Local budgets to gain additional ₸500B, says Deputy PM Bozumbayev

Speaking at the Forum of Rural Akims (governors) on Friday, Kanat Bozumbayev highlignted that the work to transfer additional revenue sources from the national budget to local budgets is continuing.

“This has led to a significant increase in local budget revenues from KZT 3.1 trillion to KZT 7.9 trillion over the past five years,” Bozumbayev noted.

Starting next year, certain types of taxes, fees, and all administrative fines will be transferred from the center to the regions.

Furthermore, individual income tax and corporate income tax collected from SMEs will be directed to third-level budgets (districts and cities of regional significance). This shift means that over 70% of all local budget revenues will be accumulated by the budgets of districts and the cities of regional significance.

“As a result of all these changes, local budgets will additionally receive more than 500 billion tenge,” the Deputy Prime Minister emphasized.

At the same time, to reduce regional disparities in infrastructure access, a new Regional Standards System has been approved. The requirements of this system are now enshrined in the Budget Code. Consequently, priority support will be directed to the most underdeveloped regions.

“For example, as of today, the gap in basic infrastructure provision between the most developed and some other regions is 1.5-fold. Accordingly, general-purpose transfers for development have been formed based on the needs of lagging regions,” Kanat Bozumbayev said.

By the end of 2028, the level of infrastructure provision is expected to increase by 5.1% and reach 69.2%.

As Qazinform previously reported, addressing the forum, Kassym-Jomart Tokayev said that 'there will be no presidential quota' in a new Parliament.