Budget - The Times Of Central Asia

Viewing results 1 - 6 of 9

Referendum

Cost of Holding Referendum on Kazakhstan’s New Constitution Estimated at $42 Million

The cost of holding a national referendum on the adoption of Kazakhstan’s new Constitution is preliminarily estimated at 20.8 billion tenge (KZT), or approximately $42 million at the current exchange rate. The figure was announced at a press conference by Mikhail Bortnik, a member of Kazakhstan’s Central Election Commission. According to Bortnik, the estimate is currently under review by the Ministry of Finance, and the final amount will be approved at a later stage. These expenses are not included in the approved republican budget for 2026; funding is expected to be allocated from the government reserve. Approximately 75% of the total sum is projected to be spent on remuneration for members of precinct election commissions involved in organizing and conducting the vote. Another CEC representative, Azamat Aimanakumov, stated that 12,416,759 citizens will be eligible to participate in the referendum. A total of 10,413 polling stations will be opened. Of these, 9,779 will be located at voters’ places of registration, while 634 will operate at temporary places of residence, including 82 polling stations abroad in 64 countries. Polling station commissions are scheduled to receive voter lists on February 22. Citizens will be notified of the time and place of voting between February 27 and March 4. Ballots are to be delivered to polling stations between March 12 and 14. March 14 has been designated a day of silence, during which campaigning is prohibited. Voting is scheduled for March 15, 2026. CEC Deputy Chairman Mukhtar Erman said that invitations to observe the referendum have been sent to relevant organizations in more than 30 countries, including European and American states, leading Asian countries, and members of the Commonwealth of Independent States. Separate invitations to international organizations will be issued by the Ministry of Foreign Affairs. Accreditation of foreign observers will close on March 9. The draft of the new Constitution has been published on the website of the Constitutional Court of Kazakhstan. Under Article 94 of the draft, if approved in the referendum, the new Basic Law will enter into force on July 1, 2026, and the current Constitution will cease to have effect on the same date. The Times of Central Asia previously reported that work on the draft Constitution was being conducted on an accelerated timetable, after President Kassym-Jomart Tokayev announced a package of political reforms, including a proposal to transition to a unicameral parliament.

Future Games

Future Games 2026 in Kazakhstan Face Possible Delay Over Funding

Kazakh MP Sergey Ponomarev has proposed postponing the third edition of the Future Games, currently scheduled to be held in Kazakhstan in the summer of 2026, citing fiscal constraints. The Future Games are international competitions that combine traditional sports with their digital counterparts, with overall results determining the winners. The inaugural event took place in Kazan, Russia, in early 2024. The second edition, originally planned for Kazakhstan in 2025, was moved to the United Arab Emirates after the Kazakh government redirected funds to flood recovery efforts. The UAE is now set to host the event in December 2025. Speaking at a plenary session of the Mazhilis, Kazakhstan’s lower house of parliament, Ponomarev submitted a formal request to Prime Minister Olzhas Bektenov urging the postponement of the 2026 event. He estimated the cost of hosting the Games at 62 billion tenge (approximately $115 million), warning that such expenditures may not be prudent amid current budgetary pressures. “In 2024, the national budget posted a shortfall of 570.8 billion tenge (over $1 billion). Given the economic circumstances, it is worth questioning whether such large-scale spending in 2026 is appropriate,” Ponomarev stated. He noted that the estimated cost is equivalent to building at least six new schools. The lawmaker stated that postponing the tournament would not diminish its importance for Kazakhstan’s IT sector or international reputation but would allow more time to prepare under better conditions. “We are confident that our partners will understand, and that the Head of State will support this decision,” he said. The government has not yet issued an official response. As previously reported by The Times of Central Asia, the 2026 Future Games in Astana are expected to draw more than 1,500 athletes from nearly 100 countries, competing in 13 physical disciplines. The total prize fund is projected at $10 million.

