expansion
2
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3. Global Competitiveness Index «State debt»
2007
2008
2009
2010
2011
2012
2013
3
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4. State debt to GDP, in %
11 %
38 %
13 %
107 %
91 %
171 %
22 %
237 %
4
Note: data for October, 2012.
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4

5. INDICATOR «SETTLEMENT OF INABILITY TO PAY» of
«DOING BUSINESS» RAITING
54
49
55
55
54
54 places
from 180
countries
100
Term – 1,5 years
Expenditures – 15 %
Debt recovery– 43,2 % (+2,6)
2008
2009
2010
2011
2012
2013
Improvement of a position is reached by a way:
accelerated procedure introduction of and of rehabilitation procedure improvement
in administrative barriers reduction
creditors rights expansions
introduction of cameral control on identification of the deliberate and false bankruptcy
5
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6. Budget transparency progress
Index of budge transparency (OBI) is made by the International budgetary partnership
OBI purpose – assessment of public availability of budgetary information, reflection of degree of
involvement of society into the budget process and its social orientation
3
48
35
places
among
CIS
38

Done work:
•
publication of civil budget in
the format clear, intelligible
segment of the people
• explanations in
info
graphic look
•
feedback:
forum, twitter, Facebook
2008

2010
2012
Further work on increase of budget transparency:
• draft budget publication for a public review
• publication of frequently asked questions at report discussion in Parliament
• forum development
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6

7. SQI EFF indicator
«Customs duties burden»
77
106
107
75
102
2008
2009
2010
2011
2012
Positive result will reach as a result:
 reductions of the list of obligatory documents to 3 (three) main documents
 introduction and AEB institute improvement
 reductions of terms of registration due to use of automated RMCS
 introductions of integrated customs control on border
 abolition of institute of licensing in activity of customs authorities
7
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8. Indicator «Ratio of auditing and reporting standards»
Planned measures on
indicator improvement:
2009
2011
2013
Done work:
legislation change according to recommendations within
ROSC
creation of Depositary of financial statements for the
organizations of public interest
introduction and distribution of IFRS and MSA, IFRS for
PMSB

changes of system of
regulation of auditor activity
on the principles of
requirements of the
International federation of
accountants, European
directives

