Kazakhstan’s state debt rises to 34 trillion tenge as debt burden declines

Armin said the government primarily assesses the debt burden based on the ratio of government debt to GDP.

According to the vice minister, state debt has risen from 16 trillion tenge in 2020 to 34 trillion tenge, representing a 2.1-fold increase. Over the same period, Kazakhstan’s GDP grew 2.3 times, from 70 trillion to 150.9 trillion tenge.

As a result, if we look at debt relative to GDP, it has declined from 23.6 percent to 21.8 percent, a decrease of 1.8 percentage points. Despite the increase in state debt in absolute terms, economic growth is outpacing the growth of debt obligations, meaning the overall debt burden on the economy is declining, Amrin said in response to questions from deputies of the Qurultay.

Amrin also noted that nearly 75 percent of Kazakhstan’s state debt consists of domestic borrowing, while 25 percent is external debt.

Interest payments on domestic government securities go to the Kazakhstani banks, the pension system and other domestic investors.

Accordingly, these funds do not leave the economy but are redistributed within it, he said.

Amrin said one of the government’s main tools for reducing the debt burden will be to cut the budget deficit and, consequently, reduce the need for new borrowing.

The government plans to lower the budget deficit from 2.7 percent of GDP in 2025 to 2.5 percent in 2026 and 2.3 percent in 2027.

Another measure involves refinancing existing debt and creating a more balanced debt repayment schedule.

"Around 4 percent of state debt is short-term, 45 percent is medium-term and 50 percent is long-term," the vice minister said. 

Therefore, the main portion of the debt is concentrated in the medium- and long-term periods, which allows us to reduce refinancing risks, including those associated with the short term, he added.

Earlier, Qazinform reported Kazakhstan's budget revenues were expected to rise by 2.8 trillion tenge in 2027.