Economist Comments on National Fund

Economist Galymzhan Aitkazin drew attention to the situation surrounding the National Fund of Kazakhstan, Orda reports.

He noted that the National Fund's revenues, considering investment income, amounted to 8.7 trillion tenge since the beginning of the year, according to data from the Finance Ministry report. This is 41% more than last year. 

However, withdrawals increased by 34%, reaching 5.31 trillion tenge.

This amount includes:

• Guaranteed transfers (two trillion tenge)
• Targeted transfers (3.29 trillion tenge)
• Administration costs (15 billion tenge)

As of December 1, 2023, net revenues to the National Fund amounted to 4.3 trillion tenge, and taking into account investment income, 6.2 trillion tenge with withdrawals of four trillion. Indeed, at the end of last year, they carried out a plan with KazMunayGas shares, due to which withdrawals sharply increased by 1.3 trillion tenge, to 5.3 trillion tenge, Galymzhan Aitkazin writes.

Over the past year, The National Fund has taken on an increased burden.

The government increased targeted transfers in 2024 from 1.6 trillion tenge to 3.6 trillion tenge, resulting in record withdrawals.

According to Aitkazin, the situation is cause for concern, as the fund and its investment income cover withdrawals. 

Over the past two years, more than 11 trillion tenge (about 22 billion dollars) have been taken from the National Fund, which currently has a balance of 60 billion dollars.

Original Author: Artem Volkov