The Parliament has accepted amendments in republican budget for 2006

/INTERFAX-KAZAKHSTAN, Astana, June 20, 06/ - The Parliament of Kazakhstan on Tuesday in the joint meeting of two chambers, - Senate (upper) and majilis (lower), accepted in the second final bill reading the insertion of changes and additions into law "Of republican budget for 2006. Document is directed for a signature to the head of the state. As the senator Musiraly Utebaev, the chairman of joint commission informed, having been created by chambers for preparation of a bill by the second reading, commission offered to accept a bill with increasing parameters (income, supply, deficit) of republican budget for current year in course offered by government. Meanwhile, he noted that commission offered in supply to redistribute KZT4.4 bn. among different items. "The decision not to change parameters of the draft amendment of specified republican budget for 2006, to find sources in supply at the sum of KZT4.4 bn. at the expense of expenditures reducing of "budget" to some items was adopted, M. Utebaev said. As it is known, pursuant to the draft amendments, the government offers to increase parameters of republican budget for current year. Thus, the volume of budget earnings is offered to fix at the sum of KZT1 trillion 533.9 m. (17.6% to forecasted volume of GDP for this year), supply - at the sum of KZT1 trillion 660.1 bn. (19% to GDP), and deficit - KZT126.2 bn. (1.4% to GDP). Current exchange rate is 119.18/$1. Thus, in comparison with confirmed parameters the income is offered to increase by more than KZT42. bn., supply - approximately by KZT54.5 bn., deficit - by KZT12.4 bn. Draft amendments in republican budget for 2006 was carried out in connection with introduction on July 1 of a new concept of forming and using funds of the National fund for medium-term prospect and performance necessity of directions of the head of state, reflected in his March message to people of Kazakhstan. As it's known, from July 1 new mechanism of republican budget forming will be introduced. Pursuant to which its income part will be formed only at the expense of non-oil sector, and all direct taxes from oil sector will be forwarded to the National fund. Meanwhile, in accordance with new scheme, if existing incomes do not cover prevalent level of supply, funds from the National fund will be directed in order to cover the difference as guaranteed transfer, which will be intended only for financing of development programs. Guaranteed transfer of the National fund in republican budget for this year following a bill is stipulated by a sum of about KZT76.6 bn. Additional funds in supply of a budget-2006 the government offered to direct, in particular, to differentiated increasing of the rates of pension payments to pensioners of force structures, to increasing of special state allowances for development of Astana, to forming of authorized capital of state Fund of sustainable development "Kazyna" (Treasury). Besides, it was offered to provide funds for creation and launch of geostationary communication and broadcasting satellite KazSat-2 and satellite of remote probing of the Earth. The government offered to enhance reserves of the government, to direct funds for construction of underground in Almaty (Alma-Аtа), for development of design estimates within preparation to holding in Almaty Asian games in 2011. Along with it conciliation commission offered to reduce expenditures of a budget for item of rehabilitation and environment management in basins of rivers -Nura and Ishim - by 320.2 m. tenge, for construction and reconstruction of environmental protection objects - by 410. 8 m. tenge, for servicing of governmental debt - by 3 bn. tenge and for a range of other items, chairman of joint commission informed. Redistributed funds, M.Utebaev said, were offered to forward to the items as follows: economical management of the Parliament - to completion of construction of a building of Senate of the Parliament - KZT400 m.; to the Ministry of culture and information - to production of national movies - 90 m. tenge, to development of state language - KZT100 m.; to the Ministry of internal affairs - for providing with migration cards, incoming to the republic - KZT29.4 m. and for a range of other items. As it is known, total earnings of republican budget-2006 were approved in autumn last year at the sum of KZT1 trillion 491.8 bn., total expenditures - at the sum of KZT1 trillion 605.6 bn., deficit - KZT113.8 bn. (1.4% to forecasted volume of GDP for this year). Acting republican budget-2006 was calculated due to the following forecasts of primary macro-economy indexes: GDP volume - KZT8 trillion 065 bn., or with growth compared to 2005 by 8.3%; index of consumer prices, which is used as indicator of inflation rate, - within 5-7% on average per year, annual average exchange rate of tenge against USD - 127/$1. World price for oil of Brent in budget-2006 was fixed at the rate of $49 per barrel. Meanwhile, the draft amendment in republican budget-2006 was based by corrected macro-economic forecast of primary indicators. Thus, GDP volume for current year now is forecasted at the rate of KZT8 trillion 725 bn. with actual growth by 8.3%, average annual inflation rate - in corridor of 5.7- 7.6%, world price for oil (Brent's blend) - $55 per barrel. Republican budget in Kazakhstan is the main financial document. On its basis the state budget is formed, which comprises budgets of regions. [2006-06-21]