Oil “potbelly” of Kazakhstan is minus

The second month of summer returned to a negative trend in the assets of the National Fund of Kazakhstan.

47cfb13ddee23c01d8df93f7cfbb34d3 - Oil "potbelly" of Kazakhstan is minusphoto: newtimes.kz

We will remind that in June the national Fund assets increased by 0.8%. In absolute terms – by 195,7 billion. Growth took place mainly due to the crediting of investment income for the first quarter of this year. In July, the situation has changed dramatically. In the second summer month recorded a decrease of 0.8%, or 195,4 billion tenge. Thus on 1 August the oil in the jug of Kazakhstan is 25 trillion 989,0 billion.

The main source of the decline was a significant slowdown in revenue growth in the Fund.

In July, they increased in July by only 3.7 percent. For comparison: in June due to the above mentioned investment income increase of 32.5% or 478,5 billion tenge.

The main source of revenues in the national Fund remains the direct taxes from the oil sector. For July, this article has developed a growth of 4.5% in absolute terms – 67.8 billion. However, this is below the June increase of 4.9% or 71.4 billion tenge. Other income from operations carried out by oil companies, the dynamics looks more optimistic. As in July they increased by 27.1% to 15.0 billion tenge. In June the increase was quite modest – only 1.3%.

Revenues from privatization of state property has increased in July by only 1,4%, which clearly indicates the decreased activity of the government in this direction.

The budget is bursting at the seams

It should be noted that in the structure of revenues there is a new article. It is related to the privatized assets of the national companies. According to statistics of the Ministry of Finance under this article in the national Fund received 0.9 billion tenge. As for the other types of income, then it is meaningful progress is not observed.

The volume of used funds of the Fund has increased more than income. Expenditure growth amounted to 14.6% or 267,7 billion tenge. That is, in July from the national Fund, the government seized $ 2 trillion. 97.2 billion tenge.

A key source of the negative are guaranteed transfers to the Republican budget. The growth on them was 18.4% to $ 1 trillion. 721,3 billion.

This situation suggests that the government is still not making ends meet in their accounts and without replenishment of oil “capsule” of the country is actually insolvent.

Officially

Report on receipts and use of the National Fund of Kazakhstan for August 1, 2019.

№ p/pNameThe sum, thousand tenge
123
1.The National Fund (hereinafter the Fund) at the beginning of the reporting period (cash execution), total:26 062 038 092
2.Income total:2 024 127 818
including:
— direct taxes paid by the organizations of oil sector (excluding taxes payable to local budgets)1 584 359 544
including: 
corporate income tax692 592 606
excess profit tax107 915 919
bonuses5 847 032
tax on extraction of mineral resources167 058 343
rent tax on export177 951 023
the share of the Republic of Kazakhstan on production sharing under the concluded contracts372 334 188
Additional payment of subsoil user carrying out activities for the contract on production section, and alternative mining tax from the organizations of oil sector60 660 433
— other income from transactions carried out by the organizations of oil sector (excluding receipts paid to local budgets)15 024 261
including: 
administrative fines, penalties, sanctions, penalties imposed by the Central state bodies, their territorial subdivisions on the organizations of oil sector8 450 117
other fines, penalties, sanctions, charges imposed by state institutions financed from the Republican budget to the organizations of oil sector5 751 254
the funds received from the natural resources on claims for damages by the organizations of oil sector822 890
other non-tax revenues from the organizations of oil sector 
— revenues from privatization of Republican property14 718 825
the income from the transfer to the competitive environment assets of national managing holdings, national holdings, national companies and their subsidiaries, affiliates and other legal entities affiliated with them, in the manner and according to the list determined by the Government of the Republic of Kazakhstan947 920
— proceeds from the sale of agricultural land141 969
— investment income from Fund management*405 573 468
— the return of the guaranteed transfer from the national budget
— return target transfers from the national budget315 785
— other receipts and income not prohibited by the legislation of the Republic of Kazakhstan3 046 046
3.Use only:2 097 171 676
including:
— guaranteed transfers721 1 350 000
— target transfers370 000 000
— expenditures related to Fund management and annual external audit5 821 676
4.The Fund at the end of the reporting period, total:25 988 994 234

Note: * including investment income for the 1st quarter of 2019, according to the approved report of the National Bank of Kazakhstan for the 1st quarter of 2019 trust management by National Fund of Kazakhstan.

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