/INTERFAX-KAZAKHSTAN, Almaty, April 21, 05/ - Nursultan Nazarbayev Kazakhstan President has commissioned government and National Bank with working out a complex of measures on containing growth of consumer prices under conditions of budget expenses growth.

The proper question was discussed at the meeting of Nazarbayev with the heads of state bodies regulating financial and economic sector, which was held on Wednesday in Almaty, National Bank's message presented to "Interfax-Kazakhstan" on Thursday says.

National Bank's annual report for year 2004 was also listened at the meeting, the message says.

"As a whole the president positively estimated National Bank's work in 2004 and approved the report. He has marked that necessity of taking measures by the government and the National Bank on containment of consumer prices growth under conditions of budget expenses growth and the preserved high economic activity", - the message says.

The president has also set other tasks for the government and the National Bank. The message says Nazarbayev said about the necessity of making a complex research by the government jointly with the National Bank concerning influence of exchange rate upon Kazakhstan economy, and also creation of the system for country's external debt control "with the purpose of estimating reasons and possible negative consequences of growth of foreign borrowing for republic's economic development".

Besides, National Bank jointly with the state supervision agency have been commission with working out the question about creation of the system of measures on real estate market monitoring.

National Bank, because of the planned increase of the volume of social payments for population, intends to reexamine the forecast of average annual inflation rate for year 2005 having set it within 5.2-6.9% instead of the planned before 4.9-6.5%.

The republican budget commission has already approved the forecast of social-economic development (SED) of Kazakhstan for year 2005 corrected by the ministry of economy and budget planning, which says average annual inflation rate is expected within 5-7%.

The corrections in the law "About the republican budget for year 2005" presented by the government to parliament offers to increase republican budget's deficit for the current year by KZT12.4 bn. to KZT113.8 bn. (1.7% relative to specified forecast of GDP for this year, current 131.29/$1).

It's planned to increase revenue part of the budget-2005 by KZT108.1 bn. to KZT1 trillion and 248.98 bn. (19% to GDP), and expenses - by KZT120.4 bn. to KZT1 trillion 362.74 bn. (20.7% to GDP).

[2005-04-21]