/IRBIS, Apr 17, 01/ - REUTERS informs that the Kazakhstani parliament approved the corrections to the budget-2001 at the second and final reading by convincing the government to increase social expenses using extraordinary gains and cutting the money sent to the Development bank.

It is said that at joint meeting of two houses, 28 people from the Senate and 55 deputies of the Majilis voted for the corrections and amendments entered by the coordination commission and 14 were against, and two did not settle their positions.

Revenues were set at KZT437.5 bln against KZT412.7 bln in previous wording, and expenses and financing at KZT469.7 bln against KZT468.2 bln.

Budget deficit is said to have settled at KZT59.2 bln, or 2.1% of GDP against KZT55.8 bln and 2.2% of GDP.

The allocations to the Development bank were cut to KZT12 bln from KZT15 bln, is said. This amount was suggested to be cut to KZT13 bln by Kasymjomart Tokaev today.

Three billion, which was freed from the cut-off, is to be used in the following manner. More than one billion is to be allocated to the pensions and allowances to the people leaving around Semei nuclear test site, another KZT514 mln to state social payment debts, and KZT500 mln to the housing of the Kazakh repatriants, and KZT530 mln to move the regional center from Almaty to Taldy-Korgan.

Other extraordinary gains are to be used to develop the agriculture and fortify the south borders of the country.

The budget is to be corrected by using favorable economic situation, additional revenues from oil and metal exports, as well as VAT cuts and social tax reduction in the second half of this year. The budget had to also embody the creation of the Development bank and the National fund.

In new wording of the budget GDP may reach KZT2.875 trln against KZT2.535 trln as approved last year.

Consumer price index is expected at 8.4% on average, and 6.9% in late this year.

Annual average exchange rate of the tenge to dollar was corrected by the government to KZT149.9, whereas it was KZT152.7 in previous version of the budget.

The budget might be reviewed in September, was added.