No pressure of high oil prices on economy

“With the oil price standing at $ 115 per barrel, the Kazakhstan economy is not experiencing any pressure on its macroeconomic indicators”, Finance Minister said during the on-line conference arranged by Bnews in Astana on Friday, Profinance.kz reports. He reminded that all the windfall revenues from extraction sectors are accumulated in the National Oil Fund that was created in 2000 as a stabilization fund that ensures the economy of the Republic of Kazakhstan will be stable against the price swings of oil, gas, and metals. “The direct revenues of growing oil prices are accumulated in the Oil Fund. An annual transfer of $ 8 billion to the state budget to finance development projects does not depend on the oil price”, the Minister said. “However, indirect impact is exerted on the state budget through overall economic growth and growing revenues from non-extraction sectors”, the Minister said. This year’s state budget relies on economic development forecast for 2011-2015, with global price for oil standing at $ 65 per barrel. Regarding the national budget, Minister of Finance Mr Bolat Zhamishev earlier announced that budget revenues in 2011 are estimated at $ 29.1 billion, which means a 20% growth against 2010, with budget expenses estimated at $ 33.9 billion. Budget deficit is estimated at 2.9% of the GDP.