Kazakhstan's 2025 budget deficit reaches 2.5% of GDP

ALMATY. May 21 (Interfax) - Kazakhstan's national budget deficit for 2025 reached 2.5% of gross domestic product, or 4.065 trillion tenge, Deputy Finance Minister Dauren Temirbekov said Thursday.

Presenting the government's 2025 budget execution report to the Mazhilis, the lower house of parliament, Temirbekov said budget revenues stood at 21.382 trillion tenge, or 98.8% of the planned target. Expenditures amounted to 25.447 trillion tenge, also 98.8% of the target. Revenue excluding transfers stood at 15.3 trillion tenge, or 97.9% of the 15.6 trillion tenge target.

Tax collections fell short, partly due to lower prices for key export commodities.

"The main factors behind the shortfall were a $6 drop in oil prices compared with budget projections, a 2.4% decline in export volumes to three countries amounting to $1.7 billion, a 5.3% drop in lead prices, and a 17% increase in customs and tax breaks compared with 2024, totaling 204 billion tenge," Temirbekov said.

He said these factors, combined with the geopolitical situation, led to a 36% decrease in tax revenues from 134 major enterprises, or 709.3 billion tenge.

Yulia Engel, a member of the Supreme Audit Chamber, said the tax shortfall was also driven by "an overly optimistic forecast of tax revenues."

"At the revenue forecasting stage, we noted the use of inflated parameters and additional receipts not provided for by the revenue forecasting methodology," Engel said.