Ministry of Finance

and International Ratings

148 countries)

155 countries)

@mf_kz

2008 2009 2010 2011 2012 2013

6152

3926

18

Rate – 28,6% (-12,5%)

Number of payments– 7 (-2)

Time – 188 hours (-82 hours)

Indicator «Taxation» of

«Doing Business» rating

Positive result is achieved by:

Amendments to Tax Code

Start of Web applications «Taxpayer cabinet»

Tax form reduction

Introduction of Tax account processing system (TAPS)

establishment of data utilization center (DUC)

Ticket system introduction into DUC

E-services expansion

TF

@mf_kz

2

Global Competitiveness Index «State debt»

2007 2008 2009 20122010 2011 2013

@mf_kz

3

4

13 %

107 %237 %

171 %

11 %

Note: data for October, 2012.

State debt to GDP, in %

38 %

91 %

22 %

@mf_kz

4

2008 2009 2010 2011 2012 2013

100

54 49 55 55 54

Term – 1,5 years

Expenditures – 15 %

Debt recovery– 43,2 % (+2,6)

INDICATOR «SETTLEMENT OF INABILITY TO PAY» of

«DOING BUSINESS» RAITING

accelerated procedure introduction of and of rehabilitation procedure improvement

in administrative barriers reduction

creditors rights expansions

introduction of cameral control on identification of the deliberate and false bankruptcy

Improvement of a position is reached by a way:

54 places

from 180

countries

@mf_kz

5

Budget transparency progress

2008 2010 2012

35 3848

Done work:

• publication of civil budget in

the format clear, intelligible

segment of the people

• explanations in info

graphic look

Index of budge transparency (OBI) is made by the International budgetary partnership

OBI purpose – assessment of public availability of budgetary information, reflection of degree of

involvement of society into the budget process and its social orientation

3places

among

CIS

Further work on increase of budget transparency:

• draft budget publication for a public review

• publication of frequently asked questions at report discussion in Parliament

• forum development

• feedback:

forum, twitter, Facebook

@mf_kz

6

2008 2009 2010 2011 2012

106107 102

7775

SQI EFF indicator

«Customs duties burden»

Positive result will reach as a result:

reductions of the list of obligatory documents to 3 (three) main documents

introduction and AEB institute improvement

reductions of terms of registration due to use of automated RMCS

introductions of integrated customs control on border

abolition of institute of licensing in activity of customs authorities@mf_kz

7

Indicator «Ratio of auditing and reporting standards»

Done work:

legislation change according to recommendations within ROSC

creation of Depositary of financial statements for the organizations of public interest

introduction and distribution of IFRS and MSA, IFRS for PMSB

Training, seminars, round tables, the approval of the National standard of financial statements for support of small business

Planned measures on

indicator improvement:

changes of system of

regulation of auditor activity

on the principles of

requirements of the

International federation of

accountants, European

directives

introduction of self-

regulation and cancellation of

licensing of auditor activity

@mf_kz

8

2009 2011 2013

Strategic objectives: Achievements

STATE DEBT DEDUCTION AT ACCEPTABLE LEVEL

IMPROVEMENT OF QUALITY OF TREASURY SERVICE

EFFICIENCY OF BANKRUPTCY AND IMPROVEMENT

MANAGEMENT OF STATE PROPERTY

INTERNATIONAL COOPERATION AND INTERNATIONAL LEGAL ACTIVITY

@mf_kz

RK NATIONAL FUND NCREMENTS OF ASSETS

We reached :1111

1

ENSURING LOAN GRANTING FROM THE REPUBLICAN BUDGET

9

10

4,4Trillion

tenge

RB Deficiency

2013 – 2,1% to GDP

GS Issue for 2013 –

982,5 billion tenge

GS Buyers in 2013:

NPF - 512,9 billion tenge

indexed to inflation – 240,9 billion tenge

short-term – 6,3 billion tenge

medium-term – 37,7 billion tenge

long-term – 228,0 billion tenge

Banks – 227,5 billion tenge

short-term – 85,8 billion tenge

medium-term – 71,5 billion tenge

long-term – 70,3 billion tenge .

