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Dear deputies and Party members
«Nur Otan» party, its faction in Majilis together with the Government
have been actively cooperating together for the past 4 years
resolving the tasks on social and economic development
and prosperity of Kazakhstan set by our President Nursultan Nazarbayev.
The President’s Addresses to the Nation and the People’s Platform of the Party
defined directions of the key socio-economic reforms during these years.
Today the entire country is preparing to celebrate 20th anniversary of Independence
and evaluating its achievements
On the threshold of this anniversary
we will sum up the results of our joint efforts
on improvement of the life of Kazakhstanis
It is obvious that we have reached progress
The GDP growth in Kazakhstan has been consistently positive since 2007.
Kazakhstan managed to ensure a 1.2% increase in the GDP
even during the peak of the global financial crisis in 2009
For instance, the economic decline in the USA made 2.6% in 2009 even during the peak of the global financial crisis in 2009
For instance, the economic decline in the USA made 2.6% in 2009
in Russia – 7.9%, in Ukraine – 15.1%
Presently, Kazakhstan is currently among the middle-income countriessuch as Brazil, Malaysia and Turkey
The country’s GDP of 2010 exceeded 148 billion US dollars
which is twice more than total GDP of other four Central Asian countries
The income of Kazakhstanis has been significantly increased.
The share of the people with below minimum wage reduced two times to 6.5% in 2010
The average salary of a public sector worker increased more than two times,
it exceeded KZT 67 thousand since July 1, 2011
The increase of income and volume of deposits of the people in the second tier banks demonstrate the positive trend
It topped KZT 2.5 trln in July 2011 increasing by 1.5 trln comparing to January 2007
We have ensured high level of employment of the population.
The unemployment level reduced from 7.3% in 2007
to 5.4% in the second quarter of 2011
the youth unemployment reduced from 9.4% in 2007 to 5.2% in 2010
Around 1 million and 170 thousand new jobs have been created
We are implementing the Housing Construction Program
19.7 mln sq meters of housing was put into service
within the State Program on Housing Construction in 2008-2010
About 535 thousand Kazakhstanis improved their living conditions
The social protection system has been significantly developed.
The average pensions made KZT 27 665 increasing 2.6 times compared to 2007.
The lump-sum allowance for childbirth has been increased two times (to 30 MCI) since January 1, 2008
The child care allowance was increased 2.6 times
The allowance for the fourth and each subsequent child was raised 4.6 times against 2007.
The work on improvement of the infrastructure and education quality is constantly conducted
The education expenditures increased twofold
and would exceed 898 billion tenge in 2011 compared to 2007
The pre-school education institutions network was expanded by 4000 facilities
137 new kindergartens were built
65 more kindergartens are planned to be put into service by yearend
343 schools and 49 vocational and technical education institutions have been built since 2007.
25 schools and 3 vocational and technical schools will be put into operation till the end of the year.
Teachers’ salaries have been steadily raised.
The fixed official salaries increased by 25% in 2009-2010 and by 30% in 2011.
The bonuses for teachers holding qualification category as well as
bonuses for masters of vocational training have been introduced since September 1, 2011
In accordance with the UNESCO’s report, Kazakhstan was ranked 4th
among 129 countries in terms of Education Development Index.
We continue the work on the healthcare improvement.
The healthcare expenditures were increased twofold in 2011
and made 640 billion tenge compared to 2007
About 100 billion tenge was allocated to healthcare organizations for purchasing modern equipment
The construction of 145 healthcare facilities has been completed.
The guaranteed volume of free medical care was essentially expanded
Treatment of viral hepatitis “B” and “C”
screening tests, socio-psychological consultations
in vitro fertilization made the list as well.
In 2011, the maternal mortality rate decreased by 63%
while the child mortality rate – by 26% compared to 2007.
The complex measures that were taken allowed to increase the life expectancy
from 66.4 years in 2007 to 68.4 in 2010.
