REFERENCE: Astana city - budget and its performance

/IRBIS, information of the KASE Listing commission, Sept 13, 01/ - The following information is published due to the admittance of second issue inscribed coupon bonds of local executive body of Astana city to the Kazakhstan Stock Exchange (KASE). Budget revenues Main sources of budgetary revenues for Astana are tax collections and official transfers from the national budget. Tax collections reached 90.7% in 1998, in 1999 - 73.2%, in 2000 - 88.3% of total revenues. Official transfers in 1998 equaled 5.2%, in 1999 - 25.4%, in 2000 - 9.4% of total revenues of the budget. Budget performance data of Astana in 1998-2000 (m KZT, unless otherwise specified) ------------------------------------------------------------------------------- Plan Budget performance ------ --------------------------------------- % of % of % of Budget articles 2001 2000 plan 1999 plan 1998 plan -------------------------------- ------ ------ ----- ------ ----- ----- ------- I. REVENUES 28,287 23,489 100.2 20,086 100.0 9,558 100.0 Revenues: 22,508 21,083 100.2 14,984 102.0 9,064 95.0 Tax revenues 21,894 20,736 100.1 14,710 102.5 8,671 94.1 Nontax revenues 484 334 112.3 265 94.0 360 111.3 Capital transactions 131 12 95.8 8 524.7 32 - Official transfers received 5,379 2,200 100.0 5,103 93.6 494 3,221.2 Repayment of loans and debt 400 207 93.8 - - - - -------------------------------- ------ ------ ----- ------ ----- ----- ------- II. EXPENSES AND FINANCING 28,863 23,570 99.7 19,929 98.1 9,588 99.5 Expenses: 26,480 23,470 99.7 19,679 98.0 9,588 99.5 State public services 266 305 99.7 381 99.9 164 99.4 Defense 326 316 99.8 205 99.8 48 99.5 Public order and safety 1,579 1,122 100.0 583 100.0 452 99.9 Education 2,099 1,738 99.7 3,543 99.9 739 100.0 Health 1,658 1,558 99.4 1,074 97.6 364 100.0 Social insurance and protection 951 668 99.6 616 96.9 1,106 99.8 Housing 6,450 4,216 99.1 1,034 74.7 829 98.2 Culture, sports, and information 916 898 100.0 3,033 99.8 332 100.0 Agriculture, water, forestry, fishing and environment protection 60 48 100.0 38 99.6 5 100.0 Industry, construction and mineral resources 14 1 100.0 - - 5 96.2 Transportation and communication 992 576 100.0 224 100.0 - - Others 11,032 11,936 100.0 8,948 100.0 5,065 91.0 Debt servicing 136 89 98.1 - - - - Official transfers (withdrawals) - - - - - 479 - Financing 2,383 100 100.0 250 100.0 - - -------------------------------- ------ ------ ----- ------ ----- ----- ------- III. Budget deficit (-) / surplus (+) -576 -81 157 -30 -------------------------------- ------ ------ ----- ------ ----- ----- ------- IV. Budget deficit financing 576 191 128 - Revenues 916 - 150 - Repayments 451 202 22 - -------------------------------- ------ ------ ----- ------ ----- ----- ------- V. Cash flows -111 -283 285 -30 At the beginning of the year 111 393 108 77 At the end of the year - 111 393 48 ------------------------------------------------------------------------------- Most of the tax revenues are made of value added tax. In 2000 the budget revenues from value added tax equaled KZT11,602m, or 56.0% of all tax revenues. From 1998 through 2000 value added tax revenues increased by KZT6,543m or 129.3%. Income tax from legal entities accounted for 18.3% of all taxes in 2000. However, in 2001 no revenues are expected from income taxes from legal entities, since all money will be transferred to national budget. Dynamics of tax revenues of Astana (m KZT) ----------------------------------------------------------------------------- 2001 2000 1999 1998 ------ ------------- ------------- ----------- Article Plan Fact Plan Fact Plan Fact Plan ------------------------------ ------ ------ ------ ------ ------ ----- ----- Tax revenues 21,894 20,736 20,721 14,710 14,353 8,671 9,216 Income tax from legal entities - 3,803 3,034 2,379 1,570 1,440 2,205 Income tax from legal entities 2,814 1,198 1,155 797 950 854 779 Social tax 5,131 2,557 2,044 1,640 1,452 - - VAT 12,028 11,602 11,666 8,230 8,750 5,059 5,440 Other taxes 1,921 1,576 2,822 1,664 1,631 1,318 792 ----------------------------------------------------------------------------- Budget expenses and financing Most of the general expenses of the city budget are created by other expenses (in 1998 - 52.8%, in 1999 - 44.9%, in 2000 - 50.6%). Most of the other expenses come from the development expenses of Astana SEZ (in 1998 - KZT5,034m, or 99.4%, in 1999 - KZT8,870m, or 99.1%, in 2000 - KZT11,338m, or 95.0%). In budget 2001 the most of the general expenses are incurred by other expenses too (41.7%) and housing (24%). Most of the other expenses come from the expenses of Astana development program administration - KZT9,944m, or 90.1%, of which KZT9,913m, or 99.7% are development expenses of Astana. Most of the housing expenses come from the housing, KZT2,311m, or 35.8%, and water supply KZT2,251m, or 34.9%. In water supply expenses there is an article allocating funds to the "Construction of the third branch of Vyacheslav water reservoir for Astana" project amounting to KZT1,527m. Financing for the year 2001 accounts for 8.3% of total expenses and financing. financing also provides funds for regional investment programs totaling KZT916m, which corresponds to the amount of funds to be raised by the issuer through bond issue.