Deficit of refined budget-2007 will total 1.7% of GDP - head of ministry of economics

/INTERFAX-KAZAKHSTAN, Astana, October 16, 07/ - Deficit of the republican budget for 2007 will total 1.7% to GDP after giving a more precise definition. "Parameters of refined budget for 2007 will include: inflows equal to KZT2,273.3 bn. (17.1% against GDP), expenses at KZT2,502.9 bn. (18.8% against GDP), deficit at KZT229.6 bn. (1.7% to GDP)", -minister of economy and budget planning Bahit Sultanov informed when giving speech on meeting of government on Tuesday in Astana. The current exchange rate is KZT120.66/$1. As it is known, the prime minister of the rupublic Karim Macimov charged on last Monday with development of amendments in the republican budget for the current year with the aim of capital allocation on support of the country's financial sector. As Mr Sultanov informed, "the base for defining of additional sources of income side of the budget was reconsideration of macro economical indicators and inflow of one-off payments". "Taking into consideration the tendencies of economical growth, the situation on global commodity markets, the forecast of GDP for 2007 is increased by KZT851 bn. in comparison with the last plan and will reach KZT13,315.2 bn.", - he noted. According to minister's data, by the result of nine months of the current year, an excess of planned budget earnings by 7.7% is observed. Overall, it is planned to increase the income part of the republican budget by KZT175.1 bn., Mr Sultanov said. From them, according to him, tax proceeds will increase by KZT89 bn. due to economy growth by KZT14.7 bn. and foreign trade turnover by KZT32.4 bn.; due to increase in one-off payments on subscription bonus by KZT32.5 bn. and in other factors by KZT9.3 bn. Non-tax receipts will grow by KZT80.8 bn., including because of takings for legalization of property and other proceeds to the sumof kZT73.3 bn., the minister said. He announced that in accordance with applications of budget programs administrators, the expenses were reduced by KZT22.2 bn. due to their forecasted incomplete use. "In order to reduce governmental borrowing, reasoning from the formed situation on foreign and domestic markets of loan, the budget deficit will reduced by KZT41.5 bn.", - Mr Sultanov said. Thus, in the expenditures side of the budget, the sum to distribute totaled KZT155.7 bn. that would be allocated on increase of expenses of: Kazakhstan Mortgage Company JSC - by KZY20.5 bn., from them, KZT12 bn. in the form of lending for housing financing; Kazakhstan fund of guarantying the mortgages JSC - by KZT 1bn., National scientific and technological Samgau holding JSC - by KZT12.2 bn. and Kazyna fund of seady development JSC - by KZT122 bn. The government approved the given project of amendments in the republican budget on meeting and would submit it in the parliament. As it is known, the republican budget of Kazakhstan for 2007 was planned with deficit at KZT271.2 bn. or 2.2% to the forecasted GDP in that year. At that, its income part was expected at KZT2,098.2 bn., and general expenses - at KZT2,369.4 bn. [2007-10-16]