Kazakhstan budget revenue reaches 20.2 trillion tenge: what is driving the increase?
State-budget revenue excluding transfers reached 20.2 trillion tenge in nine months, up 16.3%, the finance ministry said. Tax receipts rose by 3 trillion tenge. We explain why more nominal revenue does not automatically translate into the same increase in spending power or better public services.
Kazakhstan’s Finance Ministry reported on October 13 that state-budget revenue excluding transfers reached 20.2 trillion tenge in January–September, 16.3% above a year earlier. The ministry said social obligations were financed during the period.
Tax receipts increased by 3 trillion tenge, with a reported growth rate of 130.3%. Republican-budget revenue rose by 2.7 trillion tenge, nearly 26%. Minister Madi Takiyev cited export commodity prices, higher trade turnover and changes in tax rates among the drivers. The government also returned 811.5 billion tenge in VAT to businesses.
Nominal revenue should not be confused with budget purchasing power. Inflation and more expensive procurement can absorb some of the increase. Revenue from a changed tax rate and revenue from more production also have different consequences for households and firms.
A fuller assessment needs spending, deficit, debt and oil-revenue figures, as well as results from funding schools, hospitals and infrastructure. A single revenue headline cannot establish the quality of public services.
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