KAZAKHSTAN

The Republic of Kazakhstan is a unitary country with a hybrid system of government, with a parliamentary system and a powerful President as head of state. Independent from the Soviet Union since 1991, the country’s last elections were held in 2019 and the new president was elected by popular vote for a five-year term. The Kazakhstan parliament is the supreme legislative body and consists of two chambers, the Senate (Upper House), with representatives elected from regional assemblies, and the Mazhilis (Lower House).

The current Constitution of Kazakhstan, enacted in 1995, established in Art. 85-89 the system of a “mixed” system of local governance (both deconcentrated and decentralised), which is composed of local governments (Akimats) and local assemblies (Maslikhats), which only have budgetary and tax-raising powers. The lowest local government-tier, composed of rural villages, is the only one with directly elected executive heads (Akimats). At city, district, and regional level, the local assemblies (maslikhat) are directly elected. However, each tier of government is subordinated to the tier above it, which tends to consolidate central control over lower levels.

Since its independence, the country has gone back and forth in the granting of more autonomy to local governments, through fiscal and functional decentralisation reforms. While in the years following independence, the regional entities developed significant powers as they captured most of the revenues generated by the extraction of natural resources, this led the central government to strengthen centralization to reassert its power. In 2009, both akims and maslikhats were officially re-defined as local government and self-government agencies, although most heads of the local administrations (Akims) are still appointed and accountable to the Kazakhstan president, which limits the accountability of local governments.

Since 2012, the country has engaged in a decentralisation process as part of the country’s national development plan entitled “Kazakhstan 2050: new political course for Kazakhstan in a fast-changing world”. The 2012 “Concept of Local Self-Government development in the Republic of Kazakhstan marked a first step by introducing the indirect election, in 2013, of some akims of towns, villages and settlements with “rayon” status (91.5% of akims). In 2017, new reforms have been launched to redistribute executive powers from the president to the parliament and ministries, towards more open and efficient governance. “Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the Development of the Local Self-Government” were adopted in July 2017 to further increase local self-governance, as announced in the national “100 steps” programme.

Decentralisation was deepened in January 2020 as part of a reform to strengthen the local self-governments. The first direct elections of 730 rural akims took place in June 2021, as part of the reform to strengthen the institution of local self-government. The “Concept for the development of local self-government in the Republic of Kazakhstan until 2025”, approved by the President in 2021, outlined the main tasks of the government to achieve greater decentralisation. These tasks include, among others, the adoption of a new law “On local self-government in the Republic of Kazakhstan in 2023”, and the introduction of direct elections for akims of larger cities and districts in 2024 (they are currently appointed by the central government).

The Regional Development Program 2020-2025 focuses on cities and regions as the main drivers of national economic development. It aims to increase the competitiveness of regions through the development of functional urban areas, of “mono-towns” (between 10 thousand and 200 thousand inhabitants) and of rural settlements in parallel. In October 2021, the central government adopted another important development strategy “Strong regions – the driver of the country’s development”, whose objectives for the period 2021-2025 include ensuring equal access of the population to basic

services, and improving housing and transport connectivity.

TERRITORIAL ORGANISATION
MUNICIPAL LEVEL	INTERMEDIATE LEVEL	REGIONAL LEVEL	TOTAL NUMBER OF SNGs (2022)
48 small “cities of district significance”, 2 186 rural districts, 85 villages, 26 urban settlements and 4 593 rural settlements (aul)	37 large “cities of regional significance” and 179 districts (rayons)	17 regions (oblasts) and 3 “cities of national significance”
Average municipal size: 7 171 inhabitants
6 938	216	20	7 174

OVERALL DESCRIPTION: The vast territory of the Republic of Kazakhstan is organised according to a three-tier government system established by the 2001 Law on Local Public Administration and Self-Government. On March 23, 2019, the capital city of Astana was renamed the city of Nur-Sultan by Presidential Decree of the Republic of Kazakhstan.

REGIONAL LEVEL: At the upper level, there are 17 regions (oblasts) and three Republican cities with a special status: Almaty, Nur-Sultan (previously named Astana), and Shymkent (which changed status in 2018). In June 2022, three regions were split, leading to the creation of three more regions and to a total of 17 regions compared with 14 regions in 2019. They are headed by a regional governor (regional/city akim) who is appointed by the president, and they have a regional/city council elected by universal suffrage (regional maslikhat).

