ASTANA – Kazakh Finance Minister Madi Takiyev stated that the country’s public debt remains manageable and within safe limits. As of the beginning of this year, public debt totaled 36.4 trillion tenge (US$74.7 billion), or 22.8% of the gross domestic product (GDP), significantly below the national target of 32% of GDP.
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The statement came amid criticism from lawmakers, who noted the budget’s growing dependence on refinancing previously accumulated liabilities, during a June 10 plenary session of the Mazhilis.
More than half of the borrowings went toward refinancing
Mazhilis Deputy Yerlan Stambekov noted that in 2025, government debt increased by 4.8 trillion tenge (US$9.8 billion), and more than half of the new borrowings, 51% of the total of 8.2 trillion tenge (US$16.8 billion), was used to refinance existing debt rather than finance new development projects, reported Kazinform.
In response, Takiyev emphasized that refinancing is a common international practice and enables lower debt-servicing costs by raising funds at more favorable rates.
One of the most notable events in the country’s debt policy was the placement of panda bonds on the Chinese market. The issue volume was $500 million, with a rate of 1.9% per year. According to Takiyev, the deal will diversify the debt portfolio and create a benchmark for Kazakhstan’s quasi-state-owned companies.
The economy grew by 6.5%
Last year, Kazakhstan’s economy grew by 6.5%. The average monthly wage reached 442,000 tenge (US$906), the unemployment rate remained at 4.6%, and the National Fund’s assets increased to $73.8 billion, reported the ministry’s press service.
The national budget’s own revenues increased by 17.5% compared to the previous year, reaching 15.3 trillion tenge (US$31.4 billion). This growth was driven by increased corporate income tax and VAT revenues, as well as improved tax administration.
Despite economic growth, national budget revenues amounted to 21.4 trillion tenge (US$43.9 billion), or 99% of the planned amount. The shortfall reached around 335 billion tenge (US$687 million). Takiyev attributed this to a decline in the average oil price to $69 per barrel from the projected $75, a $1.7 billion decline in exports, and reduced tax payments from large enterprises due to the geopolitical situation.
Social spending remains a priority
In 2025, the government allocated 9.3 trillion tenge (US$19 billion) to the social sector and 7.7 trillion tenge (US$15.8 billion) to support the regions.
Supreme Audit Chamber points to systemic problems
Alikhan Smailov, chair of the Supreme Audit Chamber, stated that the budget execution audit revealed a number of systemic deficiencies.
According to him, despite exceeding the GDP forecast by 9 trillion tenge (US$18.5 billion), the budget shortfall was 335 billion tenge (US$687 million). Auditors attribute this to shortcomings in revenue forecasting and the use of inflated estimates in planning.
Furthermore, 2.4 trillion tenge (US$4.9 billion) of budget funds were reallocated during the year, 99 projects worth 75 billion tenge (US$153.8 million) were excluded, and more than 20% of the over 600 planned investment projects were not completed. The volume of funds spent inefficiently increased by 1.7 times compared to the previous year.
