GOVERNMENT. Weekly Review: Post-crisis development programs approved and funded from national budget

This data was announced by the Statistics Agency on February 14.

The Kazakh Government held a session on Tuesday, February 15. Draft programs developed under the instruction of the President and outlined in his Address to the Nation were discussed at the session. Minister of Labor and Social Protection Gulshara Abdykalikova presented the new employment program till 2020, aimed at providing training, employment and assistance in organizing private businesses at the place of residence. In the absence of such opportunities the program is to facilitate the voluntary relocation to economically successful places. The program implementation will consist of three directions: training and employment assistance to self-employed, unemployed and low-income population in the labor market; promoting entrepreneurship in rural areas; increasing labor mobility. According to the Minister, the program will be realized in three stages: 2011 (development of implementation mechanisms and legal framework), 2012-2015 and 2016-2020. Till 2015 it is planned to cover 1.5 million people with the new program. Poverty level will be reduced to 6 percent (from the current 8.2 percent). The level of unemployment will not exceed 5.5 percent. Prime Minister Karim Massimov charged to promote the new program.

Kazakh Government also approved a program of post-crisis recovery (rehabilitation of competitive enterprises). The draft program was introduced by Minister of Finance Bolat Zhamishev. "The program is developed with the purpose of rehabilitation of competitive enterprises whose debt exceeds KZT 4.5 billion. Those enterprises whose debt is less than this amount will be able to benefit from state support under the "Business Road Map - 2020" Program", B. Zhamishev informed. According to him, the program will be financed from the national budget from 2011 till 2016. "This year it may need KZT 8.8 billion", the Minister added. The program is expected to have the following results: rehabilitation of 30-50 major enterprises, preservation of 70 percent of jobs at the enterprises, involved into the program.

"This program will not be widespread; it will be individual in nature. It is needed for businesses important for our economy, whose failure could have systemic consequences", the Minister resumed.

At the next session held on February 16 the Government has approved the draft Law "On amendments to the Law of the Republic of Kazakhstan "On the national budget for 2011-2013".

Introducing the bill at the Government's session, Minister of Finance Bolat Zhamishev noted that the change of a forecast of macroeconomic indicators for 2011-2015 constituted the ground for refinement of parameters of the national budget for 2011. The national budget revenues for 2011 were determined in the volume of KZT 4.249 trln increasing by KZT 207.9 bln against the current budget. The national budget income rose due to growth of economic development rate by KZT 74.7 bln, increase in foreign trade turnover and positive influence of the mechanism of transfer and distribution of import customs duties within the Customs Union - by KZT 85.5 bln, changes in world prices for mineral raw materials - by KZT 33.8 bln, reduction of VAT return amount - by KZT 15.87 bln, specification of grants attracted by the central state bodies - by KZT 0.6 bln. The funds foreseen for implementation of the Business Road Map-2020 program for training of specialists to the tune of KZT 10.9 bln are redistributed and fueled into a new employment program till 2020.

The program "On measures to support housing construction" was approved by the Government as well. As earlier reported, the program embraces three directions: construction of reasonably priced housing through savings at "Zhilstroysberbank", state funding of second-tier banks in order to back housing construction, and construction of utility networks. Due to the program implementation it is supposed to put into practice about 6 mln square meters of housing.

"Nur Otan" Party's faction held an enlarged session in the Majilis of the Kazakh Parliament later in the day. The meeting was devoted to the issues of the position of the Nur Otan Party's faction in the Majilis regarding the amendments to the national budget for 2011-2013. The Prime Minister introduced the amendments to the national budget at the session. He said that the amendments provided allocation of funs for realization of new programs, including "Education" program. KZT 7.1 bln is planned to be allocated for development of air transport medicine and equipment of medical and rescue points within the draft revised budget for this year. "These funds will be allocated for development of air transport medicine and equipment of medical and rescue points," K. Massimov said.

Prime Minister of Kazakhstan Karim Massimov addressed the issues of food prices raising as well. He promised to punish those who baselessly raises prices for food. "Definitely, prices increased at the beginning of the year", the Prime Minister said answering deputies' questions.

According to K. Massimov, the increase in food prices was caused by the global growth of food prices and unfair competition. K. Massimov also said that Head of State Nursultan Nazarbayev gave instructions to establish a working group to address these issues. "We will resolve this issue as soon as possible. Besides, as a long-term goal we aim at raising the level of competitiveness of our economy", the Head of the Government added.

The Kazakh Premier also informed that a working group was established to resolve the issue of pensioners born between 1948 and 50s whose pensions were lower due to the closure of many enterprises during the perestroika. Majilis Deputy Svetlana Ferkho informed that she and her colleagues received many requests from pensioners getting lower pensions. There are about 697 thousand such pensioners out of 1.6 mln in Kazakhstan. The Deputy noted that the solution of this problem was outlined in the Strategic Plan of the Ministry of Labor and Social Protection for 2010-2014.

Prime Minister of Kazakhstan Karim Massimov also explained the difference between the Employment Program-2020 and the Road Map which was realized during the crisis. According to him, the Road Map was aimed at temporary employment of the people. The Employment Program-2020 has a goal of providing people with permanent jobs and professional training. Besides, the new program will pay more attention to involvement of rural people into the process of industrialization. "Nevertheless, the new program has been developed mostly on the ground of the Road Map," the Premier noted.

The collegium of the Kazakh Defense Ministry chaired by President - Supreme Commander-in-Chief of the Armed Forces of the Republic of Kazakhstan Nursultan Nazarbayev was held in Astana on Thursday, February 17. Drawing the results of the session President of the country, Supreme Commander-in-Chief Nursultan Nazarbayev said that the held discussion would contribute to realization of tasks set before the Armed Forces of Kazakhstan.