Kazakhstan’s regions are sparsely populated, with an average population size of around one million inhabitants per region, which incurs significant challenges for ensuring public service delivery efficiency. In terms of population density, the median value is well below the one of OECD countries, despite the high concentration in Nur-Sultan, the capital city (1 203 inhabitants per square kilometre) and Almaty (1 997 per square kilometre). Territorial inequality among Kazakhstan’s oblasts is very high by OECD standards. In 2013, GDP per capita in Atyrau was more than 6 times higher than that of South Kazakhstan, the lesser-performing region. Whereas the population is increasing in southern and western regions, it is declining in regions in northern and eastern regions.

INTERMEDIATE LEVEL: At the intermediate level, there are 179 districts (of which 16 are city districts and the rest rural), and 37 cities of regional significance. District executives are appointed by the regional governor (or by the mayor in the case of city districts) while the council is directly-elected (city or district maslikhat).

MUNICIPAL LEVEL: The lower level includes 48 “cities of district significance”, 2 186 rural districts, 85 villages, and around 5 000 settlements recognised as local self-governments (aul). A 2013 law, amending the 2001 law, introduced a measure of decentralisation, most importantly the election of local akims through direct suffrage by local level councils, and an increase in their financial and economic independence. The central government also plans to formalise the work of local assemblies by creating a representative body at village level, the kenes.

The 2001 law on Local Public Administration and Self-Government, regularly amended, broadly defines the general division of competences of regions (Art. 29), rayons and cities of regional significance (Art. 31) and aul and cities of district significance (Art. 34). In Kazakhstan, the central government (budgeting and designing) and the governments of both oblasts and rayons (implementation) are jointly responsible for most services. The tasks of the three levels often overlap. Regions are primarily responsible for coordinating the work of districts and designing local administrative management schemes. District governments (intermediary level) have extensive responsibilities, including education (pre-school, primary, basic and secondary education, vocational training), healthcare, social assistance, transport and local roads, environmental protection, public sanitation, fire protection, public order, culture, water supply and sewerage. At the municipal level, local governments have responsibilities related, for the most part, to local development, cultural preservation and local service provision.

The Republic of Kazakhstan considers decentralisation and regional development reforms to be of high priority (cf. the Strategy Kazakhstan-2050, Kazakhstan Plan of the Nation). Consequently, a new division of powers and responsibilities between the central government and subnational governments is currently being developed, in-between decentralisation and deconcentration, including the transfer of competences in healthcare in the penitentiary system to the intermediate levels.

Main responsibility sectors and sub-sectors
SECTORS AND SUB-SECTORS	Regional level	Intermediate level	Municipal level
1. General public services (administration)	Military conscription; Civil registration; Regulatory and control functions	Property management; License issuance for business activities; Construction permits for communal facilities	Notarial actions; Civil registration
2. Public order and safety	Military mobilisation; Civil protection	Fire brigades; Prevention policies regarding earthquakes and terrorism
3. Economic affairs / transports		Development plans for the districts; Development of entrepreneurial activity; Agriculture; Communication and engineering infrastructure (water, heat and electricity grids, etc.); Transportation and local roads
4. Environment protection		Energy efficiency; Sewage disposal plants; Waste disposal and collection; Preservation of nature and parks; Air quality
5. Housing and community amenities		Land development plans; Design of public spaces; Construction and maintenance of water pipes; Public housing; Street cleaning	Land regulation; Public housing; Development of local social infrastructure; Cemeteries
6. Health	Provision and financing of healthcare services	Primary healthcare (medical centres); Preventive healthcare; Hospitals	Village organisations regarding healthcare services; Emergency care
7. Culture & Recreation		Historical buildings and culture; Theatres; Museums; Libraries; Sports; Leisure	Protection of historical and cultural heritage; Sport infrastructure
8. Education	Pre-primary and primary education; Secondary education; Vocational education	Pre-primary and primary education; Secondary education; Vocational education
9. Social Welfare		Pensions; Unemployment benefits; Maternity benefits; veterans; Child benefits; Orphanages; Social adaptation and rehabilitation of convicted persons	Assistance to the disabled and to the unemployed

Scope of fiscal data: Almaty, Nur-Sultan and Shymkent cities, oblast bodies and budgetary local government units.