A new model of science development is introduced
In 2011, the research financing was increased 1.8 times against 2007
5 national research laboratories and 15 engineering laboratories in the higher education institutions have been established
The new Law “On science” laying foundation for establishing competitive national innovative system was adopted
The Nazarbayev University and a network of the Intellectual Schools have been established to develop innovative potential of the country.
The work on establishment of the world-level vocational and technical colleges network was started.
We're promoting the consistent development of small and medium businesses
In this regard, the small and medium business’s share in the country’s GDP exceeded 30% in 2010.
Summing up the result,
I believe we can speak about successful fulfillment of the key parameters of the People’s Platform of the Party,
despite the fact that it was formulated in the safe pre-crisis time of time
and implemented under conditions of the global crisis.
Kazakhstan was one of the first countries to be affected by the crisis
and one of few to take timely and effective anti-crisis measures
The energy of our Leader, his unique ability to foresee the future
our teamwork in the centre and in the regions of the country
prevented economic collapse and preserved social peace.
As you know, over KZT 400 billion was allocated from the national budget in 2007-2008
for completion of the construction of housing facilities
KZT 190 bln was allocated through the second tier banks,
KZT 142 bln - for implementation of small and medium business projects
and KZT 75 bln for provision of food security.
In all the regions of the country we set up stabilization funds for basic food items
such as grain, meat, powdered milk, oil, sugar and rice.
Great work on ensuring food security was done
including signing of memorandums with producers of basic food.
As the result of the conducted work the food funds were established
and the inflation had been taken under control.
In 2008 the collapse of banking operations in the US caused the second wave of financial crisis
and spread all over the world
affecting the financial system first and then the economy.
Three backbone banks of Kazakhstan appeared to be in a very difficult situation
and one of them being involved in criminal fraud closed default
The bankruptcy of these banks meant the collapse of the whole financial system
and the real sector of economy.
The country’s economy was approaching recession
that would be equal to economic collapse of early 90ies.
In accordance with our estimation,
so rapid decline of economic development
could lead to increase of the number of unemployed people to 1 million in early 2009.
Joint action plan of the Government of Kazakhstan
National Bank and Agency on regulation of financial market and financial organizations
on stabilization of economy and financial system for 2009-2010
and the strategy of regional employment and specialists retraining
Employment Road Map became our response to the challenges
On the decision of President of the country Nursultan Nazarbayev
over KZT 1.5 trln was allocated from the National Fund for anti-crisis program
As the result we had a stabilized financial sector
The second tier banks were provided with additional source of liquidity
that allowed to release funds amounting to KZT 490 bln for the needs of economy in 2009-2010.
Additional capitalization of BTA Bank, National Bank,
Kazkomertsbank and Alliance banks was ensured
The capitalization amounted to KZT 486 bln. in exchange of State participation
In order to ensure high safety of the bank savings of the citizens
the amount of deposit guarantee compensation of individuals
was increased from 700 thousand to KZT 5 mln.
Besides, in order to ensure stability of the financial system
the restructurisation of BTA Bank, Alliance Bank and Temir Bank was complete by the fall of 2010.
Moreover, we have solved the key issues on the real estate market.
KZT 440 bln was allocated for protection of equity construction participants
including KZT 290 bln from the National Fund.
The commissioning of housing on 389 facilities
resolved the issues of 53 thousand equity holders.
Thanks to refinancing of mortgage loans
32 thousand of borrowers received the opportunity
to pay the mortgage 30% less than before.
KZT 162 bln was allocated for support of small and medium business.
In whole, the second tier banks have financed more 10 thousand SMEs since the crisis began
KZT 120 bln was allocated for development of agriculture additionally to budget from the National Fund.
Thanks to our joint work and constant control the implementation of a number of investment projects was provided
including establishment of dairy farms, green houses, feed lots, poultry farms
meat processing facilities, grain and vegetable storages and assembly of agricultural machinery
The credits to enterprises of the agro-industrial complex
with low interest rate were extended.
The cheaper priced fuel and lubricants are offered to agricultural producers annually.
KZT 342.7 bln was allocated for implementation of the strategy of regional employment and specialists retraining in 2009-2010.
