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Kazakhstan to Fund Health Insurance for Over A Million Unemployed Citizens

Beginning in 2026, more than one million unemployed and vulnerable citizens in Kazakhstan will be covered by the country’s compulsory medical insurance system (CMIS). Health Minister Akmaral Alnazarova announced that local and regional budgets will assume responsibility for insurance contributions on their behalf. Expanding Access to Medical Coverage Kazakhstan’s current health insurance model requires employed citizens to contribute 2% of their monthly salary, capped at 17,000 KZT (approximately $33), to the Fund for Social Medical Insurance (FSMI). Employers pay an additional 3% of each employee’s salary, while individual entrepreneurs contribute 5% of their income. However, unemployed citizens, even if officially registered, are presently excluded from the system. In response to a directive issued by President Kassym-Jomart Tokayev in February 2024, the Ministry of Health has drafted legislation that would enable local governments to make insurance payments for unemployed and vulnerable groups. The bill was submitted to the Mazhilis, the lower house of parliament, for consideration. “This is a step towards improving people’s health and quality of life,” Alnazarova said. “Local budgets will cover the contributions, and these individuals will receive insured status on a monthly basis, regardless of income.” The change is expected to extend coverage to over one million additional citizens, granting them access to scheduled medical care. Systemic Reforms and Contribution Cap Adjustment The ministry also proposes raising the upper limit for contribution calculations from 10 to 50 times the minimum monthly wage. As of 2025, one minimum wage is 85,000 KZT (approximately $165), making the new cap 4.25 million KZT (around $8,100). The adjustment would impact approximately 9% of employees, roughly 508,000 individuals, and their employers. “In global practice, income limits are not applied. In our country, high-income earners currently pay proportionally less than others,” Alnazarova explained, justifying the reform as a measure toward fairness and sustainability. Parliamentary Scrutiny of the Insurance Fund The draft legislation has revived long-standing criticism of the FSMI's governance. During recent Mazhilis debates, MP Murat Abenov accused the fund of lacking transparency and accountability. “The SMIF checks itself, allocates funds itself, concludes contracts itself, and determines violations itself. Many infractions go unnoticed by both ministries and the public. If not for the Supreme Audit Chamber, we wouldn’t even know that billions are being embezzled,” Abenov stated during a parliamentary session. This follows earlier opposition by several MPs to a proposed 10% tax hike on medicines and healthcare services during discussions surrounding the new Tax Code.

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Kazakhstan Bans Use of Public Funds to Pay Foreign Athletes

President Kassym-Jomart Tokayev has signed a new law prohibiting the use of state budget funds and funds from the quasi-governmental sector, to finance the participation of foreign athletes in Kazakh sports clubs. Under the legislation, foreign “legionnaires” may now only be contracted using money from private sponsors. The move aims to refocus state support on domestic talent in professional sports. According to the presidential administration, athletes holding Kazakhstani passports who compete at elite levels, including in Olympic, Paralympic, Deaflympic, Asian, and national sports, will remain eligible for public funding. Funding Priorities and Implementation “The priority sports will be defined based on achievements on the international stage,” Akorda stated. These will include sports featured in the programs of major multi-sport events, along with traditional national disciplines. Budget allocations will also continue for state-run physical culture and sports organizations, grassroots sports initiatives, and the development of sports infrastructure. The final list of high-performance priority sports, along with detailed budget allocation procedures, will be finalized by the Ministry of Tourism and Sports. In addition to the funding changes, the new law introduces unified standards for athlete training and outlines measures to promote traditional values and patriotic education. A new concept, “national standards of sports training”, has been formally introduced into legislation. Financial Impact and Transition Period Deputy Minister of Tourism and Sports Serik Zharasbayev previously estimated that Kazakhstan allocates around 400 billion tenge (approximately $797 million) annually to high-performance sports through national and regional budgets. Currently, football and hockey clubs can receive up to 1.2 billion KZT ($2.4 million) per year, while basketball and volleyball clubs are limited to 450 million KZT ($897,000). The new rules, however, will not affect existing contracts, as Kazakh law is not retroactive. Nevertheless, authorities have advised clubs across all sports not to sign new agreements with foreign athletes in 2025. Potential Legal Challenges Observers note that the restrictions may conflict with Kazakhstan’s obligations under the Eurasian Economic Union (EAEU) Treaty, which guarantees the free movement of labor among member states. The move could impact the future participation of Russian and Belarusian athletes, in particular, in Kazakhstan’s domestic leagues. As previously reported by The Times of Central Asia, legal interpretations of the EAEU Treaty’s provisions may play a decisive role in how these new restrictions are implemented in practice.