SNA 2008

Availability of fiscal data: High

Quality/reliability of fiscal data: High

GENERAL INTRODUCTION. Kazakhstan’s decentralisation remains quite asymmetric. Some functions are delegated to subnational tiers of government while they remain fiscally dependent on the central government through the intervention of the Ministry of Finance, which oversees local budgets. Decisions related to tax administration, budget approval, planning and development of regions are made at the national level and implemented by local executive bodies through a strict hierarchy of subordination of local authorities to a higher level. The Taxes and Other Mandatory Payments Act (1995) introduced the concept of “state and local taxes”, however the concept of “local tax” was excluded from the tax law in 1999. Local government own-source revenues are marginal and their scope for fiscal initiatives is very limited. Most regions, apart from the city of Almaty and the oil rich regions, suffer from fiscal imbalances.

With the 2018 Law on Development of Local Self-Government, the country has devolved municipal governments with more than 2 000 people to have control over their own budgets. This represents a “fourth-level budget”, in addition to those at national, regional and intermediate levels. Municipal governments were also devolved a part of communal property and the authority to control the targeted use of land plots.

Subnational government expenditure by economic classification
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total expenditure	2 946	11.0%	44.5%	100%
Inc. current expenditure	2 050	7.7%	37.0%	69.6%
Compensation of employees	688	2.6%	70.3%	23.4%
Intermediate consumption	826	3.1%	49.6%	28.1%
Social expenditure	78	0.3%	3.5%	2.6%
Subsidies and current transfers	-	-	-	-
Financial charges	2	0.0%	0.7%	0.1%
Others	0	0.0%	0.0%	0.0%
Incl. capital expenditure	895	3.4%	83.6%	30.4%
Capital transfers	62	0.2%	50.0%	2.1%
Direct investment (or GFCF)	833	3.1%	88.0%	28.3%

EXPENDITURE: Subnational government expenditure is below the OECD on average as a share of GDP (20.6% in 2020) but in line in terms of public expenditure (vs. 43.5% in the OECD). Subnational governments are key public employers. Subnational government staff spending accounted for 70% of public staff spending, a share higher than in the OECD on average (61%) in 2020.

These figures hide a significant part of deconcentrated spending, but some efforts are being made to enhance the control of local governments over their expenditure. Since 2018, rural communities with more than 2 000 inhabitants have the power to independently approve their budgets, via public consultation with the population, to determine the main areas of expenditure and their priorities.

DIRECT INVESTMENT: Subnational government investment is relatively high as a share of GDP and public investment, above the OECD average (1.9% of GDP and 54.6% of public investment in 2020). Investment accounted for a large share of total subnational government spending, which is also above the OECD average (11.3%), confirming that investing is a key function of subnational governments. In practice however, subnational governments largely act as paying agents of the central government to implement national investment plans. The economic role of the lower tiers of government is often downplayed and regional and local administrators largely execute central level directives.

The central government continues to prioritise public-private partnerships (PPPs) as a delivery mode for both economic and social infrastructure at national and regional levels. It has put in place a legal and institutional framework for preparing PPPs at both the national and regional levels, including a Concessions Law adopted in 2006 and a PPP Law adopted in December 2015. Kazakhstan has set up a Kazakhstan PPP Centre. Several PPP units for developing PPP projects have been established by most regional governments. Consequently, the number of PPP contracts reached up to 1 361 as of July 2022, out of which only 10 were made at the national level. Most PPPs were implemented in sectors such as health care, education and sports and recreation facilities. This proliferation however raises questions over the quality of contracts and their future sustainability, as regions often have a limited and uneven capacity as well as inadequate resources to prepare projects.

Kazakhstan’s regional development strategy aims to build a more diverse economy (State Programme for Industrial and Innovative Development – SPIID, 2020-2025). 13 Special Economic Zones (SEZ) have been established in Kazakhstan, each in a separate region, to support the development of economic sectors other than natural resources. Kazakhstan’s new regional development approach tends to focus on select regions as growth drivers, particularly in the city of Astana. The Nurly Zhol State Infrastructure Development Programme for 2020-2025 focuses on developing road infrastructure, including local roads. In addition, the “Concept for the development of local self-government in the Republic of Kazakhstan until 2025”, approved by the President in 2021, lists among its priorities the upgrading of infrastructure in 3 500 settlements to reach harmonised regional standards.