Other - 242,1 billion tenge

indexed to inflation – 151,0 billion tenge

short-term – 16,8 billion tenge

medium-term – 35,0 billion tenge

long-term – 39,3 billion tenge

Direction: STATE DEBT DEDUCTION AT ACCEPTABLE LEVEL

Indicator of state debt is in a zone of admissible

values. State debt limit for the HARDWARE countries –

50% GDP EU – 60%GDP.

Debt burden (service/income):

Fact 9,7% Limit 10-15%

13,2%

Internal debt

of GRK

3,6 trillion

tenge

Internal

debt of GRK

0,8 trillion

tenge

Debt of LG

and NB

0,02 trillion

tenge

State debt / GDP

@mf_kz

in%

GD

P

11

Effect for economy

Expenses reduction on loans

Trade activization in domestic market

Pressure decrease on liquidity of domestic market

Standard creation for the Kazakhstan companies

Direction: STATE DEBT DEDUCTION AT ACCEPTABLE LEVEL

Realization mechanism

GS integration by repeated issue

Issue of eurobonds in capital foreign markets

Task

Domestic market activisztion

Financing of deficiency of republican budget in full

@mf_kz

Index2013,

billion tenge

Revenue 3 432,3

Use 1 412,0

The rest on

01.01.2014г.

(operational data,

without taking into

account on

invested income)

12 466,8

Relation of the RK National fund to GDP for 2010-2013.

The purpose – finishing of assets of RK National fund by 2020 to level not less than 30% to GDP

189.8

12,466.8

0

5000

10000

15000

2001 2005 2009 2013

Funds of the National Fund of the Republic of Kazakhstan (2001-2013), billion tenge

Direction: FORMATION AND USE OF ASSETS OF NATIONAL FUND

OF THE REPUBLIC OF KAZAKHSTAN

@mf_kz

12

2010

NF

26,5

% 2013

value

NF

36,2

%2012

NF

34,7

%2011

NF

29,3

%

13

LOAN GRANTED FROM THE REPUBLICAN BUDGET IN 2013

61,8billion tenge

60,0billion tenge

Support of subjects of agrarian and industrial complex- carrying out spring field and harvest works;working capital financing purchase of agricultural productionrefinancing of obligations for the loans attracted on purchase of agricultural production;- microcredit organizations

- Business in monotowns"With the diploma to the village"Microcredit within the Employment 2020 ProgramConstruction and housing acquisition within the Affordable Housing 2020 Program

Local Governments

Credit portfolio on 01.01.2014 –

464,3 billion tenge

Loans –

117,2 billion tenge

@mf_kz

13

121,8 billion tenge

14

Direction: RESTORATION OF SOLVENCY OF THE COMPETITIVE ENTERPRISES

(IMPROVEMENT OF THE LARGE ENTERPRISES)

The program of post-crisis restoration

(improvement of competitive enterprises) for

2011-2016 is approved by the Resolution of

GRK dated March 4, 2011 No. 225.

Reception of applications for participation in the

Program is finished on April 1, 2013.

63 companies are recognized by

participants of the Program, practically from all

regions of Kazakhstan and representing a wide

range of branches of economy.

Subsidies from RB:It is paid:

2011-2013 – 18 billion tenge

It is put:

2014-2016 – 57,6 billion tenge

The output of products, the

performed works and services:- for the beginning of implementation of the plan

of rehabilitation of 253 billion tenge

- for the end of implementation of the Program –

397 billion tenge

EFFECT by the end of 2016:

keep 17,7 thousand workplaces,

tcreate 5,5 thousand workplaces

satisfy 160,2 billion tenge of debt or

for 51%, thereby to improve quality of

assets of second –tier- bank

@mf_kz

0

50

100

150

200

250

300

350

2013 2014 2015 2016for the begining

of subsidies

4

8

9

2011 2012 2013

2013 – 54 places

(2012 – 55)

