Targeted transfers from the National Fund will be limited

The size of a targeted transfer can no longer exceed 30% of a guaranteed transfer / Photo: Deliya Aydaraliyeva, photo editor: Dastan Shanay

Kazakhstan’s government will limit the size of the targeted transfer from the National Fund, following multiple requests from the National Bank, which supervises the fund’s assets. The Ministry of National Economy has finally agreed with the financial regulator’s proposal and introduced concrete initiatives, according to Vice Minister of National Economy Azamat Amrin.

Every year, the cabinet resorts to assets from the National Fund to cover the state budget deficit through two types of transfers: guaranteed and targeted. A guaranteed transfer depends on the cut-off price for oil and has been set at $3.9 billion for the next three years. In contrast, a targeted transfer has no limits. For example, it amounted to approximately $3.1 billion last year but was later increased to $7.1 billion.

Targeted transfers will now be restricted by a budget rule: such transfers cannot exceed 30% of the guaranteed transfer.

«This means that the guaranteed transfer of $3.9 billion is the ceiling. Therefore, the targeted transfer is just $1.1 billion. This is why in our budget projections for 2026, 2027 and 2028, we are setting a ceiling for the amount we can withdraw from the National Fund. This limit is $5.1 billion,» Amrin emphasized.

This year, the government plans to withdraw $11 billion ($3.9 billion in guaranteed transfers and $7.1 billion in targeted transfers). According to the Budget Code, targeted transfers must be used to finance projects of national importance, subject to presidential approval. However, starting from 2026, no such transfers are expected to be included in the state budget.

Commenting on these transfers, Amrin stated that the cabinet aims to reduce its dependence on the National Fund. To cover rising expenses, the government must undertake tax reforms to increase tax revenue for the state budget.