Subnational government expenditure by functional classification
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total expenditure by economic function	2 946	11.0%	-	100%
1. General public services	226	0.9%	14.3%	7.7%
2. Defence	6	0.0%	1.4%	0.2%
3. Security and public order	74	0.3%	29.6%	2.5%
4. Economic affairs/transports	819	3.1%	57.5%	27.8%
5. Environmental protection	101	0.4%	77.6%	3.4%
6. Housing and community amenities	374	1.4%	57.9%	12.7%
7. Health	139	0.5%	18.3%	4.7%
8. Recreation, culture and religion	134	0.5%	70.5%	4.5%
9. Education	904	3.4%	70.2%	30.7%
10. Social protection	168	0.6%	9.7%	5.7%

In Kazakhstan, the primary responsibilities of subnational governments in terms of expenditure concern education and economic affairs and transport sectors. Education is by far the largest sector of subnational government expenditure, accounting for almost 31% of total subnational government spending and 70% of total public spending on education. Local governments are in charge of financing teachers’ salaries and building maintenance in the education sector with the exception of higher education, specialised types of primary and secondary education (such as military schools and schools for gifted children), and the continuing training of civil servants, which are funded by the national government. The latter is also in charge of policy direction and administrative control. The second sector of subnational expenditure is economic affairs/transport (25.3% of total subnational government spending and 51.8% of total public spending in 2020 in this category), followed by housing and community amenities.

There has been a shift in recent years, with a decrease of the contribution of subnational governments to the health category (decrease from 15.7% of total subnational government spending in 2016 to 4.7% in 2020). On the other hand, legal amendments to the healthcare code have enabled a shift in several expenditures related to healthcare/private sector through PPP management models.

Subnational government revenue by category
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total revenue	2 834	10.6%	59.6%	100%
Tax revenue	1 087	4.1%	32.8%	38.3%
Grants and subsidies	1 711	6.4%	-	60.3%
Tariffs and fees	30	0.1%	-	1.6%
Income from assets	8	0.0%	-	0.3%
Other revenues	0	0.0%	-	0.0%

OVERALL DESCRIPTION: In Kazakhstan, public administration, finance and policymaking are highly centralised. Subnational governments do not have rate-setting power over taxes, as the central government has full fiscal authority over tax rates and the amount of tax revenue allocated between government tiers. The regional development strategy advocates for the delegation of more resources from the centre to subnational governments, and for enhancing subnational accountability and capacities. As part of the devolution to municipal governments of their own budget in 2018, they were allocated seven types of tax and non-tax revenues.

The bulk of subnational budget revenues is made up of central government transfers (60% of total subnational revenues vs. 41.2% in the OECD on average in 2020). Tax revenues accounted for 38.3% of subnational revenues, slightly below the OECD average in 2020 (42.4%). The shares of tariffs and fees and property income in subnational government revenues is particularly low, well below the OECD averages (13.3% and 2.0%, respectively). Yet the amount of subnational revenues compared to public revenues has been increasing since 2013 (when it accounted for 37.2% of total public revenues).

TAX REVENUE: Subnational government tax revenues accounted for 4.1% of GDP and 32.8% of public tax revenues in 2020, an increase since 2016, yet the figures remain below the OECD averages (7.2% of GDP and 32.3% of public tax revenue). All taxes are collected centrally by the Ministry of Finance and its local branches and are redistributed via an equalisation mechanism. Tax revenues are primarily generated by tax sharing arrangements, based on the sharing of the personal income tax (PIT) and the social tax on payroll and work force. Both accounted for around 60% of subnational government tax revenues in 2019 (respectively 32% and 29% of subnational government tax revenues and 16.5% and 12.6% of subnational government revenues). Since 2020, revenues from the Corporate Income Tax (CIT) paid by SMEs were transferred from the central government to the regions. Tax revenue from the CIT represented 17% of subnational government tax revenue in 2020, and 6.4% of total subnational government revenue. Whereas it aims to incentivise local governments to develop their local economic bases in order to generate more taxes in return, this tax is particularly volatile (for instance, in 2020, the city of Almaty concentrated up to 38% of the total CIT from SMEs at the country level), which could lead to an increase in competitiveness and disparities across subnational governments.

