Kazakhstan proposes cutting quasi-state sector instead of social spending
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Kazakhstan's government has proposed reducing the quasi-state sector workforce rather than cutting social spending, according to Exclusive.kz. The plan aims to reallocate funds to social programs without increasing the budget deficit.
The Proposal
The government has proposed reducing the quasi-state sector, which includes state-owned enterprises and entities with state participation, as an alternative to cutting social spending. The measure is intended to free up budgetary resources for social programs such as healthcare, education, and pensions. According to Exclusive.kz, the proposal was presented by the Ministry of National Economy.
Quasi-State Sector Size
The quasi-state sector employs approximately 1.2 million people, according to official data. The government has not specified the exact number of positions to be cut. The sector's wage bill accounts for a significant portion of the budget, making it a target for optimization.
Social Spending Context
Social spending in Kazakhstan has been under pressure due to lower oil revenues and the need to maintain fiscal discipline. The government has committed to preserving social obligations despite the economic slowdown. The proposal comes amid broader discussions on budget efficiency and public sector reform.
What's Next
The proposal is expected to be discussed in parliament in the coming weeks. It remains unclear whether the cuts will be implemented and how they will affect the quasi-state sector's operations.
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Kazakhstan proposes cutting quasi-state sector instead of social spending
