Economic news in brief

On Nov. 25, Prime Minister Karim Massimov took part in a Senate meeting. During discussion of the law On the National Budget for 2015-2017, Massimov answered a number of questions. “It will be necessary to make changes to some legislative acts. Currently, the parliament is considering the draft law. We are currently working with the World Bank Group on using advanced international methods. The financial system will be better controlled,” he said. The prime minister called structural reforms in the economy and a counter-cyclic budget policy priority areas of government. Massimov also answered questions surrounding the Unified Accumulative Pension System. “We think that the most important thing is to ensure the security of the pension system,” the prime minister said. After discussions, members of the senate voted to adopt the law On the National Budget for 2015-2017.

Prime Minister Karim Massimov earlier attended a Nov. 19 plenary meeting in the Mazhilis (lower chamber of parliament). During the meeting, a draft law titled On the National Budget for 2015-2017 was approved. “Firstly, this is a counter-cyclical budget policy. The budget for 2015-2017 will implement it. The global economic situation has worsened and governments must stimulate economic activity. We plan to do it,” the prime minister said. “It is important to carry out structural reforms at the present moment because many countries are suffering from low economic activity.”

According to the Ministry of National Economy, 160 billion tenge (US$881.54 million) will be taken from the National Fund of Kazakhstan to modernise housing and communal services during 2015-2016. The move was taken in light of a recent presidential state-of-the-nation address. According to Minister of National Economy of Kazakhstan Yerbolat Dossayev, modernisation projects will reduce wear on heat networks, water supplies and sanitation from 65 percent to 53 percent. He also said that it is planned to achieve a number of key performance indicators regarding housing. More than 1.4 million square metres of housing will be built by 2020 for projects including public rental housing; 60 percent of rental housing will be located in agglomerations in Astana, Almaty, Shymkent, Aktobe and 40 percent will be in regional centres, company towns and rural settlements.

A regular meeting of the Interdepartmental Commission for Regional Policy was held and chaired by First Deputy Prime Minister of Kazakhstan Bakytzhan Sagintayev on Nov. 21. The meeting was attended by various department and ministry heads. At the meeting, a complex plan for the development of monotowns covering 2015-2017 was approved. The plan is designed to increase the quality of life in single-industry towns, assist in their sustainable development and aid in their integration into both Kazakhstan’s future and that of their region. The plan covers three key areas: branding (identifying economic potential and promising new specialisations,) economic diversification and the development of small- and medium-sized enterprises and the development of engineering infrastructure.

“The five-year programme for the development of Kazakhstan, Nurly Zhol, should be the main driver behind industrial growth,” said Chairman of the Board of the Kazakhstan Industry Development Institute Aidyn Kulseitov at a Nov. 20 Central Communications Service (CCS) briefing. “The head of state initiated Nurly Zhol to drive industrial growth. Nurly Zhol should be viewed as a promoter of industrialisation,” Kulseitov said. Nurly Zhol is intended to cover all aspects of life, from social and economic development to small and medium business and banking sector growth.

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