Kazakhstan's three-year budget drafted with minimal financial safety margin

Kazakhstan's draft republican budget for 2027-2029 was considered in its first reading at the Kurultai during a plenary session on Wednesday. Deputy Olga Perepechina said the document was formed with a minimal margin of financial stability, and that any macroeconomic instability could require additional borrowing or withdrawals from the National Fund.

Perepechina said about 80% of republican budget spending goes to social obligations, state security and servicing public debt. Two trillion tenge from the National Fund is earmarked for modernising engineering and utility infrastructure, building roads, and providing clean drinking water. However, according to the Supreme Audit Chamber, targeted transfers were planned and the infrastructure project list was formed before the state investment project portfolio was approved.

Perepechina noted the government's plan to cut the budget deficit from 2.3% of GDP in 2027 to 0.4% in 2029. She warned that debt servicing costs in 2027 could exceed 40% of own revenues. She also said a VAT increase from 12% to 16% has not yet produced the expected revenue growth in 2026. The budget is based on oil at $70 per barrel.