The government of Kazakhstan assesses its national debt level as low and safe, according to a response from Prime Minister Olzhas Bektenov to a parliamentary inquiry, reported by Kursiv.kz.
As of October 1, 2024, Kazakhstan's national debt amounted to 30.5 trillion tenge (approximately $57.7 billion), representing 22.6% of the country's GDP. This figure falls well within the borrowing limits established by the Concept of State Finance Management until 2030, which stipulates that:
- National debt must not exceed 32% of GDP,
- Government debt must remain below 27.5% of GDP,
- Combined government and quasi-government debt must not surpass 53.2% of GDP, and
- Servicing government debt must account for no more than 10% of the national budget's expenditures.
Prime Minister Bektenov stated that these thresholds are being adhered to, and Kazakhstan’s debt management policy aligns with international practices, where a debt-to-GDP ratio of 50-60% is considered safe. He added that major international credit rating agencies assign Kazakhstan high ratings, reflecting the country’s financial stability and capacity for long-term economic growth.
The government, based on recommendations from the Supreme Audit Chamber, is analyzing 19 indicators of national debt vulnerability, drawing from European Union experience. This analysis aims to refine the State Finance Management Concept by incorporating new indicators.
Additionally, the proposed Budget Code will mandate a 10-year forecast for Kazakhstan's development. This forecast will address external and internal economic conditions, socio-economic effects, fiscal risks, and projections for state finances. It will also require analysis of international debt capital markets.
Earlier, Minister of National Economy Nurlan Baibazarov noted that strengthening of the U.S. dollar could increase Kazakhstan's national debt. However, this impact is expected to be offset by higher tax revenues from exporters who benefit from dollar-denominated sales of goods and raw materials.
CentralasianLIGHT.org,
December 3, 2024