National Fund: Deputies Approved 2 trillion KZT Withdrawal

At a plenary session, the Majilis deputies adopted amendments to withdraw an additional two trillion tenge from the National Fund. The money will be used to strengthen the regional infrastructure and support the budget, Orda.kz reports.

Minister of National Economy Nurlan Baibazarov explained that withdrawing funds from the National Fund was made within the Budget Code's requirements. According to him, this is necessary to support regional growth and solve infrastructure problems.

When discussing the amendments, the National Bank Chair Timur Suleimenov emphasized that the total transfer volume from the National Fund will reach 5.6 trillion tenge by the end of 2024. 

The amount of withdrawals will also exceed six trillion tenge:

Such a large-scale withdrawal exerts serious inflationary pressure and limits the possibilities of easing monetary policy. We cannot reduce the base rate and, accordingly, interest rates on loans for businesses. That is why it is important to use the new Tax Code as a tool to increase non-oil budget revenues and ensure its sustainability,Suleimenov stated.

As of today, the republican budget revenues, excluding transfers, have decreased by two trillion tenge.

Finance Minister Madi Takiyev noted that this happened because tax revenues were reduced by 3.1 trillion tenge, and non-tax revenues increased by 1.1 trillion tenge.

In addition, 150 billion tenge will be allocated to service the state debt as part of the fund redistribution.

Original Author: Artem Volkov