Education

Frequent Textbook Revisions Cost Kazakhstan Over $32 Million, Audit Reveals

Frequent reissues of school textbooks have cost Kazakhstan’s state budget more than 16 billion KZT (over $32 million) in the past five years, according to a report by the country’s Supreme Audit Chamber (SAC). “Reforms in educational standards are being carried out unsystematically. Frequent changes in curricula have led to revisions of already issued textbooks and inefficient budget expenditures. Over the past five years, economic losses due to textbook revisions have exceeded 16 billion KZT,” the report stated. Supreme Audit Chamber head Alikhan Smailov explained that the criteria for evaluating textbooks have changed about 12 times in recent years, leading to repeated reprints of secondary school textbooks at the state’s expense. In 2023, the Ministry of Education updated textbooks for third, fifth, seventh, eighth, ninth, tenth, and eleventh grades, affecting 14 subjects as well as curricula for children with special educational needs. As a result, budget funds were allocated for the purchase of nearly 20 new textbooks aligned with the revised program. Since 2023, a regulation has been in place requiring publishers to cover the cost of reprinting textbooks but only in cases of printing defects or deviations from the approved version reviewed by the expert commission. When changes are made to school curricula, the government remains responsible for financing new textbook editions. The Supreme Audit Chamber believes that many of these revisions stem from deficiencies in the initial expert review of textbooks. Moreover, the expertise process is still not conducted through the public service monitoring system, which would allow for better oversight of its effectiveness. The audit revealed further inefficiencies in budget planning for schools, identifying: 62.4 billion KZT ($126 million) in misallocated funds 1.1 billion KZT ($2.2 million) in financial violations 3.2 billion KZT ($6.4 million) in misuse of public funds One example cited was discrepancies between the Ministry of Labor’s teacher demand forecasts and the actual needs of the education system when allocating funding for teacher training programs. Auditors also found that 66 schools across Kazakhstan, both public and private, were operating without valid licenses for educational activities. Additionally, only 18.2% of schools pass their certification on the first attempt, highlighting systemic weaknesses in school administration. The report also noted serious deficiencies in teacher training, retraining programs, and methodological support for educators. “We have increased financing for secondary education more than threefold in recent years. Given this, the state expects better outcomes from these investments,” said SAC head Smailov. As The Times of Central Asia previously reported, one in ten Kazakh emigrants cites the pursuit of better education, both for themselves and their children, as a key reason for leaving the country.

State Budget

Kazakhstan Explores Budget Cuts and Tax Reforms with Input from Elon Musk

Kazakhstan is exploring ways to optimize its state budget, drawing inspiration from recent U.S. reforms. Deputy Prime Minister and Minister of National Economy Serik Zhumangarin revealed that Elon Musk, head of the newly established U.S. Department of Government Efficiency (DOGE), has offered assistance in implementing similar measures in Kazakhstan. According to Zhumangarin, Musk proposed helping the government identify potential cost-cutting areas, though he acknowledged that reducing social expenditures would be challenging. He welcomed Musk’s input, suggesting the formation of a working group to assess possible savings while ensuring that cuts do not negatively impact ordinary citizens. The discussion on budget efficiency comes as Kazakhstan prepares for tax reforms, including raising the value-added tax (VAT) from 12% to a proposed 16-20% and lowering the revenue threshold for VAT registration from 78 million KZT to 15 million KZT ($150,000 to $29,000). Officials estimate the changes could generate an additional 5-7 trillion KZT in revenue. However, the proposed reforms have met resistance. A petition argues that lowering the VAT threshold will disproportionately burden small and medium-sized enterprises (SMEs), forcing them to hire additional staff and leading to price increases. Some lawmakers have also warned that raising the VAT rate could drive inflation higher. Senate Speaker Maulen Ashimbayev has urged the government to reassess budget efficiency before implementing tax hikes, pointing to the U.S. model, where the Department of Government Efficiency is working to cut wasteful spending. While he does not advocate blindly following the U.S. approach, Ashimbayev believes Kazakhstan should consider similar measures as it debates tax increases and fiscal responsibility. As previously reported, Kazakhstan’s Ministry of National Economy had proposed reducing the number of taxes in the country by 21% a year ago.

Finance

Kyrgyzstan Proposes Banning Foreign Currencies in Domestic Transactions

Members of Kyrgyzstan's Parliament, the Jogorku Kenesh, have proposed that the national currency, the som, be established as the only means of payment in the country. The draft bill establishes that the som must be used in all domestic transactions, except for those related to export and import. It is seen as a step to reduce Kyrgyzstan's dependence on foreign currency, and stabilize the country's financial system. The draft law emphasizes that using foreign currencies -- especially in real estate, vehicle purchasing, and lending transactions -- creates additional risks for citizens. Sharp fluctuations in exchange rates make it more difficult for borrowers to repay debts. Similar measures have also been taken in Turkmenistan, where using foreign currency for everyday payments is almost entirely outlawed. Iraq has banned all domestic transactions to strengthen and stabilize the local currency, the Iraqi dinar.

Economy

Fight Against Corruption Allows Kyrgyzstan to Increase State Budget

The head of the Kyrgyz Cabinet of Ministers, Akylbek Japarov, has said that thanks to the fruitful work of the government, “a new era in the financial sector of the Kyrgyz Republic has begun.” During a conference, which was attended by ministers, deputies, officials of various levels, representatives of the World Bank, Asian Development Bank, and other international organizations, Japarov spoke about the new monetary policy. According to him, in 2020, the consolidated budget amounted to 247.8 billion KGS ($2.8 billion), whereas in 2024, the budget is estimated at 670 billion KGS ($7.6 billion). In four years, the authorities were able to increase the state budget by almost 400 billion som ($4.5 billion). “The reason for such achievements was the elimination of corruption. The main disease was the Kumtor deposit. Dividends received from it from 1994 to May 2021 amounted to $100 million. Over the past two and a half years, we have made a profit of $300 million,” Japarov said. The head of the Cabinet emphasized that Kyrgyzstan's GDP has reached 1.4 trillion som ($15.9 billion), while at the time of the collapse of the USSR and independence, the republic's GDP was only 100 million som ($1.1 billion). “The growth of state budget revenues has become a solid basis for the implementation of policies to improve the socioeconomic situation of citizens,” Japarov summarized.