Deputy Warns of Recurring Issues in Kazakhstan’s Public Debt Management

Deputy Tatyana Savelyeva emphasized that the Supreme Audit Chamber continues to identify the same issues in public debt management year after year, Orda.kz reports. 

According to Savelyeva, Kazakhstan’s public debt has grown 2.5 times over the past decade.

In recent years, the SAC has regularly recorded systemic problems in public debt management. There is no assessment of repayment, analysis of fiscal and currency risks, or consolidated balance sheet for all types of debt obligations. All these problems arise against the backdrop of growing government debt. At the same time, the size of the debt remains within 22% of GDP and, from the government's point of view, should not cause concern. This approach, as the SAC rightly notes, distorts the real situation,
 stated the deputy.

She noted that new provisions of the Budget Code came into force in 2025, laying a foundation for improved debt management.

However, she questioned how effective they would be in practice.

The question is how to avoid the effect of normative progress with practical inertia. What specific mechanisms have been developed and implemented by the Ministry of Finance to implement the new norms of the Budget Code on public debt management? Can we be sure that when considering the 2025 report, the same comments that the SAC records annually will not be repeated?
 asks Tatyana Savelyeva.

Minister of National Economy Madi Takiyev reported that as of April 1, the national debt stood at 31.9 trillion tenge, or 21% of GDP. He explained that the figures changed slightly following a revaluation last year, but assured that the issue remains a government priority.

Takiyev outlined two key strategies to reduce the debt: cutting the budget deficit and increasing revenues.

In general, to reduce the national debt, it is necessary to reduce the deficit and increase the tax base, that is, the revenue side of the budget. This is being done. Taking into account the new Tax Code, I think these issues can be adjusted. As for changes to the Budget Code, all proposals have been taken into account. Today, the Ministry of Finance is developing the relevant regulatory legal act, and we plan to launch it in July,
said Takiyev.

He added that more detailed information on the debt situation will be included in the next report.

Original Author: Artyom Volkov