introduction of selfregulation and cancellation of
licensing of auditor activity
Training, seminars, round tables, the approval of the
National standard of financial statements for support of
small business
8
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9. Strategic objectives:
1111
1
Achievements
We reached :
STATE DEBT DEDUCTION AT ACCEPTABLE LEVEL
RK NATIONAL FUND NCREMENTS OF ASSETS
ENSURING LOAN GRANTING FROM THE REPUBLICAN BUDGET
EFFICIENCY OF BANKRUPTCY AND IMPROVEMENT
IMPROVEMENT OF QUALITY OF TREASURY SERVICE
MANAGEMENT OF STATE PROPERTY
INTERNATIONAL COOPERATION AND INTERNATIONAL LEGAL ACTIVITY
9
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10. STATE DEBT DEDUCTION AT ACCEPTABLE LEVEL
Direction:
Internal
debt of GRK
0,8 trillion
tenge
Debt of LG
and NB
0,02 trillion
tenge
RB Deficiency
2013 – 2,1% to GDP
4,4
State debt / GDP
Trillion
tenge
in % GDP
Internal debt
of GRK
3,6 trillion
tenge
13,2%
Indicator of state debt is in a zone of admissible
values. State debt limit for the HARDWARE countries –
50% GDP EU – 60%GDP.
Debt burden (service/income):
Fact
9,7% Limit 10-15%
GS Issue for 2013 –
982,5 billion tenge
GS Buyers in 2013:
NPF - 512,9 billion tenge
indexed to inflation – 240,9 billion
tenge
short-term – 6,3 billion tenge
medium-term – 37,7 billion tenge
long-term – 228,0 billion tenge
Banks – 227,5 billion tenge
short-term – 85,8 billion tenge
medium-term – 71,5 billion tenge
long-term – 70,3 billion tenge .
Other - 242,1 billion tenge
indexed to inflation – 151,0 billion
tenge
short-term – 16,8 billion tenge
medium-term – 35,0 billion tenge
long-term – 39,3 billion tenge
10
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11. Direction:
STATE DEBT DEDUCTION AT ACCEPTABLE LEVEL
Task
Realization mechanism
Domestic market
activisztion
GS integration by
repeated issue
Effect for economy
Expenses reduction on
loans
Trade activization in
domestic market
Financing of deficiency of
republican budget in
full
Issue of eurobonds in
capital foreign markets
Pressure decrease on
liquidity of domestic
market
Standard creation for
the Kazakhstan
companies
11
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12. Direction:
FORMATION AND USE OF ASSETS OF NATIONAL FUND
OF THE REPUBLIC OF KAZAKHSTAN
Relation of the RK National fund to GDP for 2010-2013.
NF
26,5
%
2010
NF
29,3
%
2011
NF
34,7
%
2012
NF
36,2
2013
%
value
The purpose – finishing of assets of RK National fund by 2020 to level not less than 30% to GDP
Funds of the National Fund of the Republic of Kazakhstan
(2001-2013), billion tenge
15000
12,466.8
Index
2013,
billion tenge
5000
189.8
3 432,3
Use
The rest on
01.01.2014г.
(operational data,
without taking into
account on
invested income)
10000
Revenue
1 412,0
12 466,8
0
2001
2005
2009
12
2013
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13. LOAN GRANTED FROM THE REPUBLICAN BUDGET IN 2013
121,8
billion tenge
Local Governments
60,0
billion tenge
61,8
billion tenge
Loans –
117,2
billion tenge
Support of subjects of agrarian and industrial
complex
- carrying out spring field and harvest
works;
working capital financing
purchase of agricultural production
refinancing of obligations for the loans
attracted on purchase of agricultural
production;
- microcredit organizations
- Business in monotowns
"With the diploma to the village"
Microcredit within the
Employment 2020 Program
Construction and housing
acquisition within the Affordable
Housing 2020 Program
Credit portfolio
on 01.01.2014 –
464,3 billion tenge
13
13
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14. RESTORATION OF SOLVENCY OF THE COMPETITIVE ENTERPRISES
(IMPROVEMENT OF THE LARGE ENTERPRISES)
Direction:
The program of post-crisis restoration
(improvement of competitive enterprises) for
2011-2016 is approved by the Resolution of
GRK dated March 4, 2011 No. 225.
Reception of applications for participation in the
Program is finished on April 1, 2013.
EFFECT by the end of 2016:
350
keep 17,7 thousand workplaces,
tcreate 5,5 thousand workplaces
satisfy 160,2 billion tenge of debt or
for 51%, thereby to improve quality of
assets of second –tier- bank
63 companies are recognized by
participants of the Program, practically from all
regions of Kazakhstan and representing a wide
range of branches of economy.
Subsidies from RB:
300
It is paid:
250
2011-2013 – 18 billion tenge
It is put:
200
2014-2016 – 57,6 billion tenge
The output of products, the
performed works and services:
150
100
- for the beginning of implementation of the plan
of rehabilitation of 253 billion tenge
50
0
- for the end of implementation of the Program –
397 billion tenge
for the begining
of subsidies
2013
2014
2015
2016
14
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15. BANKRUPTCY EFFICIENCY
Direction:
It is involved
in rehabilitation in
2013
Repayment coefficient
of creditors requirements
9
8
186
The new Law in the
sphere of rehabilitation
and bankruptcy
is directed on:

preservation and
business development
4

It is liquidated in
2013
prevention of a
conclusion of the property
received by an illegal way

