10 April 2008
President Nursultan Nazarbayev Receives a Group of Majilis Deputies of the Parliament of the Republic of Kazakhstan

Deputies Vladimir Bobrov, Zhaksylyk Doskaliev, Gulmira Isimbayeva and Rauan Shaekin reported to the President on legislation work targeted at the implementation of the Presidential Address.

Zhaksylyk Doskaliev, the Chairman of the Committee for social-cultural development of Majilis informed the President that budget expenditures on social sphere increased due to economic growth.

“We were in regions recently. People there are glad and express their gratitude to you,” Zhaksylyk Doskaliev said.

The deputy informed that expenditures on public health care were equal to 131 billion tenges in 2004. This year, 391 billion tenges will be spent on the development of the public health care system.

The President noted that increasing the life expectancy and decreasing the mortality rates are the main objectives of Kazakhstan’s public health care system. It is necessary to focus on five groups of diseases that are main reasons of the high mortality rates of Kazakhstan’s population namely those are cardiovascular diseases, infections, traumas, oncology, child and maternity mortality.

The State Program for reforming and developing the public health care system of the Republic of Kazakhstan in 2005-2010 implies a better supplement of public health care organizations with modern pharmaceutical production that will be distributed free of charge for some groups of population, construction of 156 public health care objects including 144 in rural area, reconstruction of 3000 thousands of ambulance organizations.

“This is a significant support. These allocated funds and their distribution must be under deputies’ control,” Nursultan Nazarbayev said.

Member of the Committee for social-economic development of Majilis Gulmira Isimbayeva reported to the President on the situation in Kazakhstan’s educational system.

“The teacher is the key element of school education. Now, their wage amounts correspond to administrative economy. We introduced a bill to the Government that suggests an adaptation of wage rates to market economy and will link teachers’ salaries to the quality of education,” Gulmira Isimbayeva said.

The President stressed that wage amounts must be differentiated according to the received results.

“An administrative reform is being implemented in Kazakhstan that establishes a dependence of the wage amount on the quality of work. The same approach must be introduced everywhere including education and medicine,” Nursultan Nazarbayev underscored.

Deputy Rauan Shaekin informed the President on the development of social-entrepreneurial corporations (SEC). Currently, there are seven SECs in seven macroregions of Kazakhstan namely Saryarka, Zhetisu, Ertis, Ontustik, Caspiy, Tobyl and Batys.

Rauan Shaekin also said that it is not clear to some businessmen what form of private property will be assigned to those enterprises in the structure of social-entrepreneurial corporations, which will be established with the participation of private capital. Issues of selling stocks of these enterprises also need some consideration.

“This is a new idea. There are no SECs in other CIS countries,” the President said.

The President underscored that Kazakhstan possesses a vast territory, which is divided into a small number of regions. There are seven SECs in fourteen regions. The mission of SECs is to assist to the economic development of regions by consolidating private and state capitals and by establishing a united economic market based on cluster approach.

“SECs were formed in order to create a competitive export-oriented economy, to manage assets, to involve local business in socially important projects, to allocate incomes on resolving social problems,” the President said.

Deputy Vladimir Bobrov talked to the President about the development of the Pavlodar region.

“Your decree on introducing examination moratorium of objects of small- and medium-sized business was enthusiastically greeted by the region’s entrepreneurs,” the deputy said.

Pavlodar’s entrepreneurs lay great hopes upon the new Tax Code that will redistribute tax burden in extracting industries of the economy. As a result, feedstock processing will be more attractive for manufacturers.

Vladimir Bobrov said that representatives of small business asked to reconsider the article of the acting Tax Code determining that individual entrepreneurs not hiring employees must have patent and their incomes must not be greater than two million tenges.

The President noted that currently the Government is considering the issues of introducing two different modes of special taxation regime. According to it, individual entrepreneurs and juridical entities will work having patent and will be able to hire 7 employees. Their annual incomes will not be greater than 12 million tenges.

The President also said that the issue of differentiating income taxes is under consideration now, which will oblige the rich to pay more taxes for elite real estates and expensive cars.

“We have to search for indirect taxes including those for luxury, and to reduce direct taxes for small business. Definitely, we cannot reduce taxes for exploiting natural resources,” Nursultan Nazarbayev emphasized.

“Residents of Pavlodar are sure in their future and asked me to extend their gratitude to you. Their mood is very good,” Vladimir Bobrov said.

At the end of the meeting, the President thanked the deputies for the fruitful discussion.

“You are representing the Nur Otan Party. Now, a large-scale work on the implementation of my address is being performed. State bodies control 149 orders. Nineteen bills, which will be required in order to implement our tasks, will be adopted this year according to nationwide plans of events.

The main task of the Nur Otan Party and deputies is to work on improving the life standards of Kazakhstan’s people,” Nursultan Nazarbayev said.

The Head of State noted that the global crisis would affect Kazakhstan’s economy. In this regard, Kazakhstan’s government must to dump inflation rates rather than pursue high economic growth.

“We will keep the social situation of our people unaffected. The Government decided to raise taxes for exporting oil, gas and other natural resources. This will give the country 170 billion tenges for social expenditures. We can also postpone the construction of some objects excluding housing, public health care and education buildings. That will give us additional 100 billion tenges for eliminating consequences of the crisis without money from the National Fund,” Nursultan Nazarbayev underscored.

“We have to see the whole picture. You and I are responsible for this country. The program for constructing 100 schools and 100 hospitals will be implemented,” the President concluded.

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