On September 1, the Head of State, Kassym-Jomart Tokayev, delivered his annual Address to the People of Kazakhstan at the joint session of the Chambers of the Parliament of the Republic of Kazakhstan. The Address, titled “Unity of the Nation and Systemic Reforms – A Solid Foundation for the Country’s Prosperity”, was devoted to the following key issues:
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economic development of the country in the post-pandemic period;
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improving the efficiency of the healthcare system;
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ensuring quality education;
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enhancing regional policy;
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forming an effective labor market ecosystem;
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political modernization and protection of human rights;
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social consolidation as the main factor of further progress.
It should be noted that several issues raised by the President are directly related to the objectives assigned to the “Baiterek” Holding. In particular, this concerns the adoption of specific measures to support businesses at all levels under the “Economy of Simple Things” and “Business Road Map” programs, whose implementation has been extended until 2022.
In his speech, the President stated:
“The merger of the Baiterek and KazAgro holdings has been completed. The number of portfolio companies has been reduced by half, and the staff size by one and a half times. As a result, a new, strong development institution has been established.”
Given that one of the country’s priorities is to align the agricultural subsidy policy with the state industrial policy, the Government and the “Baiterek” Holding have been instructed to prepare a package of proposals on this matter.
In addition, the Head of State put forward five initiatives to be considered in the near future:
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Review the minimum wage and increase its size, discontinuing its use as a benchmark indicator for taxation and other areas;
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Develop measures to encourage businesses to raise employee wages, including preferential access to regulated procurements and government support;
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Reduce the unified payroll tax for micro and small businesses from 34% to 25%;
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Increase the salaries of employees in the cultural sector, technical staff, drivers, and representatives of other professions;
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Develop a program for affordable housing mortgages.
The Address emphasizes that housing remains one of the most important issues for citizens. By instruction of the Head of State, a comprehensive housing program will be developed.
“Its administrator will be Otbasy Bank, which will be transformed into a national development institution. The bank will be tasked with maintaining housing records and allocating housing to citizens through a ‘one-stop-shop’ principle,” said Kassym-Jomart Tokayev.
The President also positively assessed the initiative to allow early use of pension savings and commented on the further use of such funds:
“To sustain this trend, I believe it is necessary to permit the transfer of part of pension savings exceeding the sufficiency threshold to accounts at Otbasy Bank for subsequent housing purchases. This will also help promote a culture of saving and responsible financial management,” the President noted.
In conclusion, Kassym-Jomart Tokayev summarized the Parliament’s work during the current year and emphasized the need for thorough and high-quality drafting of legislative initiatives in the future.
Read the full version of the Address at the following link:
https://www.baiterek.gov.kz/ru/president-messages/poslanie-glavy-gosudarstva-kasym-zhomarta-tokaeva-narodu-kazakhstana