The Week in Kazakhstan: Fined, Sealed, Delivered

Government and Politics Kazakhstan’s President Kassym-Jomart Tokayev dissolved all local assemblies (maslikhats) on October 12 and the Central Election Commission called snap elections for November 29.The majority of the seats in all maslikhats nationwide had been held by members of the now-defunct Amanat party, which was absorbed by the new ruling party, Adilet, in June.On October 14, Prime Minister Olzhas Bektenov said that the government is preparing a social security reform that will eliminate certain benefits for “well-off” citizens.During a speech at the Kurultai, Kazakhstan’s parliament, Bektenov said that these measures will save the government 700 billion tenge ($1.6 billion) in 2027 alone.For reference, Kazakhstan’s 2025 budget amounted to 29.8 trillion tenge ($66.7 billion). Finance minister Madi Takyiev told the Kurultai on October 14 that Kazakhstan could borrow up to $2 billion on international markets, in an effort to cover the country’s budget deficit in 2027.According to Takiyev, the 2027 deficit is projected to reach 4.6 trillion tenge ($10.1 billion). The government has often plugged the budget hole with transfers from the National Oil Fund.Between January and September, tax revenues increased by 3 trillion tenge ($6.6 billion), or 18.2%, according to minister of economy Serik Zhumangarin.During a government meeting on October 13, Zhumangarin explained that the increase stemmed from a fiscal reform introduced at the beginning of the year, which saw the VAT rate rise from 12% to 16%.