1 among CIS

The new Law in the

sphere of rehabilitation

and bankruptcy

is directed on:

preservation and

business development

prevention of a

conclusion of the property

received by an illegal way

increase of collection

of debt by the creditor

decrease in expenses

for carrying out procedure

of bankruptcy

186

It is involved

in rehabilitation in

2013

Repayment coefficient

of creditors requirements

It is liquidated in

2013

Direction: BANKRUPTCY EFFICIENCY

@mf_kz

15

Direction: IMPROVEMENT OF QUALITY OF TREASURY SERVICE

@mf_kz

16

17

Direction: STATE PROPERTY MANAGEMENT

• Subjects of municipal property + 1090

- public institutions + 451

- state enterprises + 368

- Joint stock company, LLP with state

participation + 271

In comparison with 2010 the number of subjects of quasi-public sector

and public institutions grew on 1358, including:

• Subjects of republican property + 268

- public institutions + 287

- state enterprises - 40

- Joint stock company, LLP with state

participation + 21

@mf_kz

15 620

PI municipal

505

LLP

3 436

PI republican

5 647

SE municipal

205

JSC

289

SE republican

Total in

2013

25 702 subjects

18

The local governments sold:

- 20 state shares

- 12,7 thousand sq.m. of the

excessive areas

- receipts from sale made – 393,6million tenges

The Ministry of Finance sold:

- 3 state shares

- 0,7 thousand sq.m of the excessive

areas

- receipts from sale made – 345,4million tenges

It is recommended to privatize

Municipal property:

151 subjects of the quasi-public sectors

224 thousand sq.m. of the excessive areas

Republican property:

10 subjects of quasi-public sector

37,5 thousand sq.m. of the excessive areas

FIRST STAGE of PRIVATIZATION (2013-2014)

IMPLEMENTATION OF DECISIONS OF THE COMMISSION ON QUESTIONS OF

OPTIMIZATION OF SUBJECTS OF QUASI-PUBLIC SECTOR AND OBJECTS OF

THE STATE REAL ESTATE

Measure accepted as of today

@mf_kz

19

State

functions/services

No

competition

Safety

State

programmes

STATE PROPERTY

PARTICIPATION IN DEVELOPMENT OF THE COMPREHENSIVE

PROGRAM OF PRIVATIZATION FOR 2014-2016

Mechanisms of

reduction of state

participation:1) Auction;

2) Commercial

tender;

3) Trust management

(with the right of the

subsequent

repayment);

4) Stock exchange;

5) Additional

emission

6) Trust management

(without the right of

the subsequent

repayment);

7) Rent;

8) Reorganization by

merge;

9) Elimination.

Criteria of preservation in state ownership

of subjects of quasi-public sector

@mf_kz

20

№ Proposed Sq.m. Performed Sq.m.

1 under social objects 107 000 transferred 22 300

2 on privatization 262 000 sold 13 500

3 for SI and SE placement 91 000 placed 44 200

Total exessive areas : 460 000 80 000

RESULTS OF AUDIT OF THE STATE REALE STATE OF REPUBLICAN

PROPERTY IN 18 456 STATE LEGAL ENTITIES

@mf_kz

The Ministry of Finance jointly with local executive bodies

revealed

520 thousand sq.m of the excessive areas

60 thousand sq.m. aren't

coordinated and will be

considered at Commission

meeting

The commission on questions of optimization of

subjects of quasi-public sector and objects of the

state real estate approved audit results

on 460 thousand sq.m of the excessive areas

INTERNATIONAL COOPERATION AND INTERNATIONAL LEGAL ACTIVITY

OF THE MINISTRY OF FINANCE OF PK IN 2013

16 agreements were signed

37 agreements were developed

IFO(12)

Foreing state (8)

Agglomerative tendencies (2)

Borrowing (2)

Financial inteligence (2)

Customs (1)

Tax (1)

General cooperation (3)

In spheres

Signed (9) and ratified (13)

international contractsCooperation with IFO

Membership dues in

2013.

received investments in

2013, mln. dollars of the USA

ADB $ 496 million

EBRD 500

EDB 114

IBRD 23

IBD

IDA

5,5

0,8

7,8

0,9

Fees

Investments

21

@mf_kz