WEEKLY REVIEW: GOVERNMENT. National Budget for 2010-2012 under consideration. Agriculture development – encourage rural cooperatives. Moratorium on public posts canceled.

Monday the Kazakhstan Council for Economic Policy held 16th session of the National Budget Commission in the Ukimet Uyi under the chairmanship of Prime Minister. Members of the Council discussed the tendencies of the socio-economic development of Kazakhstan for 2010-2012 and the parameters of the national budget for the coming three year period. Budget plans of the Presidential Administration, the National Human Rights Center, the economic board of the Kazakh Parliament, the Accounts Committee for Control over Execution of the State Budget and the Supreme Court were considered at the session. Next day17th session of the National Budget Commission considered budget plans of the Constitutional Council, the Prosecutor General's Office, the Kazakh Ministry of Energy and Mineral Resources, the National Security Committee and "Syrbar" foreign intelligence service. Later the Budget Commission considered the budget requests of the Kazakh Central Election Commission, the Agency on Construction, Housing and Utilities, the Republican Guard, the Agency for Combating Economic Crime and Corruption, the Presidential Administration and the Presidential Security Service.

This week Prime Minister Karim Massimov, Vice PMs Umirzak Shukeyev, Serik Akhmetov and Yerbol Orynbayev made reports on the socio-economic development in the first half of 2009. President Nursultan Nazarbayev gave his positive estimation to the Government's work on anti-crisis measures realization. According to the President, the Anti-Crisis Program, allocation of funds equal to Kazakhstan's 14% GDP allowed the country to stand the crisis. In the 2^nd q the economic growth made 3%, slowdown of inflation is observed. Problems of 5.5 thousand housing investors were solved. By the end of the year 20 thousand investors' problems are planned to be settled too. "As for housing and utilities and infrastructure sectors, the Government took efficient measures. However, we should continue this work", the President noted. According to him 'the forecasts for the 3^rd and 4^th quarters appear quite optimistic. I think the funds we have allocated within the anti-crisis program will work in full in the second half". He urged the Government to get keeping prices down under special control since it may affect social stability, like for example for foodstuffs, fuel and lubricants and construction materials.  The Head of the State noted that the Government had allocated big funds into the revival of the construction sector and speculation on the construction materials is not allowed.  He also took a favorable view over the Government's activity on increasing Kazakhstan's content in provision of services, goods and work. You have done huge work in this direction", N. Nazarbayev said at the sitting in Akorda and added that "execution of all contracts should be under strict control". The same time the President gave special attention to the quality of the domestic products. "If the products do not meet consumers' requirements this work will be eventually scaled down", he stressed.

Situation in agriculture sector continues to be one of the main concerns of the President. This week Head of the State Nursultan Nazarbayev received Minister of Agriculture Akhylbek Kurishbayev. The Minister reported to the President on the situation in agro-industrial sector and on the course of execution of field work. As the Minister noted, the croplands have been enlarged by 1.2 mln hectares this year due to the state support. The Ministry expects good harvest in the northern regions of the country. North Kazakhstan is ready for the harvesting. 45% of the cereal crops will be harvested with modern harvest machines without loss of the yield. The Head of the State charged to set control over effective use of the money of the National Fund and provide solution of tasks set to "KazAgro" on construction of glass-house entities, farms, freed yards. He also laid emphasis on development of the stock breeding complex of the country on a systematic basis through small farms' unification.

The Ministry of Agriculture of Kazakhstan proposes to increase the lending funds for rural consumers' cooperatives up to KZT 3.5 billion in 2010. According to Agriculture Minister Akhylbek Kurishbayev «Fast development of rural cooperative entities requires gradual systematic work.  To set up such cooperative entities we need their members to be willing to do that», - he remarked.  He urged regional administrators/akims to form special work groups within a month and assured that training will be provided if necessary.  «Each of these groups must research their local situations, select a leader and create cooperative entities. Thus, each region must have two of three pilot cooperative entities engaged in services, procurement and marketing», - the Minister added. The Minister also required business corporations to take active part in the development of rural cooperation by providing the necessary production infrastructure, financial resources and logistics. The Agriculture Minister suggested to the Ministry of Economy to include rural cooperation development into the rating of evaluation of akims' activity at all levels. He also urged that the 2010 budget must envisage increased lending funds for rural cooperatives up to KZT 3.5 billion. Such measures will let form and fortify the basis of rural cooperation at the first stage and ensure boosting of production in the future, according to the Minister. 8 prior sectors of development for agro-industrial complex of the country have been defined. According to Vice Minister of Agriculture of Kazakhstan Arman Yevniyev "The volume of expected benefits and influence on the GDP growth for the five-year period were the principal criteria for the choice of the sectors' priorities". Development of the grain production and export and its deep processing, development of milk and milk products, fine-wool sheep farming, as well as development of meat and meat products and other were in the number of selected sectors. According to A. Yevniyev implementation of these projects will let create about 800-2000 new jobs and pay about KZT 571 bln. The State Agro-Grocery Policy supposes gradual transfer from raw material export to the export of products of advanced processing.  As Vice Minister informed, according to the results of the analysis held it became clear that there is a deficit of macaroni production in the country which can be covered at the expense of the national production in 2014. The country has some possibilities to increase grain export up to 9.2 mln tons as well as end products in terms of grain will amount to 3 mln tons that will let increase the gross growth of export income to KZT 275 bln.

Within the framework of Agriculture Development Plan an agricultural delegation of Kazakhstan headed by with by President of Kazagroinnovations company Bayan Alimgazinova visited Israel during July 26 - 29, 2009. The visit was the result of the agreements reached by the presidents of Kazakhstan and Israel during the visit of the President of Israel Mr. Shimon Peres to Kazakhstan a month ago. These agreements also envisage creation of the Fund for carrying out of joint researches in the field of agriculture. Special attention of the delegation has been paid to acquaintance with the Agricultural Research Organization, The Volcani Center, which is supposed to become a copartner from the Israeli party in the bilateral Fund. June 29 Ambassador of Kazakhstan in Israel Mr. Galym Orazbakov and participants of the Kazakhstan delegation met Minister of Agriculture of Israel Mr. Shalom Simhon who in his welcoming speech supported further development of relations in agriculture between the two countries, and also sounded his invitation to the Minister of Agriculture of Kazakhstan to visit Israel. During the meeting the Memorandum of mutual understanding and cooperation between the company Kazagroinnovations and The Volcani Center was signed, the goal being development of agro-science by means of joint researches, application of technologies and innovations in agricultural sector. The delegation also had some meetings with the management of the Israeli institute of export and international cooperation, with representatives of the Yissum, NaanDanJain Irrigation, Azrom and Yamko Yadpaz companies, press service of the Kazakhstan Embassy in Israel reports.

Good news came up this week for those who are looking forward to join public services, especially young university graduates and middle management professionals. The moratorium on hiring employees for vacant administrative public posts imposed last year has been cancelled as per the instruction of Kazakhstan President Nursultan Nazarbayev. This decision was made based on the measures carried through by the Government on reduction in vacant administrative positions in central and local executive bodies. 2,577 positions including 782 positions in central executive bodies and 1,795 positions in local executive agencies have been cut as a result of Government Resolution. Budget savings in the current year make more than KZT 600 million, where more than KZT 100 million are from national budget funds, and more than KZT 500 million in local budgets.