More than 640 thousand people took part in the Employment Road Map in 2009-2010,
150 thousand people were sent to professional development courses
and 100 thousand people were sent to youth practical courses
The local executive bodies have implemented 8880 projects so far
and created 392 thousand jobs.
Almost one forth of all schools have been repaired and reconstructed
774 healthcare facilities, 1535 objects of housing utilities were repaired or constructed as well.
5 thousand km of roads underwent capital repairs or reconstruction
The running repairs were held on the roads of 3 thousand km length.
As the result, the GDP increase made 1.2% in 2009 and 7.3% in 2010.
The external debt of the Kazakhstan banking sector reduced
from $46 billion in December of 2007 to $16.6 billion in March of 2011 The external debt of the Kazakhstan banking sector reduced
from $46 billion in December of 2007 to $16.6 billion in March of 2011
The external debt of the second tier banks
was also reduced by $29.4 billion
Even in crisis we multiplied the resources of the National Fund
It was our joint policy
The assets of the National Fund have grown
from $14.7 billion in January, 2007 to $40.3 billion in August this year
This historic fact proves the genius of foresight of our Leader, the organizational power of the party
the will of the Parliament and Government working for the prosperity of Kazakhstan
and well-being of Kazakhstanis
Gross reserves of the National Bank and assets of the National Fund
reached $76.3 billion in August of 2011
Along with the anti-crisis measures we continued the implementation
of the institutional and economic reforms
A new tax code was developed
Tax rates of the main taxes were reduced for all legal entities
corporate income tax was reduced from 30% to 20%
and value - added tax from 13% to 12%.
These measures resulted around KZT 800 bln of free funds for entrepreneurs in 2009-2010.
The tax burden on the raw material sector was intensified
it increased by 30% in oil sector.
New special payments of subsurface users were introduced
Mineral Extraction Tax, rent tax on the crude oil, excess profit tax.
It allowed to increase the income into the National Fund
that amounted to almost KZT6 trln in 2010 or 126.5% increase compared to 2009
The stability of tax and customs regulations for all subsoil contracts
were abolished except the Production Sharing Agreements concluded earlier.
This kind of agreement was abolished in 2009
The tax procedures were simplified
and the effectiveness of the tax administration was increased
The volume of presented in electronic format tax reporting reaches now 80%.
Kazakhstan ranked 39th in the World Bank’s ‘Doing Business’ rating
in terms of taxation and 1st among the CIS states in 2010.
We are being consistent in fulfilment of the tasks
set by the President on for formation of a new model of public administration
based on the principles of corporate administration,
productivity, transparency and accountability to society.
We have already developed the three-year budget
in accordance with the new Budget Code
and strategic plans of state bodies and optimized the program documents
The state bodies are given great autonomy in budget resources management
but we are introducing a comprehensive system of annual performance evaluation
of the central government and local executive bodies.
Our goal is to achieve the best results
at the least cost using effectively every tenge of the public funds.
We have essentially improved the business climate
This year alone, 331 licensing procedures out of 1015 existing were reduced
The “one window” principle of issuing licenses was introduced
The mechanism defining inspections frequency on the basis of the risk management system
was legislated in order to regulate the activity of the state bodies
Since January 1, 2010 the price offering method of public procurement
is carried out in the electronic format
Since June 1, 2012 the procurement organized through a tender or an auction
will be carried out in the electronic format as well.
In 2010, the World Bank recognized Kazakhstan
as the world leader in business climate improvement.
Having overcome the crisis period and realized our new opportunities
in the context of a new world economic order
we confidently entered the post-crisis recovery and development period
the main parameters of which were outlined by our President
in the Strategic Development Plan of Kazakhstan till 2020.
Let me brief you on the preliminary results of implementation of programs
that have been adopted in pursuance of the strategic development goals in the current decade.
The State Program of Forced Industrial-Innovative Development
was successfully launched in 2010.
227 projects totalling 914 billion tenge were put into operation by the end of the first half of 2011.
29 thousand permanent jobs were created.
Products totalling over 100 billion tenge have been manufactured.
