Astana is testing budget scenarios, including if the price of oil at $16

Astana is testing budget scenarios, including if the price of oil at $16

The government of Kazakhstan will carry out the correction of fiscal policy in a few weeks when the situation stabilizes, said Prime Minister Karim Massimov. Previously, the budget was planned based at $ 40 per barrel.

DAVOS, 22 Jan. The government of Kazakhstan has been testing various scenarios of the country’s budget at an oil price of 30, 25 and 20 dollars. priced at 16 dollars, said Prime Minister of Kazakhstan Karim Massimov.

“We planned the budget for 2016 at the rate of 40 dollars per barrel. We have considered all scenarios — 30, 25, 20 and 16, the lower threshold. We now test all these figures,” — said Massimov.

The Prime Minister added that “now to take any hasty decisions too early”. “We need to wait a few more weeks. Let’s see what about the situation everything will stabilize, and will continue to do this correction (fiscal policy — ed.)”, — said Masimov.

At the end of December 2015, the President of Kazakhstan Nursultan Nazarbayev signed the law on ratification of the loan agreement with the Asian development Bank (ADB) for $ 1 billion, the loan will be used to Finance the budget deficit, which will support the main priorities of socio-economic development of the country and the implementation of policy measures by the government to stimulate the economy and promote economic growth.

International rating Agency Fitch Ratings in October 2015 declared that expects reduction in 2016 the budget deficit of Kazakhstan to 0.2% of GDP, mostly as a result of higher oil prices ($60 per barrel) against the expectations of the government ($40 per barrel). In 2017 the budget will reach a surplus, believed then to Fitch.