During the extended meeting, the results of the socio-economic development of the country were reviewed and measures were identified to further ensure economic growth.

Before the meeting, a digital panel was shown in the lobby of the Ukimet Uyi building to Nursultan Nazarbayev, which displayed information on the results of the implementation of the state program of Digital Kazakhstan in 2018 and the data of the E-Government Situation Center.

Opening the meeting, the President of Kazakhstan noted the positive dynamics of economic indicators in 2018.

“The economic growth was more than 4%. In general, positive dynamics is observed in trade - 7.6%, in the transport sector - 4.6%, and in manufacturing - over 4%. Other industries also maintain a good pace. Annual inflation was 5.3%. The volume of investments in fixed assets increased by 17.2%,” - the Head of State said.

During the meeting, reports were delivered by Deputy Prime Minister E. Dossaev, Chairman of the National Bank D. Akishev, Deputy Prime Minister - Minister of Agriculture U. Shukeyev, Minister of Industry and Infrastructure Development of Zh. Kassymbek, Akim of Zhambyl region A. Myrzakhmetov, Akim of West Kazakhstan region A. Kulginov.

Having listened to the reports, Nursultan Nazarbayev stressed that the Government, the National Bank and regional Akims had carried out significant work, which allowed achieving optimal development indicators.

“The minimum wage has increased 1.5 times. About 500 thousand people found employment, 113 thousand families found new housing. The most comfortable conditions for entrepreneurship have been created,” - the President of Kazakhstan said.

At the same time, the Head of State drew attention to trends in the global economy, stressing the need to further ensure the pace of economic growth.

“Last year, a systematic revision of the state social policy began. Within the framework of the Five Social Initiatives, the recent Address to the people of Kazakhstan and the adopted social package for young people, enormous funds were directed at ensuring the growth of the welfare of all Kazakhstanis. Today, not all countries can afford such an increase in social spending,” – Nursultan Nazarbayev said.

The Head of State noted that henceforth the incomes and quality of life of the population will become the main criteria for the effectiveness of the state, and the work of each Minister and Akim will be assessed according to these parameters.

During the meeting, the President of Kazakhstan dwelt separately on the progress and results of the implementation of all program documents.

“The Plan of the Nation tasks to form a new economic model based on reducing the role of the state, developing private business, competition and the rule of law. GDP growth should occur, first of all, by increasing efficiency, labor productivity, strengthening SMEs. In recent years, the share of SMEs in the economy remains at the level of 25-27%. Our task is to bring it up to 35% by 2025, and not less than 50% by 2050,” – Nursultan Nazarbayev said.

In this regard, the Head of State noted that within the framework of the Business Roadmap, 385 billion tenge was allocated, more than 20 thousand projects received financial support, and about 180 thousand entrepreneurs received appropriate training.

“There is a huge potential for development. For example, just the volume of regulated purchases is over 11 trillion tenge. Experts estimate the possibility of replacing imported goods and services worth about 1 trillion tenge by domestic production. At the same time, the output of SMEs declined in Pavlodar and Turkestan regions. I am instructing the Government, together with the Akims, to sort it out. Each Akim is personally responsible for the development of small and medium businesses. In the Government, Deputy Prime Minister Erbolat Dossaev is personally responsible for this,” - the President of Kazakhstan said.

Nursultan Nazarbayev separately focused on the issues of state participation in the economy and expansion of competitive markets.

“The antimonopoly service should be engaged in creating competitive markets and expanding business. The private sector should be the key driver of economic growth and labor productivity. Each Akim must clearly understand what the structure of the regional economy will be, due to which development will take place, which sectors will grow, will provide jobs and incomes of the population,” – the Head of State said.

In this regard, Akims, together with NCE Atameken, were instructed to form a Development Plan for each region, aimed at creating jobs in the context of the development prospects of the region.

Along with this, the President of Kazakhstan pointed out the importance of increasing the share of processed agricultural products in the export structure and ensuring control of tariffs and prices for socially important goods for the population.

Nursultan Nazarbayev paid particular attention to the development of animal husbandry and the provision of domestic markets with agricultural products of domestic production.

The Head of State also focused on the results of the implementation of the industrialization program and the process of attracting investments in fixed capital.

“The second five-year industrialization plan is coming to an end. 1250 projects were implemented, which played an important role in the development of industry. For the Third Modernization of the country, it is necessary to attract investments in fixed assets at the level of more than 30% of GDP per year. In recent years, this figure is less than 20%. The share of loans to GDP also remains low - at the level of 25%. It is about the lack of investment in the real sector. The National Bank needs to be proactive and promote economic growth,” – the President of Kazakhstan said.

Nursultan Nazarbayev instructed to develop systemic solutions to provide the real sector and infrastructure projects with financing, as well as to create a comprehensive investment attraction ecosystem with a focus on investors from developed countries.

“In each branch Ministry, Akimats, national companies it is necessary to fix a specific deputy, who is personally responsible for investment work and export. For coordinated work it is necessary to build an effective interaction. We produce more than 500 new products, export to 110 countries of the world. However, there are few projects that can really affect the structure of the economy. The volume of exports of high value added products remains virtually unchanged,” – the Head of State said.

The President of Kazakhstan also pointed out the need for timely resolution of issues in the financial and banking sector of the country.

“In the last 3 years alone, the number of enterprises at the stage of bankruptcy has almost doubled, to 3.7 thousand. Now their debt exceeds 4 trillion tenge. Small business is deeply credited. Business development is constrained by debt and a lack of equity capital,” - Nursultan Nazarbayev said.