The revenues of regions (oblasts) mainly come from the PIT, the social tax based on payroll and the newly introduced CIT paid by SMEs. Local governments at lower levels are assigned the land and property tax, which represents around 13% of districts’ (rayons) tax revenues. Rayons can revise the tax rate on land and property within a 20% limit depending on the characteristics of the property and the land. They also receive part of the excise taxes on alcohol, tobacco and petroleum products (11.4% of subnational government tax revenues and 4.4% of subnational government revenues). Since 2018, rural communities have their own budgets, which include revenue from the land tax and other fees.

Overall, the land and property taxes accounted for 10.8% of subnational government tax revenues and 4.1% of subnational government revenues in 2020, i.e. 0.4% of GDP, which is below the OECD average (1.0% of GDP in 2019). Other taxes include those on transport or environmental emissions, whose rates can be set by subnational governments (they can set the rate of environmental emissions charges, within a prescribed scale, and the rate for the use of water resources), which help strengthen subnational government public finances.

Participatory budget mechanisms are being experimentally deployed at the regional level. In the State of the Nation Address 2021, the President announced that further reforms should be implemented to increase the revenue sources of regions.

GRANTS AND SUBSIDIES: Subnational governments receive both targeted transfers and subsidies, subject to change every three years, which make them a volatile source of revenue for subnational governments. Earmarked transfers include the targeted investment transfer, dedicated to regional and local infrastructure and one-off expenditures (e.g. hosting a large international sporting event). Non-earmarked transfers serve to compensate for the difference in revenues in each region and are calculated based on the estimated number of budgeted services’ ‘customers’ in the region, as well as objective regional factors. Discussions are ongoing in the short term about changing the methodology for calculating transfers and replacing the existing spending approach by a standard cost assessment method based on the provision of public services.

Grants to subnational governments also include funds coming from the equalisation of tax revenues between regions, which aim to reduce disparities. The equalisation process is assessed during the annual budget process based on each region’s projected expenditures and revenues, and on estimates derived from historical trends and inflation. When expenditure exceeds revenues, additional funds (subsidies) are allocated to the national budget, and then reallocated to regionsin deficit. Conversely, in the case of a surplus, regions are subject to withdrawals, retaining only the amounts they need in order to finance their expected expenditure.

Overall, the share of capital grants within total subnational government grants is decreasing, as capital grants accounted for 17.5% of transfers in 2020 (stable since 2016) and current grants, 82.5%, compared to 28% and 72% in 2013.

OTHER REVENUE: In addition to grants, subsidies and tax revenues, oblasts can collect local administrative fees over which they have some leeway and charge for their services, such as pollution charges, groundwater resources and fees related to the natural landscape. They can also assess fines and penalties and benefits from property income (sale of capital assets and dividends from local public companies).

As part of the transfer of additional revenue sources to the municipal level over the period 2021-24, rural local governments will be progressively able to perceive revenues from the sale or leasing of land plots, fees for the use of water resources, as well as license fees for the right to engage in certain types of activities

Subnational government fiscal rules and debt
2020	Dollars PPP / inh.	% GDP	% general government debt	% SNG debt	% SNG financial debt
Total outstanding debt	86	0,3%	1,9%	100%	-
Financial debt	86	0,3%	2,0%	100%	100%
Currency and deposits	-	-	-	-	-
Bonds / debt securities	-	-	-	-	-
Loans	-	-	-	-	-
Insurance pensions	-	-	-	-	-
Other accounts payable	-	-	-	-	-

FISCAL RULES: Results-based budgeting is in the process of being extended to local government, in particular in the framework of agreements between national and local executive bodies on the performance of fiscal transfers. The regions (oblasts) and special-status cities are required to develop budget programmes, approved by the relevant local elected bodies. For targeted transfers to subnational governments, performance indicators and targets are reflected in local budget programmes. Efforts are also being made to develop Civil Budgets to make national and local budgets more easily accessible to the public.

DEBT: Subnational governments are able to borrow through loans from the central government or from another subnational government at a higher level (oblast) in order to cover fiscal deficits and finance investments, but they are subject to strict debt management rules. Quotas for annual local borrowing and total local debt are fixed annually by the Budget Law. In addition, the government set new subnational government borrowing limits in 2009 (in a given fiscal year, annual payment and debt servicing costs should not exceed 10% of local budget revenue and total debt should not exceed 75%). Total liabilities for subnational governments remain, therefore, very limited.

