Kazakhstan Government to try maintain inflation at 6-8 percent

Kazakhstan Government will try to keep inflation at 6-8 percent, Tengrinews.kz reports citing Kazakhstan Minister of Economic Development and Trade Kairat Kelimbetov as saying at the presentation of the 2012-2014 budget to the Majilis (lower chamber of Parliament) on September 12. Kairat Kelimbetov gave forecasts of social-economic development of the country for 2012-2016 and presented a draft law On guaranteed transfer from Kazakhstan National Fund for 2012-2014. His colleague Minister Bolat Zhamishev told about the parameters of the 2012-2014 budget. This information was presented two weeks ago at the Parliament’s sitting. Majilis deputies criticized optimistic inflation forecasts of the Parliament. According to calculations of the Ministry of Economic Development and Trade, inflation should not exceed 6-8 percent in 3 years. According to the deputy Vladimir Nekhoroshev, inflation level is already over 9 percent this year. “In my view, this is an absolute illusion and there are no reasons to indulge vain hopes,” he said. Kairat Kelimbetov replied: “The task of 6-8 percent is quite ambitious, but we are planning to achieve it. 6-8 is a cornerstone that is the foundation of our government's social-economic policies.” He added that despite of the growing food and fuel prices, the Government is planning to maintain this level jointly with the National Bank. In general, according to Kelimbetov, the budget’s expenses and revenues are quite balanced. For example, the budget’s salaries expenses and social payments will make 67.9 percent of the revenues next year. This year the value is 64 percent. Chairman of Majilis Commission on Finance and Budget Gulzhana Karagussova is sure that the risk of two-digit inflation should be foreseen in the budget. “Your inflation forecast is not conservative, but optimistic. As per the forecast of the World Economic Forum, the lowest expected inflation level is 10 percent. You have to foresee it in the budget. You have promised to do so, but you also have to calculate all these risks in advance and put some reserve money aside for it,” she said.