BUSINESS & ECONOMICS
11/24/08
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Officials in Kazakhstan say they will scale back spending plans, as falling energy prices force Astana to make budgetary recalculations.
Kazakhstan is Central Asia’s largest oil producer, with the commodity accounting for roughly 60 percent of the country’s exports. Current budget and revenue projections are based on an oil price of $60 per barrel.
"Today we have to forget about a period when oil prices were so high," Prime Minister Karim Masimov said on November 24. "Today we are entering a new cycle. I’ve ordered the Economics Ministry to recalculate the 2009-2011 budget setting a price of $40 [per barrel] for 2009, and $50 per barrel] for 2010-2011."
Masimov emphasized that core spending on social welfare needs would remain at current levels. The prime minister also announced that the government would be allocating $5 billion in state-controlled funds to support the country’s sagging real estate sector. [For background see the Eurasia Insight archive].
Posted November 24, 2008 © Eurasianet
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