Kazakhstan Overhauls Regional Budget Distribution: Stricter Rules, Concerns Remain

Kazakhstan Announces Stricter Budget Distribution Rules for Regions Kazakhstan is set to overhaul its system for distributing funds to regional governments. Minister of National Economy, Serik Zhumangarin, recently announced sweeping changes aimed at creating a more transparent and equitable process. The current system, where 17 of 20 regions receive subsidies totaling 5.3 trillion tenge annually, has been criticized for inefficiencies. "The approaches will be very tough," Zhumangarin stated, outlining plans to prevent regions from underestimating their income projections to secure more funding. The new system will focus on a region's actual potential rather than solely on applications. This move is intended to stabilize the national finances, which Zhumangarin stressed as crucial for preventing a sharp deterioration in the coming year. While the government aims for fairness, concerns remain about the potential impact on weaker regions. The changes represent a significant shift in how resources are allocated across Kazakhstan, with potential long-term implications for regional development and economic stability.