Work pace to be high and demand to be tough: Olzhas Bektenov outlines key tasks for Government

Prime Minister of Kazakhstan Olzhas Bektenov held a meeting on the implementation of instructions of the Head of State Kassym-Jomart Tokayev, announced at an expanded Government session on February 7, El.kz cites primeminister.kz.

Having heard the ministers of the financial and economic block, the Prime Minister stressed that budget expenditures should be clearly prioritized with a focus on obtaining full economic return, and unproductive expenditures should be completely excluded.

"The Ministry of Finance within 10 days to audit the republican budget and within a month all local budgets for a significant reduction of expenditures that are not of primary importance. No one should waste money," Olzhas Bektenov said.

Prime Minister also pointed out the need to practically rewrite the draft Tax Code anew, changing its philosophy.

"Opinions of the expert and business community should be taken into account. The Tax Code should stimulate business activity, motivate to enlarge business, and not vice versa," he instructed.

As noted by Olzhas Bektenov, the preparation of the document should provide for full digitalization of administration and bring order to the issue of granting tax exemptions.

In general, Prime Minister emphasized that it is necessary to create conditions under which it would be profitable for business to work on the principle of "growth", without fear of fiscal costs and administrative burdens.

Having outlined a number of specific tasks to give a new impetus to industrial development, Prime Minister instructed First Deputy Prime Minister Roman Sklyar to hold negotiations with the owners of all major industrial enterprises, primarily in the extractive industries, within 10 days.

"They should present specific plans for the creation in the near future of new production facilities of high conversion," Olzhas Bektenov pointed out.

At the same time, he emphasized that domestic industrial giants should dramatically increase purchases of Kazakhstan's goods, works and services. Appropriate agreements will be concluded with them.

Discussing the problematic issues of the construction industry, Prime Minister pointed out the importance of widespread use of products of domestic manufacturers.

"All estimates should include Kazakhstani building materials and other items. Also conduct an audit of the estimate documentation for overestimation of the cost of materials and works. It is no secret that estimates are inflated. It is necessary to restore order," Olzhas Bektenov emphasized.

In addition, the head of the Government emphasized the importance of reliable power supply to industrial enterprises. On the instructions of the President this year it is necessary to introduce more than 700 MW of additional generation. Olzhas Bektenov noted that in case of non-fulfillment of the task, appropriate conclusions would follow.

With regard to the provision of water resources, Prime Minister instructed the relevant ministry to prepare a set of measures for rational water consumption in sectors of the economy, as well as to work out a campaign to introduce a culture of water use.

Regarding the construction of plants for processing solid domestic waste, Prime Minister demanded to develop proposals for attracting private investment within a month.

"Proposals are concrete projects with potential investors and terms of implementation, not just a general vision," he emphasized.

Turning to the issues of the social block, Olzhas Bektenov first of all drew attention to the need to reform the health insurance system.

"I believe that the health insurance system requires serious reformatting. It is unacceptable to increase its financing with such inefficient spending of funds, write-offs. The industry requires full digitalization and transparency,"Prime Minister said.

During the meeting Head of the Government gave specific instructions on digital transformation, development of transport and agricultural industries, implementation of national projects "Comfortable School" and "Modernization of rural health care", as well as reforming mechanisms of social support of citizens, public procurement and public-private partnership.

"We will be a Government of decisive action. We have been given enough authority to effectively increase the growth rate, to actively carry out diversification of the economy, to attract investment, to solve all the tasks at hand," Olzhas Bektenov said.

According to him, it is necessary to move away from stereotypes, completely eradicating formalism and red tape.

"Ministers should be independent, promptly solve sectoral issues at their level. Everyone needs to understand that the pace of work will be high, and the demand will be tough," the Prime Minister concluded.

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