The three special-status cities and the 17 oblasts are, on the other hand, able to borrow through bond issuance to cover their budget deficits and to finance the construction of public social housing, under strict control of the Ministry of Finance (including the exact use of borrowed funds). Following the COVID-19 pandemic, three cities of national significance have sharply increased their level of debt, primarily through local bonds issued through PPP arrangements. For instance, the debt of the city of Almaty, the largest city of Kazakhstan, doubled between 2019 and 2020, due to the large investments the city implemented through PPP agreements to modernise its infrastructure. As a result, bonds accounted for 98.9% of subnational government debt in Kazakhstan in 2020.

TERRITORIAL MANAGEMENT OF THE CRISIS: The challenges that arose from the COVID-19 pandemic have led the national government to call on local authorities, who were at the forefront of the crisis and its consequences, to take initiatives and responsibility for decisions on the introduction of restrictive measures in specific territories. As in many other countries, quarantine measures were implemented in larger cities to contain the spread of the virus.

However, in the centralised context of policymaking in Kazakhstan, the transfer of certain power to local authorities has been challenging, due to several factors: lack of preparedness of local authorities for such emergencies, lack of necessary resources in the regions and districts of the country, deficit of leadership and accountability of local governments towards citizens and lack of specific mechanisms for continuous dialogue with the population. The lack of accountability of regional governors, in particular, was an obstacle to rapid decision-making at the local level to implement solutions to the crisis.

In 2020, to increase the efficiency of the public administration and to involve all stakeholders, including the private sector and civil society in crisis response, the President announced the creation of an Agency for Strategic Planning and Reform, as well as the creation of the Supreme Council for Reforms, with the revision of the National Development Plan 2025. The country also adopted new or revised laws on data exchange, protection and inter-agency co-ordination, and developed new services such as digital vaccination passports.

EMERGENCY MEASURES TO COPE WITH THE CRISIS AT THE DIFFERENT LEVELS OF GOVERNMENT: The implementation of support measures against COVID-19 by the Kazakhstan government reached a total of 6.3 trillion tenge (over USD 14.7 billion) as of September 2021. Two packages of emergency anti-crisis measures have been adopted in 2020, including KZT 2.07 trillion (USD 4.8 billion) which has been allocated from the National Fund. Most measures to support household and business were created at the national level, and local governments were in charge of implementing these measures within their jurisdictions, such as allocating support packages to businesses and supervising the construction of local infrastructure (hospitals, etc).

Despite these measures, poverty has risen following the pandemic, mainly in rural areas, which are forecasted to endure longer-terms negative effects of the pandemic; hence new reform prospects that envision to devolve more accountability, power and resources to rural local governments.

IMPACTS OF THE CRISIS ON SUBNATIONAL GOVERNMENT FINANCE: The COVID-19 pandemic had a notable impact on central and subnational government budgets. Expenditure at both the general government and subnational government levels increased by respectively 23% and 31% between 2019 and 2020 (in real terms). Subnational direct investment has increased by 51% over the period, and financial charges and capital transfers each by more than 100%. Subnational government expenditure in the health sector increased by 97%, whereas they have decreased by 16% in the area of social protection. Subnational government revenue has also increased during the same period, driven by the transfer in 2020 of the share of the CIT paid by SMEs to the subnational government level, as well as by the increase of revenue from excise taxes (+33%).

Kazakhstan had a relatively low level of public debt prior to the pandemic and large fiscal space. Yet the Kazakhstan government had a tendency, since the COVID-19 pandemic, to increase the budget deficit and transfers from the National Fund. Total public debt increased by 48% between 2019 and 2020, whereas subnational government debt increased by as much as 369% over the same period. This was reflected mainly through a surge in subnational bonds issued by special-status cities (Almaty, Shymkent and Nur-Sultan). To counterbalance this trend, new fiscal rules are to be implemented in 2022.

ECONOMIC AND SOCIAL STIMULUS PLANS: The Kazakhstan government revised its Kazakhstan 2050 Strategy at the end of 2020, to take into account the COVID-19 pandemic. The Plan lists 10 national priorities, including “balanced regional development”. As stated by the President in his State of the Nation Address, regional governors will work alongside the central government to update Regional Development Plans in accordance with the approved national goals. The national plan also encompasses environmental priorities. The territorial plans help to improve understanding of the social and economic situation in each region, and to identify the competitive advantages of each region to support a comprehensive territorial development.

Kazakhstan 2050 Strategy also plans to extend digital accessibility, in particular to rural areas, and to reinforce regional sport infrastructure to sustain well-being.