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Kazakhstan Aims to Cut Civil Service to Curb Budget Spending

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.

State Budget Music Economic Impact Concert Jennifer Lopez

Jennifer Lopez to Perform in Kazakhstan – Billion-Tenge Boost Expected

American pop icon Jennifer Lopez will perform in Kazakhstan’s capital this summer, with local officials predicting a major economic windfall from the event. Malik Hasenov, producer at Astana Concert Company, told a recent government meeting that the concert could generate over 6.5 billion KZT ($12.6 million) for the city’s economy and contribute 400 million KZT ($778,000) in taxes to the state budget. Kazakhstan on the Map of J.Lo's World Tour Astana has been added to Lopez’s Up All Night world tour schedule, with the concert set to take place at Astana Arena on August 1. The tour includes stops in Turkey, Egypt, Spain, Hungary, Poland, the UAE, and other countries, but Kazakhstan is her only Central Asian destination. She is scheduled to perform in Abu Dhabi before arriving in Astana and will close the tour in Armenia's capital Yerevan. “I will have some special concerts this summer. I am very much looking forward to meeting you. We haven’t seen each other for too long. This summer is going to be awesome,” Lopez wrote on Instagram. Economic Impact: Expectations and Numbers According to Hasenov, approximately 15,000 tourists are expected to visit Astana for the concert, with significant spending projected across hotels, restaurants, transportation, and retail sectors. “Jennifer Lopez’s arrival will be a landmark moment, opening Astana on the touring map of A-class stars,” he said. Tickets are expected to go on sale shortly, ranging in price from 40,000 to 150,000 KZT ($75 to $290). Astana will also host two other major events in 2025. On July 13, the Alem Fest music festival, featuring British singer Craig David as headliner, will take place at Astana Arena, coinciding with the closing of Comic Con Astana. Additionally, large-scale drone shows are planned, expected to attract up to a million spectators. J.Lo and Kazakhstan: A Brief History This won’t be Jennifer Lopez’s first visit to Kazakhstan. In 2010, she performed at a private birthday celebration, and in 2011, she returned for a New Year’s corporate event. Reports estimate she was paid around $3 million for both appearances. In 2017, Lopez drew attention from Kazakhstani fans during a Las Vegas concert when she echoed chants of “Kazakhstan!” shouted by Gennady Golovkin supporters, a moment that quickly went viral. A year later, controversy arose when YouTube temporarily blocked the Kazakh music video Zyn-zyn, citing similarities to Lopez’s Control Myself. The video was later reinstated following public backlash in Kazakhstan, with many hailing it as a “small victory”. Most recently, in February 2025, Lopez interacted with a Kazakh fan named Binura during a concert in Abu Dhabi, sparking lively discussions across Kazakhstani social media.

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Uzbekistan Doubles Sports Budget to $230 Million, Launches Presidential Olympics

Uzbekistan has announced the launch of the Presidential Olympics, a new national sports competition, following a recent video conference meeting chaired by President Shavkat Mirziyoyev. Competitions in Olympic sports, titled "Olympic Peaks of New Uzbekistan," will be held twice a year across the country. Winners at the district and regional levels will receive awards from local authorities, while regional champions will advance to the Presidential Olympics, which will take place annually at the Olympic Village from December 10-20. Top athletes will be awarded valuable prizes, including houses and cars. Additionally, first and second-place winners will gain admission to the Republican Olympic and Paralympic Center, where they will receive scholarships for their first two years of study. The initiative aims to enhance Uzbekistan’s international sports standing and help the country secure a top-ten finish at the Los Angeles 2028 Olympic Games. During the meeting, it was noted that Uzbekistan’s sports budget has doubled over the past four years, rising from UZS 1.5 trillion ($115.38 million) to UZS 3 trillion ($230.77 million). Additionally, coaches’ salaries have doubled; significant investments have been made in sports infrastructure; 101 new sports facilities have been built; and 67 existing facilities have been reconstructed. To further support athletes preparing for international competitions, including the Olympics, an additional UZS 300 billion ($23 million) will be allocated. President Mirziyoyev commented, “Sport is, first of all, an ambassador of peace, a source of national pride for every country.”

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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.