As a result of the outstripping growth of state budget revenues (+45% yoy) over its expenditures (+15% yoy), the state budget balance for the first time in four years developed a surplus in 1Q2022, amounting to KZT0.2 trillion. A significant increase in income was provided mainly by an increase in tax revenues from large mining companies in the country. In turn, a significant rise in budget revenues led to a decrease in the use of transfers from the National Fund by 4% yoy. At the same time, against the background of the continuing increase in budget expenditures, there is a further growth in the government debt, which at the end of the 1st quarter amounted to KZT19.2 trillion (+8.7% yoy).
In the context of heightened geopolitical tensions and accelerating inflation, in April of current year the government decided to additionally increase government spending in 2022 to 18% yoy (the previous plan provided for an expansion in spending by 3% yoy). As a result, the state budget deficit in 2022 will widen from KZT2.9 trillion to KZT3 trillion (T2.5 trillion in 2021).
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