East-Kazakhstan region: budget performance

/IRBIS, June 13, 01/ - The information presented below is published regarding admission of coupon bonds of local executive body of East- Kazakhstan region (EKR) into circulation at KASE. Announced volume of emission is KZT1bn, circulation term - 3 years. All responsibility for reliability of information is taken by the issuer. REVENUES According to the "Law on Budget System" Kazakhstan two tier system of the budget. The government budget consists of republican and local budgets. The regional budgets have purely territorial divisions on municipal and district budgets. The Law defines list of local tax and non-tax revenues, authority to conduct capital operations, types of official transfers. Another important source of budget revenues is redemption of local budget credits. The excess of funds over planned volume of centralized budget transfers remains at disposal of local authorities. Budget performance of East-Kazakhstan region for 1998-2000 (in thousand tenge, unless otherwise indicated) ----------------------------------------------------------------------------- 2000 1999 1998 ------------------ ------------------ ------------------ % of % of % of Budget planned planned planned article Amount volume Amount volume Amount volume -------------------- ---------- ------- ---------- ------- ---------- ------- I. Receipts 25,892,409 101.7 17,330,975 93.2 16,046,239 80.3 -------------------- ---------- ------- ---------- ------- ---------- ------- Revenues: 22,348,473 103.1 16,983,899 94.0 11,240,431 74.1 -------------------- ---------- ------- ---------- ------- ---------- ------- Tax revenues 21,090,626 104.0 15,772,064 96.7 9,946,378 75.8 Non tax revenues 1,158,481 89.4 1,113,265 66.3 1,271,493 62.1 Capital operations 99,366 103.8 98,570 128.2 22,560 1,156.9 Official transfers received 3,472,583 100.0 325,154 97.8 4,796,816 100.0 -------------------- ---------- ------- ---------- ------- ---------- ------- Redemption of loans, borrowings 71,353 23.5 21,922 11.3 8,992 6.3 -------------------- ---------- ------- ---------- ------- ---------- ------- II. Expenditures and financing 25,422,315 99.4 17,816,413 89.4 16,531,095 81.1 -------------------- ---------- ------- ---------- ------- ---------- ------- Expenditures: 25,165,667 99.4 17,796,013 89.4 16,449,476 81.0 -------------------- ---------- ------- ---------- ------- ---------- ------- General services 926,296 99.1 739,754 96.9 726,402 87.2 Defense 770,145 99.9 574,629 99.2 470,414 83.8 Public order 999,209 99.8 821,798 97.8 788,672 88.8 Education 7,115,017 99.7 6,746,748 97.7 5,966,266 90.7 Health care 4,983,195 99.9 4,398,243 87.5 1,785,479 81.6 Social security 2,068,574 97.7 2,195,133 89.4 5,071,917 69.8 Housing utilities 776,015 99.4 443,970 83.1 532,891 90.9 Culture, sport, information 1,022,881 99.6 696,740 94.2 681,930 89.9 Agriculture, water resources, forestry and ecology 485,183 91.3 250,806 78.6 207,461 73.5 Industry, construction, mining 29,500 100.0 28,994 94.2 45,202 72.2 Transportation and communications 4,173,265 100.0 835,699 52.0 0 Other 537,585 98.4 63,499 88.6 170,797 58.4 Official transfers (withdrawal) 1,278,802 100.0 - - - - -------------------- ---------- ------- ---------- ------- ---------- ------- Financing 256,648 99.8 20,400 81.3 81,619 87.2 -------------------- ---------- ------- ---------- ------- ---------- ------- III. Budget deficit (-) / surplus (+) +470,094 -485,438 -484,856 ----------------------------------------------------------------------------- Budget performance for the first four months of 2001 (in thousand tenge, unless otherwise indicated) -------------------------------------------------------------------------- Planned figure Performance -------------------- ---------------------- in % to ----------- Budget 2001 4 months period year article 2001 Actual ------------------------------ ---------- --------- ---------- ------ ---- I. Receipts 27,665,794 6,755,421 7,011,292 103.8 25.3 ------------------------------ ---------- --------- ---------- ------ ---- Revenues: 24,599,992 6,663,617 7,007,993 105.2 28.5 ------------------------------ ---------- --------- ---------- ------ ---- Tax revenues 23,050,412 6,298,668 6,685,711 106.1 29.0 Non tax revenues 1,294,674 306,538 281,581 91.9 21.7 Capital operations 254,906 58,411 40,701 69.7 16.0 ------------------------------ ---------- --------- ---------- ------ ---- Official transfers received 2,655,450 0 0 - - ------------------------------ ---------- --------- ---------- ------ ---- Redemption of loans, borrowings 410,352 91,804 3,299 3.6 0.8 ------------------------------ ---------- --------- ---------- ------ ---- II. Expenditures and financing 28,799,527 7,067,311 5,333,366 75.5 18.5 ------------------------------ ---------- --------- ---------- ------ ---- Expenditures: 27,592,835 6,674,219 5,287,576 79.2 19.2 ------------------------------ ---------- --------- ---------- ------ ---- General services 987,026 265,610 199,226 75.0 20.2 Defense 873,705 266,288 231,450 86.9 26.5 Public order 1,009,858 290,435 260,288 89.6 25.8 Education 7,488,232 2,045,774 1,789,141 87.5 23.9 Health care 5,077,726 1,278,453 979,499 76.6 19.3 Social security 3,572,456 763,869 533,963 69.9 14.9 Housing utilities 513,521 139,483 129,703 93.0 25.3 Culture, sport, information 861,209 222,239 150,362 67.7 17.5 Agriculture, water resources, forestry and ecology 565,807 121,847 41,354 33.9 7.3 Industry, construction, mining 167,494 3,503 223 6.4 Transportation and communications 3,553,150 378,473 183,167 48.4 5.2 Other 510,172 201,590 107,540 53.3 21.1 Debt servicing 5,000 5,000 0 - - Official transfers 2,407,479 691,655 681,660 98.6 28.3 ------------------------------ ---------- --------- ---------- ------ ---- Financing 1,206,692 393,092 45,790 11.6 3.8 ------------------------------ ---------- --------- ---------- ------ ---- III. Budget deficit (-) / surplus (+) -1,133,733 -311,890 +1,677,926 -------------------------------------------------------------------------- Tax revenues Tax revenues take largest part of total revenues. In 1998, they amounted to 62.0% of the budget receipts, 1999 - 91.0%, 2000 - 81.5% ,in first quarter 2001 - 95.4%. The revival of non-ferrous metals industry in last year (2000) contributed to budget performance. For instance, corporate income tax doubled compared to 1999, income tax from individuals increased by 58.4%, social tax - 17.3% (these two are attributed to growth of average wage) and property tax - 10.6%. Non-tax revenues Non-tax revenues including receipts from sale and rent of municipal property have been insignificant. Their share in total revenues equaled 7.9% in 1998, 1999 - 6.4%, 2000 - 4.5%, in first quarter - 4.0%. Capital operations receipts are also low and vary between 0.1%-0.6%. Official transfers and grants From 1997, the region was a recipient of transfers from the republican budget on construction of the bridge through Irtish river. Last year volume amounted KTZ9.74bn. For 2001, the volume of transfers for completion of construction would reach KZT2.66bn. According to the issuer, the construction has already been completed and it was put into operation in last year, while there is still infrastructure to be improved. The total project cost is 28.32bn yens, including external borrowing - 21.53bn yen and government budget financing - 6.79bn yens. According to the article 12, Law "On the Republican Budget for 2001" the local budget canceled any obligations to the republican one from Jan.01, 2001. It included fund received in 1997-1999 under the same project. EXPENDITURES The most part of the budget expenditures (1998 - 89.7%, 1999 - 90.6%, 2000 - 83.1%, first quarter 2001 - 75.5%) falls on seven main directions of development: housing utilities, health care, education, social security, transportation and communications, public order, culture, sport and information. Till year 2000, there have no been any official transfers (withdrawals) to the republican budget. For 2000, the Law "On Republican Budget for 2000" defined the size of transfers as equal to KZT1,278,802 th or 4.95 of the total budget receipts. Approved withdrawal for 20001 equals KZT2,407,479 th. or 8.7% correspondingly. On April 25, this amount was increased up to KZT52,373 th.