BAKU, Azerbaijan, June 10. Economic growth does not automatically translate into proportional increases in budget revenues due to a range of external and internal factors, including VAT refunds, oil revenue distribution rules, global energy prices, and exchange rate fluctuations, Deputy Prime Minister and Minister of National Economy of Kazakhstan Serik Zhumangarin said during a plenary session of the Mazhilis, Trend reports via the Kazakh government.
Responding to a parliamentary question regarding a reported budget shortfall of more than 3 trillion tenge (about $6.1 billion), Zhumangarin noted that oil-sector revenues are fully directed to the National Fund and are therefore not reflected in republican budget tax collections.
“In 2025, VAT revenues amounted to 6.1 trillion tenge ($12.4 billion), which is 18% higher compared to 2024. However, we did not meet the budget plan by 656 billion tenge ($1.3 billion). This is because VAT refunds were planned at 877 billion tenge ($1.7 billion), but actually reached 1.354 trillion tenge ($2.7 billion),” he said.
The Deputy Prime Minister stressed that Kazakhstan’s investment policy is implemented not only through the state budget but also via development institutions and the quasi-public sector, in line with international practice. He added that fiscal constraints under budget rules require the government to stimulate both public and private investment activity.
Zhumangarin also noted that from next year, heads of quasi-public sector entities will report on performance results to the government and parliament, strengthening accountability within the state planning system.
Currency conversions are based on the official exchange rate of the National Bank of Kazakhstan as of June 10, 2026, fixed at 1 USD = 490.21 KZT.
