ATAMEKEN DISCUSSES THE BUDGET DEFICIT FOR "BUSINESS ROAD MAP 2020"
Local executive bodies have to find additional reserves to support entrepreneurship
"Atameken", at the conference call, discussed the implementation of the "Business Roadmap 2020" Single Program, its financing and prolongation. Yulia Yakupbayeva, Deputy Chairman of the Board of the "Atameken" NCE RK served as the moderator.
This year, as in the previous one, the National Chamber continues receiving appeals from the RCE and business entities regarding the lack of funds to provide financial support for the implementation of existing and new projects under the Unified Program.
It should be noted that the Business Road Map 2020 program provides businesses with more and more opportunities, increasing entrepreneurs' access to financial mechanisms. For example, in 2017, KZT 48.3 billion was allocated for the implementation, and the amount of taxes paid for 2017 (KZT 217 billion) exceeded the state expenditures for the Program by 4 times.
However, as Yulia Yakupbayeva noted, regardless of the indicators, the funding situation in 2018 is unclear. Also she asked the representative of the MNE RK to clarify this issue.
"We should give a clear signal to business. Either we bring existing projects to the logical end, or we make commitments to new projects. So what is the priority? Earlier it was announced that the regions would find their own funds from the budget, and many did so. How to behave this year? Beginning of the year has already shown for sure that the funding won’t be enough for this year," - Yulia Yakupbaeva pointed out.
The current situation was voiced by Nurlan Akshanov, Deputy Chairman of the Board of the Damu EDF.
"For this year, KZT 29.7 bln was put up to the transfers, about KZT 14 bln were already received from the akimats, thus their debt is about KZT 15 bln. In most regions, there is such a situation that the funds are sufficient only for previously accepted obligations. Only Ust-Kamenogorsk, Kyzylorda and Astana possess money for new projects. The total deficit now amounts KZT 4.5 bln," - Mr. Akshanov noted.
In addition, Deputy Chairman of the Damu EDF pointed out that there had been changes in the procedure for subsidizing, which allowed the credit committees to significantly speed up the consideration of applications.
In turn, the managing director of the department of regional development of the "Atameken" NCE RK Fatima Gerfanova told about the regional patterns nowadays.
"10 regions out of 16 already have needs, or they are forecasted to appear in the second half of the year. According to the results of the last year, the total demand will arise in the amount of KZT 13.3 bn. At the same time, there are already 5 regions which has a deficit on existing obligations. For 3 months of this year, in a number of regions were not conducted the Regional Coordinating Council (RCC) on reviewing new applications," - Fatima Gerfanova said.
Chingiz Akhmetov, Deputy Director of the department of business development of the MNE RK also made some comments.
"This year, 8 regions do not have enough funds to cover the obligations, another 10, in general, aren't able to cover projects that were approved, but not signed. In other words, entrepreneurs are waiting while the project is approved, but the contract is not actually signed. Today the issue of additional financing has not been resolved yet. Therefore, local executive bodies need to find their additional reserves to support entrepreneurship," - Chingiz Akhmetov stated.
Ministry of National Economy of the Republic of Kazakhstan and the Damu EDF have announced important information for the sector:
1) The subsidization of previously approved by RCC large business projects will be continued. The ban on financing large businesses only applies to new projects.
2) RCCs will consider new projects until 2020 inclusively.
MNE RK will sent relevant explanations in the "Atameken" NCE RK.
"Atameken" initiated to conduct an audit of all projects participating in the BRM 2020 Program in conjunction with the MNE and Damu EDF, with the aim of optimizing the allocation of funds between existing and new projects.
"Atameken" NCE RK is planning to continue discussion on the issue of additional financing of the "BRM 2020" Program at the level of the Government of the Republic of Kazakhstan.
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