ASTANA, Kazakhstan, November 10. Kazakhstan will gradually reduce its budget deficit to ease the national debt burden and strengthen macroeconomic stability, Trend reports via the Ministry of Economy of Kazakhstan.
Deputy Prime Minister for National Economy Serik Zhumangarin emphasized that budget and tax policy must be aligned under the new Budget and Tax Codes, which introduce a stronger link between fiscal and monetary policies.
“Budget and tax policy must be considered comprehensively. The new codes, for the first time, establish a clear link between fiscal and monetary policies. One of the key goals is achieving a stable inflation rate,” said Zhumangarin.
The new Budget Code, adopted in March, introduces a ten-year forecast for the country’s socioeconomic development, updated every three years, and enshrines long-term budget rules in law.
“A budget expenditure cap has been established: in 2026, we will meet this cap, and in 2027–2028, we will be significantly below it. This means a reduction in fiscal stimulus to the economy,” Zhumangarin noted.
The deputy prime minister added that analytical reports on fiscal, financial, and banking risks will now accompany the draft budget submitted to parliament, alongside an assessment of tax incentives’ effectiveness.
According to Zhumangarin, the budget deficit will decline to 2.5 percent of GDP in 2026 and to 0.9 percent by 2028. “This does not directly reduce the national debt, but it does reduce the debt burden, as the state will borrow less,” he said.
The government also plans to improve tax administration by decentralizing key tax revenues and introducing digital oversight mechanisms.“The new Tax Code is not just a VAT document, but a comprehensive tax administration reform. The number of tax types has been reduced, and the volume of reporting has been reduced by 30 percent,” Zhumangarin said.
He added that approximately 5.3 trillion tenge ($10.1 billion) in additional revenue is expected next year due to reduced tax gaps, fewer exemptions, and higher economic growth.