Another 129 projects amounting to KZT617 billion are planned to be launched in the second half of the year.
It will allow to create 14.5 thousand new jobs.
The big infrastructural projects are being implemented
such as the construction of Balkhash Thermal Power Plant
“West Europe – West China” road, “Zhetygen – Korgas” railway lines
“Uzen – state border with Turkmenistan”, “Beineu – Bozoi – Akbulak” gas pipeline,
development of “Seaport Aktau” Special Economic Zone
establishment of “Horgos – East Gate” Special Economic Zone
There has been a growth in the innovative enterprises for the first time after a slowdown of the recent years.
Expenditures of companies on technological innovations
increased twofold and reached 219 billion tenge.
The Business Road Map – 2020 renders assistance to over 600 enterprises
with the total number of employees over 67 thousand people
More than 14 thousand new jobs are yet planned to be created
131 projects are implemented in the agro-industrial complex
98 projects – in the light industry and furniture production
78 projects – in the metallurgy, metalwork and engineering
This year we started implementation of education and healthcare development programs approved by President
laying foundation for social modernization.
The Education Development Program will help to establish an education system ensuring creation
of competitive high-quality human capital
New generations of highly educated Kazakhstanis
will be able to successfully deal with the challenges of the future decades
Within the Balapan program it is planned to increase providing children
with preschool education to 70% by 2015, and to 100%. by 2020
Through this program, coverage of preschool education increased from 30% in 2010 to 55.6% in 2011.
The work on ensuring 90% use of the e-learning system,
transition to 12-year schooling model
and increase of the number of Intellectual Schools
in all regions of Kazakhstan is conducted in the secondary education sphere
Fundamentally new education standards which are subsequently distributed to all schools across the country
are being developed on the basis of Intellectual schools in conjunction with the University of Cambridge
It will allow to build up one of the best secondary education systems in the region by 2020
JSC “Kasipkor” Holding” was established in order to develop the network of the world level colleges
jointly with the business community and leading education institutions
of Singapore, Germany and the Netherlands.
Nazarbayev University has been running for two years, it is designed to become Kazakhstan’s national brand
combining both advantages of the national education system
and the world best scientific and educational practice
The University is working in partnership with the best universities
which are among the top 30 world universities.
The first enrolment students have already started their training for undergraduate program
at the three schools of the University - engineering, science and technology and social science
Educational programs meeting the international standards
new standards of scientific research and principles of academic freedom
tested in the Nazarbayev University will be introduced
in all higher education institutions of the country.
The State Program of Healthcare Development till 2015
aims at strengthening the Unified National Healthcare System
through improvement of management, efficiency of use of budget funds,
increase in affordability and improvement of quality of pharmaceuticals
and strengthening of preventive measures
554 thousand patients used their right to choose the hospital for planned hospitalization in 2010
31 thousand of them changed their hospital.
The competition between the healthcare organizations for patients
will finally improve the quality of healthcare services.
High-quality healthcare became more affordable for people.
123 technologies have been transferred in the regions
The hospital-replacing technologies are developing
ensuring effective use of budgetary funds
For instance, the treatment in day hospitals is four times cheaper
for the country than the treatment in other hospitals
The number of patients treated in hospital-replacing conditions
increased to 826 thousand people in 2010.
This is around 2.5 times more against 2009
The wages fund is raised.
Differentiated payment to health workers
depending on the final result is introduced.
In 2011 we started implementation of the Languages Development Program
18.3 billion tenge will be allocated for it by 2014.
In pursuance of the President’s tasks on
ensuring stable employment of the people of Kazakhstan
the Government approved the Employment Program 2020
Over 50 thousand people are planned to be embraced under this program in 2011.
The number of involved population will reach 1.5 million by 2016
The Program’s implementation should result in reduction of poverty level from 8.2% to 6%.
Totally, 24.3 mln sq m of housing is expected to be put into operation
service within the Housing Construction Program for 2011-2014.