The Head of State stressed the importance of simplifying bankruptcy procedures and increasing their transparency.

“In 5 years, about 30 changes have been made to the legislation, and the situation is not improving. The bankruptcy procedure is applied at late stages, when financial recovery is no longer possible. The Government, personally Prime Minister Sagintayev, needs to specifically and systematically understand these issues in the context of regions and enterprises,” – the President of Kazakhstan said.

In addition, Nursultan Nazarbayev focused on the issues of combating the shadow economy.

“Our goal is to reduce the share of the shadow economy by at least 40% in 3 years. It is necessary to study the possibility of establishing thresholds for cash withdrawal by legal entities from banks. The government needs to conduct a tax amnesty for individuals, providing for the cancellation of fines, provided they pay the principal debt,” – the Head of State said.

Having given separate attention to the issue of improving the quality of life of the population, the President of Kazakhstan set a number of tasks for the Government and Akimats.

“It was not by chance that I identified the issue of quality of life as a state priority. I regularly visit the regions and know well what people in the field are worried about now. Quality of life is not an abstract concept. These are housing, education, health care, social assistance, ecology, roads, public transport, security,” – Nursultan Nazarbayev said.

The Head of State emphasized the importance of continuing measures for the infrastructural development of the regions with an emphasis on the construction of intraregional and district roads.

“On my instructions, based on the results of sociological research, the Executive Office has compiled a Map of the country’s problematic issues, where system and infrastructure problems are identified in the context of each region: condition of roads, rural water supply, hospitals, schools, utilities and networks. It is needed to work on the solution of such issues. The developed Map should be submitted to the Government. First of all, it is necessary to solve the vital issues of the people,” – the President of Kazakhstan instructed.

The discussion also outlined the importance of further work on the construction of housing and access to it for all segments of the population.

“According to the state program “Nurly Zher” a record volume of housing has been introduced - 12.5 million square meters. We did not have such high rates of construction before. The program has given impetus to the expansion of local content, whose share is estimated to exceed 85%. Under the “7-20-25” program, more than 3.7 thousand Kazakhstanis have acquired new housing. At the same time, due to various factors, not all categories of the population have the opportunity to participate in these programs,” – Nursultan Nazarbayev said.

The Head of State also instructed to continue the construction of rental housing for young people in million-plus cities.

“Some regions are initiating the construction of new residential areas that are far from infrastructure, which raises costs. It has already been said that we will work according to the “people to infrastructure” model, and not vice versa. According to my instructions, a Comprehensive Plan for Compact Development of the City of Astana was developed for 5 years, taking into account the walking accessibility of the population to basic public goods and services. Regional Akims should study experience, adopt similar plans,” – the President of Kazakhstan said.

Nursultan Nazarbayev instructed to continue work on providing the population with quality education.

“In the field of education, working conditions for teachers are improving, their salaries have been increased. Universities gained autonomy. We expanded coverage of preschool education. Last year about 70 new schools were built. All schools should be provided with a full-fledged Internet, as well as school transportation,” – the Head of State said.

The President of Kazakhstan also focused on the process of training specialists in the framework of VET and the subsequent employment of graduates.

Nursultan Nazarbayev noted the positive dynamics of the development of the national health care system.

“In the health care sector, work continues on developing infrastructure and improving the quality of medical services. Life expectancy and fertility are increasing. 16 million electronic health passports have been created, the ambulance service has been modernized. I have signed the Law, due to which drug prices will be regulated and become transparent. I support the experience in the introduction of a transparent drug accounting system, which provided savings of 26 billion tenge of budget funds,” – the Head of State said.

In addition, the President of Kazakhstan focused on the issue of availability of medical services in the regions, emphasizing the effectiveness of the project to launch special trains "Salamatty Kazakhstan".

“In remote villages it is possible to organize mobile points of medical examination. Within 3 years, it is necessary to resolve the issue of providing an ambulance service with cars and reanimobiles. For all these goals, it is necessary to allocate 27 billion tenge. Based on the inventory until the end of 2020, Akims should ensure that district hospitals and polyclinics are fully equipped with the necessary medical equipment,” – Nursultan Nazarbayev said.

The Head of State, noting a significant increase in the scale of social support, ordered the Government to ensure the growth of the average size of social payments from the SSIF to 30% from January 1, 2020 and to adopt the New National Plan to ensure the rights and improve the quality of life of people with disabilities.

“The Prosecutor’s Office revealed more than 37 thousand violations of labor rights of workers. Among them are wage arrears, violation of safety of working conditions, incorrect calculation of wages, non-payment of allowances for harmful conditions, discrimination of the rights of our citizens in foreign enterprises. The Government, Akims and prosecutors should keep this issue under strict control,” - the President of Kazakhstan said.

In conclusion, Nursultan Nazarbayev stressed that the population of the country should feel the results of all the activities of the Government, and approved the basic criteria for the work of the Cabinet of Ministers in 2019 according to the Strategic Development Plan “Kazakhstan – 2025”.

“It is necessary to ensure stable growth of the economy at the level of not less than 4%. In order to enter the top 30 developed countries in the future, it is necessary to achieve a growth of 5%. To increase the share of small and medium businesses in GDP to 28.2%. To ensure the growth of non-primary goods and services to $ 24.7 billion, labor productivity - by 12.3% compared to 2016, investment - to 16.8% of GDP. Within the framework of the inclusive growth model, to increase the average per capita real incomes of the population to 6% compared to the 2016 indicator,” – the Head of State concluded.


Published: 30 January 2019



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