GOVERNMENT. Weekly review. “We have many problems but their solution is in our hands” – Prime Minister Karim Massimov
National Budgetary Commission to discuss the Forecast of Kazakhstan's Socio-Economic Development for 2011-2015. The Commission also considered the regulatory-legal acts aimed at reduction of the budget incomes and increasing its expenditures.
At the session on July 13 the Cabinet members discussed three issues: provision of population with drinking water, imposing export customs duties on oil and oil products and the draft program on development of the country's pharmaceutical industry.
This year Kazakhstan finishes implementation of 2002-2010 Drinking Water Program. As Minister of Agriculture Akhylbek Kurishbayev informed, KZT 195 bln was spent in total for the Program's realization. 3.5 mln Kazakhstanis were provided with clean water due to this program. The number of rural people using imported water reduced by 82% - from 445 thousand to 83 thousand people. 74% of the funds allotted for the Program's implementation were provided from the national budget. However, the sector faces still several unsolved problems; therefore the Government will elaborate a new program for 2011-2020. The Prime Minister charged to develop the program till August 15 in order to envisage the funds for its realization in the next year budget. Vice Prime Minister Umirzak Shukeyev was appointed Chief of the Interdepartmental Commission on elaboration of this program.
The Ministry of Finances says KZT 90 bln will be needed every year for this aim. Two third of this sum will be provided from the national budget.
"In draft budget for 2010-2013 priority must be given to supply of clean water. As the President charged, we must fully solve this problem. There are many problems, all of them resolvable. Everything is in our hands", the Prime Minister said resuming the session.
At the session the Government members also took a decision to revise the export duties on oil and oil products. Export duty on crude oil was fixed at USD 20 per a ton and light oil products -at USD 99.71 and dark oil products - at USD 66.47. In conformity with the Government's Resolution the number of subsoil users subject to paying export duties is increased which includes TengizChevroil Kazakh-American Company, the consortium headed by Italy's Eni and Britain's BG developing Karachaganak - one of the largest oil deposits in the world.
Establishment of export duties in these amounts will let raising the budget revenues by USD 400 mln this year.
At the same session the Government approved the Program of Kazakhstan's Pharmaceutical Industry for 2010-2014 presented by First Vice Minister of Industry and New Technologies Albert Rau. The document provides for saturation of 50% of the domestic market with home-produced medicaments and medical products in kind. For this the country will need modernization of the existing pharmaceutical industries and construction of new ones, implementation of production quality standards and training highly-qualified personnel.
Following the session K. Massimov charged the Ministry to establish a special department
During the period from July 6 to July 13 Kazakhstan hosted the 51st International Mathematical Olympiad. The Kazakh national team ranks the 5th among 98 participating countries after China, the U.S.A., Russia and South Korea. At the closing ceremony on July 13 Prime Minister K. Massimov congratulated the school students, and noted that holding such prestigious event in our country could be possible due to our independence.
On Wednesday, July 14, Minister of Transport and Communications Abelgazy Kussainov met with Ambassador of Turkmenistan Magtymguly Akmyradov for discussing the terms of completion of Uzen-State border with Turkmenistan railroad which is Kazakhstan's part of the railroad line connecting Kazakhstan with Iran. The total length of this road will make 677 km, Kazakhstan's part will be 146 km. As the Ambassador informed, the Turkmen side had already finished building its section. In turn, A. Kussainov said the Kazakh section would be put into commission by December 2011.
On the same day a delegation of Kazakhstan headed by U. Shukeyev arrived in the Kyrgyz Republic. During the telephone talk of OSCE Chairman-in-Office Kanat Saudabayev with President of Kyrgyzstan Roza Otunbayeva the parties focused on the measures of implementation of the program of Kyrgyzstan's economic revival the agreement on which had been reached at the meeting of N. Nazarbayev with R. Otunbayeva on July 4 in Astana. At that time K. Saudabayev and R. Orunbayeva agreed on holding the sessions of the working groups for defining action plans.
At the meeting with the Kyrgyz President, the parties noted that restoration of infrastructure of Osh and assessment of the necessary volume of humanitarian aid are priorities of Kazakhstan's assistance to this country.
After then the working group met with First Vice Prime Minister of Kyrgyzstan Amangeldy Muraliev. U. Shukeyev said that Kazakhstan intended to use the means of the EurAsEC Anti-Crisis Fund to help Kyrgyzstan. At a briefing Shukeyev informed that seven specialized groups had discussed the major directions of cooperation with the Kyrgyz side.
"As we supposed, the main problems were connected with stabilization of the budget and compensation of budget deficit this year and banking sector. Besides, problems of restoration of the damage in the south of the country, energy supply in winter period, water-energy balance as well as near-border trade and customs procedures were discussed", he said.
The Joint Commission defined the volume of funds needed for implementation of the plan which makes USD 1 bln.
"We think that the World Bank, the Asian Development Bank, the EurAsEC Anti-Crisis Fund and the Foundation for Humanitarian Aid could donate these funds. For instance, Kyrgyzstan has USD 210 mln limit of financing in the EurAsEC Fund", Shukeyev added.
On Friday, July 16, Minister of Economic Development and Trade Zhanar Aitzhanova met with European Commissioner for Trade Karel de Gucht. At the meeting the parties stated completion of the bilateral talks with the EU on market access for goods within Kazakhstan's joining the World Trade Organization. As Z. Aitzhanova noted, the agreement was concluded as a result of complicated negotiations during the past five years. Two key issues remain unsolved still: the possibility of application of export duties on primary goods by Kazakhstan and the terms of access of foreign banks and insurance companies to financial services market. The talks on these two issues are planned to be finished in October 2010.