Experts Comment on Potential Budget Crisis

State budget expenditures exceed revenues, and consistent spending from the National Fund only worsens the situation. Experts are calling on the government to address the problem, Orda.kz reports.

Political scientist Gaziz Abishev believes that the acute budget crisis should force both the government and society to examine things more soberly. According to him, genuine economic problems should result in officials discontinuing dubious restrictions and attempts to manually regulate socio-economic processes. 

The crisis should become a vasodilator and thrombolytic agent for the economy, forcing officials to abandon the huge administrative and bureaucratic barriers that hinder its free functioning. The following principle seems obvious: everything that does not contradict the Criminal Code and helps fill the state budget should be allowed. Stop counting on oil replenishments and frantically spending them, counting on a lucky break. If something works, is in demand, and pays taxes, let it work, the political scientist said.

Gaziz Abishev's position is shared by economist Galymzhan Aitkazin, who called this point of view "justified alarmism" on his Telegram channel. The expert emphasizes that it is impossible to simultaneously take anti-crisis measures and force the economy into a strict framework with prohibitions and restrictions.

The economy of Kazakhstan, given current prices for raw materials and taking into account international reserves, feels quite good, but the artificial budget crisis, which was the result of short-sighted and poor forecasting and planning, led to an increase in budget expenditures. In addition, the government's stimulating approach, especially with regard to broad and not always targeted measures of state support, including through tax breaks, looks not only unproductive but also destructive, warns Galymzhan Aitkazin.

According to Gaziz Abishev, Kazakhstani society has yet to experience the crisis. If the situation worsens, the country will either be on the verge of default or the tenge exchange rate will fall by one and a half to two times. Therefore, it will no longer be possible to ignore economic problems.

Then Kazakhstani society will have a chance to emerge from the ideological fog and rethink the current agenda. Understanding what we already have and what we should do is the main thing, and what is secondary. That society should first of all be engaged in preserving economic (personnel, intellectual and other) potential. And then pompously drive lofty ideas back and forth,  Gaziz Abishev

Galymzhan Aitkazin also advises Kazakhstan's authorities to revise economic processes in favor of market mechanisms, reduce the state's unproductive share, and give more freedom to businesses.

It’s time to get rid of thoughts in our heads about a permanent crisis in the economy, which lead to appropriate measures and actions, the economist believes.

Kazakhstani society ought to take a step back from discussions about the need to ban vaping or “LGBT propaganda” and think about more important issues that directly affect the future.

If our children are forced to live in a poor, stagnant country with a crumbling infrastructure, degraded education and healthcare, and a lack of prospects, they will not be inclined to admire the passion with which modern speakers proclaim spirituality and honor,concludes Gaziz Abishev.

Original Author: Nikita Drobny

DISCLAIMER: This is a translated piece. The text has been modified, the content is the same. For accuracy, please refer to the original article in Russian published on 05/08/24.