248.2 billion tenge was already invested from all sources of financing for housing construction
in January-August 2011. 3.6 mln sq m of housing was commissioned
3.6 mln sq m of of the total housing area have been put into operation
within the Housing and Utilities Modernization Program for 2011-2020
over 81 thousand of heat, electricity and gas supply networks are planned to be repaired.
due to establishment of a new model of housing relations
and special and special co-financing arrangements 11,624 houses will be repaired
We started implementation of “Ak Bulak” Program in May this year
The main purpose of it is to provide 80% of rural population
and 100% of urban population with the access to central water supply network
To implement the main socio-economic programs
a new draft national budget for 2012-2014 has been defined
and I would like to outline some of them
Over 1.6 trillion tenge is provided for realization
of the State Program on Forced Industrial-Innovative Development.
In particular, over 100 billion tenge will be allocated for the Business Road Map – 2020
20 billion tenge – for the Productivity Program 2020
51 billion tenge is planned to be allocated from the national budget
for implementation of the Employment Program.
The expenditures on education and science will amount to 1132 billion tenge in 2012-2014
Thus, 283 billion tenge will be spent for the State Education Development Program
The healthcare expenditures are expected to reach 1303 billion tenge in 2012-2014
233 billion tenge will be allocated for implementation
of “Salamatty Kazakhstan” National Healthcare Development Program.
Funds totalling 949 billion tenge are to be allocated for state support of agriculture.
The key priorities here are food safety, livestock development,
veterinary safety, water economy development.
Over 400 billion tenge is planned to be allocated
for housing construction and housing and utilities modernization
238 billion tenge will be spent for water supply
and water waste disposal systems development, inspection of water systems
and waterworks, exploration works within “Ak Bulak” Program
The positive trends in economic development allowed us
to adjust the parameters of the national budget for 2011.
The draft refined budget was submitted for your consideration
The presented budgetary documents lay solid foundation
for execution of all instructions of the President
on economic development under new conditions.
Dear Deputies,
As I have already said, Kazakhstan entered the group of middle-income countries.
The next task set by our President is to join the group of high-income countries
Therefore, the per capita GDP should reach 15 thousand US dollars.
We plan to achieve this indicator by 2016.
In order to become a member of the club of developed countries
it is necessary to establish close cooperation with the world leading economies
allowing to adjust the Kazakh legislation and state regulation to the international standards. it is necessary to establish close cooperation with the world leading economies
allowing to adjust the Kazakh legislation and state regulation to the international standards.
Following the President’s instructions the Government of Kazakhstan has began the work
on accession to the Organization of the Economic Cooperation and Development
Today the OECD is one of the most prestigious organizations in the world
where the best management experience in all areas of socio-economic development are accumulated
Dear Party members,
These are the main results of implementation of the People’s Platform of “Nur Otan” Party and new plans for the future.
We have precise action strategy for the upcoming decade These are the main results of implementation of the People’s Platform of “Nur Otan” Party and new plans for the future.
We have precise action strategy for the upcoming decade
programs and resources
However, we will face new challenges in the upcoming decade which are to be reckoned with.
Last week IMF Managing Director Christine Lagarde said
that advanced economies were facing an anaemic and bumpy recovery
with unacceptably high unemploymen
The euro area debt crisis has worsened. Financial strains are rising.
Speaking of the global perspectives she said:
We are certainly living in times of great economic anxiety
the economic skies look troubled and turbulent
as global activity slows and downside risks increase
I believe there exists a possibility of recession in the global economy.
By the instruction of the President the Government has prepared an action plan
in case of negative scenario of economic development
as long as there are signs that a new global recession may arrive.
We are ready to face new challenges
and know from experience We are ready to face new challenges
and know from experience
is how successful the decisive collective efforts can be
We - the Government an the National Bank - appealed to you
to Nur Otan Party members, to the Parliament
you always supported us and we together resolved difficult issues
in order to fulfil the of our President
I do not exclude that in a case of the world recession we will appeal again
and in practice we could see that our cooperated actions give positive results
We know how to overcome difficulties and are able to fulfill the tasks
set by the President for the prosperity of Kazakhstan and Kazakhstanis
Thank you for your attention.