ASTANA — Kazakhstan plans to expand AI in budget management, overhaul investment coordination, consider higher taxes on wealthy citizens, and raise the minimum monthly wage to 110,000 tenge ($242) in 2027 as the government moves to implement President Kassym-Jomart Tokayev’s state-of-the-nation address.
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The measures were discussed at an Oct. 29 meeting chaired by Prime Minister Olzhas Bektenov, who called for coordinated action by the government and regional administrations to carry out the president’s priorities.
Tokayev has designated 2027 as the Year of Nationwide Construction, with the People’s Construction program expected to drive infrastructure development across the economy. In his address to the nation, he said Kazakhstan should become “one large construction site,” with large-scale construction taking place across all regions.
“The president’s address to the people of Kazakhstan sets a historic task before us to build and pass on to future generations a qualitatively new country with a strong and dynamic economy,” Bektenov said.
He called on the government and regional administrations to mobilize available resources to build and modernize socially and economically significant facilities, as well as housing and utility infrastructure.
Bektenov also stressed the need to align investment policy, small and medium-sized business development, budget and tax reforms, digitalization and social support with the country’s long-term economic goals.
AI to be used more widely in budget process
Bektenov instructed the Ministries of Finance, National Economy, and AI and Digital Development to expand the use of digital tools and AI in budget procedures. Tokayev identified this priority in his address, saying, “To prevent unjustified and inefficient spending, it is advisable to use the capabilities of artificial intelligence technologies.” He also called for completing the digitalization of the treasury system and establishing a unified approach to managing budget flows.
The government aims to introduce automated checks throughout the budget process, including systems to identify risks of misusing public funds or spending them inefficiently. Digital solutions should also enable real-time monitoring and auditing of budget data and transactions.
The Finance Ministry was tasked with creating a treasury information system and integrating government systems for managing budget revenues and expenditures. Bektenov said all public spending must be clearly prioritized, with an emphasis on delivering tangible economic returns.
Government to review investment policy and taxation of wealthy citizens
Tokayev called for investment policy management to be concentrated in a single center, saying in his address that investment efficiency should be assessed by the number and quality of production facilities launched and their actual contribution to the economy.
The government plans to revise investment management mechanisms, strengthen investment projects’ contribution to the economy, and expand small and medium-sized businesses’ participation in public procurement.
Bektenov instructed the Ministries of National Economy and Foreign Affairs, together with the Baiterek holding, to submit coordinated proposals within 10 days for establishing an integrated investment management system. The proposals should identify a central decision-making body, clarify participants’ responsibilities, and improve coordination with investors.
The government also aims to prioritize projects involving deeper processing and higher labor productivity. Relevant ministries, the Samruk Kazyna Sovereign Wealth Fund and Baiterek Holding have one month to prepare a list of such projects, identifying potential investors, implementation timelines, localization levels and expected economic benefits.
Separately, several ministries, Samruk Kazyna, Baiterek and the Atameken National Chamber of Entrepreneurs were instructed to submit proposals within a week to expand small and medium-sized businesses’ access to procurement by government agencies and quasi-public companies.
The National Economy Ministry must also refine targeted amendments to the new Tax Code and coordinate them with government agencies.
On taxation, Tokayev said it was time to discuss introducing a higher tax rate for people with large fortunes. In his address, he framed the initiative as a matter of fairness and called for proposals from the government and Kurultai.
Bektenov instructed the Ministries of National Economy and Finance to study international practices and submit proposals on taxing particularly wealthy citizens within one month.
The Finance Ministry was also tasked with improving local tax collection, reducing the shadow economy and completing the digitalization of tax and customs administration, including through AI tools.
Plans for 2027: higher minimum wage and support for small businesses
Kazakhstan plans to increase the minimum monthly wage to 110,000 tenge (US$242) from Jan. 1, 2027, First Vice Minister of National Economy Azamat Amrin said at the meeting. The government aims to increase real household incomes through sustained, high-quality economic growth and lower inflation. Measures to monitor pricing will be strengthened alongside tariff policy.
In his address, Tokayev said the country’s main goal was to raise household incomes, stressing that this required systematic efforts to combat inflation.
To support entrepreneurship, the government plans to develop a medium-sized business development plan that will include long-term financing mechanisms, technological modernization and reduced administrative pressure.
The government is also considering a three-year moratorium on inspections and preventive controls for micro and small businesses from Jan. 1, 2027, in consultation with members of the Kurultai, Amrin said. The proposal has not yet been presented as a finalized measure.
In his address, Tokayev proposed that the Kurultai and government discuss another three-year moratorium, describing it as an opportunity to overhaul the inspection system and move toward digital regulation.
The government has also prepared a package of targeted Tax Code amendments based on proposals from the business community. The government will examine the possibility of a higher tax rate for wealthy citizens in light of international practices.
To support Tokayev’s infrastructure agenda, the government has established an Infrastructure Development Fund, Amrin added.
