Kazakhstan’s Ministry of National Economy has proposed a reduction in the number of state organizations and civil servants as part of broader efforts to lower government spending.
The proposal was presented on Wednesday during a session of the Mazhilis, the lower house of Kazakhstan’s parliament, as lawmakers reviewed the country’s proposed new Tax Code. The issue of fiscal efficiency and potential savings sparked debate among deputies.
“We have prepared several proposals. We will reduce the number of employees in subordinate organizations,” said Minister of National Economy Serik Zhumangarin during the session.
As part of the plan, the government is also proposing a moratorium on increasing administrative costs and halting the construction of new government office buildings.
If a particular agency demonstrates a genuine need for additional personnel, the issue will be addressed through a redistribution of existing vacancies across government bodies. “Any increase in staff in one agency should be matched by a proportional decrease in others,” Zhumangarin noted.
According to the minister, government optimization efforts in 2023 led to savings of approximately KZT400 billion (about $767 million). Furthermore, if the new tax measures are approved, including raising the value-added tax (VAT) from 12% to 16% and lowering the VAT registration threshold from KZT78.6 million to KZT40 million annually, the state budget could gain an estimated KZT2.8 trillion (roughly $5.4 billion) per year.