2011
2012
2013
–
54 places
(2012 – 55)
1 among CIS
2013
increase of collection
of debt by the creditor

decrease in expenses
for carrying out procedure
of bankruptcy
15
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16. Direction:
IMPROVEMENT OF QUALITY OF TREASURY SERVICE
16
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17. Direction:
STATE PROPERTY MANAGEMENT
Total in
2013
PI municipal
PI republican
25 702
subjects
3 436
15 620
SE republican
289
SE municipal
LLP
505
5 647
JSC
205
In comparison with 2010 the number of subjects of quasi-public sector
and public institutions grew on 1358, including:
•
-
Subjects of republican property + 268
public institutions + 287
state enterprises - 40
Joint stock company, LLP with state
participation + 21
•
-
Subjects of municipal property + 1090
public institutions + 451
state enterprises + 368
Joint stock company, LLP with state
participation + 271
17
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18. IMPLEMENTATION OF DECISIONS OF THE COMMISSION ON QUESTIONS OF
OPTIMIZATION OF SUBJECTS OF QUASI-PUBLIC SECTOR AND OBJECTS OF
THE STATE REAL ESTATE
FIRST STAGE of PRIVATIZATION (2013-2014)
It is recommended to privatize
Republican property:
Municipal property:
10 subjects of quasi-public sector
37,5 thousand sq.m. of the excessive areas
151 subjects of the quasi-public sectors
224 thousand sq.m. of the excessive areas
Measure accepted as of today
The Ministry of Finance sold:
The local governments sold:
- 3 state shares
- 20 state shares
- 0,7 thousand sq.m of the excessive
- 12,7 thousand sq.m. of the
areas
- receipts from sale made – 345,4
million tenges
excessive areas
- receipts from sale made – 393,6
million tenges
18
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19. PARTICIPATION IN DEVELOPMENT OF THE COMPREHENSIVE
PROGRAM OF PRIVATIZATION FOR 2014-2016
Criteria of preservation in state ownership
of subjects of quasi-public sector
STATE PROPERTY
State
functions/services
No
competition
Safety
State
programmes
Mechanisms of
reduction of state
participation:
1) Auction;
2) Commercial
tender;
3) Trust management
(with the right of the
subsequent
repayment);
4) Stock exchange;
5) Additional
emission
6) Trust management
(without the right of
the subsequent
repayment);
7) Rent;
8) Reorganization by
merge;
9) Elimination.
19
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20. RESULTS OF AUDIT OF THE STATE REALE STATE OF REPUBLICAN
PROPERTY IN 18 456 STATE LEGAL ENTITIES
The Ministry of Finance jointly with local executive bodies
revealed
520 thousand sq.m of the excessive areas
The commission on questions of optimization of
subjects of quasi-public sector and objects of the
state real estate approved audit results
on
№
60 thousand sq.m. aren't
coordinated and will be
considered at Commission
meeting
460 thousand sq.m of the excessive areas
Proposed
Sq.m.
Performed
Sq.m.
1
under social objects
107 000
transferred
22 300
2
on privatization
262 000
sold
13 500
3
for SI and SE placement
91 000
placed
44 200
Total exessive areas :
460 000
80 000
20
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21. INTERNATIONAL COOPERATION AND INTERNATIONAL LEGAL ACTIVITY
OF THE MINISTRY OF FINANCE OF PK IN 2013
Fees
Cooperation with IFO
$ 496 million
ADB 5,5
114
IDA
0,8
EDB
IBD
Agglomerative
tendencies (2)
500
EBRD
IBRD
Signed (9) and ratified (13)
international contracts
23
Foreing state (8)
IFO
(12)
Investments
7,8
0,9
Membership dues in
2013.
In spheres
received investments in
2013, mln. dollars of the USA
Tax (1)
General
cooperation (3)
Customs (1)
16 agreements were signed
Financial
inteligence (2)
37 agreements were developed
Borrowing (2)
21
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