Kazakhstani budget should be conservative - the head of the National Bank

/IRBIS, Dec.4, 00/ - REUTERS informs, with the reference to the National Bank, which acts as a financial advisor of the government, that the country's budget should be formed on the basis of real anticipated figures irrespective of high world prices on the Kazakhstani export items and positive forecasts on possible budget revenues. The chairman of the bank said that the budget should be calculated on the basis of what we can be sure of, and if the revenues become greater then it would be better to reconsider the budget in May-June, and reallocate the resources. The budget-2001 was approved by the majority of the parliament last Saturday at the first hearings, with the revenues being increased by KZT6.2 bln compared to initial draft of the budget due to additional revenues of this year. Revenues are said to be approved at KZT412.45 bln ($2.70 bln) at annual average exchange rate of KZT152.7 per U.S. dollar, and expenses and financing were increased from KZT462.0 bln to KZT468.254 bln, while deficit remained intact at KZT55.8 bln. It is said that the draft budget was calculated on the basis of $21 per barrel oil price. Mr. Marchenko believes that initial version of the budget was optimal one and that by the mid 2001 major trends will be clear such as world raw material prices that constitute the revenues from oil and mining industry. The bank chairman also said that it would be incorrect to believe that everything will be fine, and hence, he suggested the budget to be a little conservative because it was always easy to allocate free money than cut off the expenses. It was reminded that the government had to cut the budgets 1998 and 1999. High prices on the Kazakhstani export items such as oil, metals, grain allowed the government to build into the budget-2001 increases in pensions and minimal salaries to budgetary employees, including teachers, doctors, law enforcement agency workers, is said. The bank chairman said the country was expecting a 9% growth of GDP till the end of this year, which is greater than 1.7% growth in last year, as well as positive balance of current accounts. We have never had such a good year in our history. If we continue to live like this another two-three years, then macroeconomic successes could be felt by the population in every household and work place, Marchenko said. The second reading of the budget is to be conducted on December 7.