Official Source of the
Prime Minister of the
Republic of Kazakhstan
Close button

At least 3.5 million workers to feel overall effect of increase in minimum wage — Alikhan Smailov

Thursday, 23 September 2021, 19:07:45

A briefing on the implementation of the Address of the Head of State to the people of Kazakhstan “Unity of People and Systemic Reforms — Solid Foundation for the Country's Prosperity” was held in the government of Kazakhstan. At the Q&A session, First Deputy Prime Minister Alikhan Smailov answered questions from media representatives regarding the main topic of the briefing.

So, when asked whether the growth of the minimum wage will lead to a further rise in the cost of goods and whether it will "accelerate" inflation, as well as whether the budget of Kazakhstan will withstand the increase in the minimum wage, the Deputy Prime Minister replied that the increase in the minimum wage means the creation of additional demand for goods and services included in the consumer basket.

“According to the calculations, an increase in the minimum wage to 60 thousand tenge from the current 42,500 will contribute to inflation at the level of 0.7 percentage points. That is, it can lead to a certain short-term increase in inflation. After adaptation of production to the increased demand, the effect on inflation will gradually weaken,” Smailov noted.

At the same time, according to him, the growth in consumption due to the increase in the minimum wage will lead to positive macroeconomic effects.

An increase in the minimum wage will lead to an increase in cash income of 1.650 million employees with salaries of up to 60 thousand tenge. Taking into account the cascading effect from the increase in the minimum wage, the income of another 2 million employees will additionally increase. Thus, the overall effect of the increase in minimum wages will be felt by at least 3.5 million employees.

“According to forecasts, such an increase will lead to an acceleration of economic growth rates in real terms by an additional 1.5 percentage points. in year. That is, there will be an increase in the production of goods and services and, accordingly, an increase in taxes,” he explained.

As for the budgetary provision, as Smailov said, the corresponding funds for civil servants in the draft republican budget, which is now in the Majilis of the Parliament, are provided in the required amount.

The next question related to the budget deficit, namely, the journalists were interested in whether Kazakhstan would enter the foreign borrowing market to cover the deficit. To this, the First Deputy Prime Minister said that the state borrowing policy is aimed at covering the budget deficit mainly at the expense of the domestic market.

“This makes it possible to reduce external debt, and also provides domestic investors with the opportunity to invest in highly liquid and reliable financial instruments,” the Deputy Prime Minister emphasized.

In the current year, the deficit was financed in the amount of about 80%, mainly due to the issue of securities on the domestic market.

“The external capital market is viewed as an alternative source of financing the budget deficit and the decision to enter external markets depends on the volume of internal liquidity and the availability of favorable conditions in external capital markets. At the same time, even when entering external capital markets, instruments in national currency and soft currencies are considered, which allows avoiding currency risks,” the First Deputy Prime Minister informed.

Alikhan Smailov cited as an example the situation when in June of this year. on the Russian stock market, the Ministry of Finance issued bonds for 40 billion rubles (236 billion tenge). The issue of ruble bonds is due to the low cost of borrowing and virtually no foreign exchange risks due to the high correlation of the Russian ruble with the tenge.

News feed
27 October 2021, 17:15
How Nurly Zhol program is changing Kazakhstan: Modern highways and new directions
26 October 2021, 10:42
Youth unemployment rate decreased in Kazakhstan — Serik Shapkenov
26 October 2021, 10:32
Incidence of CVI decreased by 4.5 times, mortality rate by 4.8 times over past two months in Kazakhstan — Alexey Tsoy
26 October 2021, 09:55
According to results of 9 months of 2021, over 1 million Kazakhstanis covered by employment measures
26 October 2021, 09:43
Askar Mamin instructs to strengthen epidemiological control at state border
25 October 2021, 20:06
Yeraly Tugzhanov holds meeting on development of science
25 October 2021, 15:16
Askar Mamin discusses with Deputy Prime Minister of Hungary Mihály Varga prospects for expanding cooperation between two countries
25 October 2021, 14:21
Government session to be held Oct. 26 in Ukimet Uyi
23 October 2021, 17:58
Alikhan Smailov participates in opening ceremony of Alley of Financiers
23 October 2021, 12:31
Stabilization of food prices is of paramount importance — Askar Mamin
22 October 2021, 18:31
Askar Mamin discusses issues of environmentally sustainable economic development with EU ambassadors
22 October 2021, 18:17
Roman Sklyar pays working visit to Seoul
22 October 2021, 15:44
Ruslan Sakeyev appointed Vice Minister of Labor and Social Protection of the Population of the Republic of Kazakhstan
22 October 2021, 14:33
Government hosts meeting on implementation of instructions of the Head of State given at APK Council meeting
22 October 2021, 13:25
Quality Education "Educated Nation" — Aimagambetov speaks about main directions of national project
21 October 2021, 17:22
Transportation of goods across Kazakh-Chinese border discussed by Deputy Prime Ministers of the two countries
21 October 2021, 17:11
Ulttyq Ruhani Zhangyru. Aida Balayeva reports on main directions of national project
21 October 2021, 16:02
Askar Mamin inspects progress of reconstruction of largest highway in Western region
20 October 2021, 20:25
Prime Minister of Kazakhstan Askar Mamin holds telephone conversation with Prime Minister of the Russian Federation Mikhail Mishustin
20 October 2021, 16:33
Prime Minister Askar Mamin chairs meeting of Commission on Digitalization
20 October 2021, 10:46
Yerzhan Yerkinbayev appointed Vice Minister of Culture and Sports of the Republic of Kazakhstan
19 October 2021, 11:23
Alikhan Smailov chairs meeting of Interdepartmental Commission on foreign trade policy and participation in international economic organizations
19 October 2021, 10:46
Covid-19 incidence in Kazakhstan decreased by 17% over past two weeks — Ministry of Healthcare
19 October 2021, 10:30
In 2021, 106 billion tenge allocated for development of villages under Auyl - El Besigi project — Aset Irgaliyev
19 October 2021, 09:39
Askar Mamin instructs to ensure integrated and unified approach to development of rural areas
19 October 2021, 09:24
Over 8 million Kazakhstanis received first component of coronavirus vaccine
18 October 2021, 15:09
Government session to be held Oct. 19 in Ukimet Uyi
18 October 2021, 15:09
Increasing labor productivity, export production and income of rural residents — what tasks are posed by national agro-industrial complex
16 October 2021, 12:21
Askar Mamin instructs to increase efficiency of work of akimats on stabilizing prices
15 October 2021, 18:30
Healthy nation. What areas does national project of the Ministry of Healthcare include
15 October 2021, 11:34
Talgat Momyshev appointed Vice Minister of Ecology, Geology and Natural Resources
14 October 2021, 20:42
Yeraly Tugzhanov and UN Assistant Secretary General discussed priority areas of cooperation between Government of Kazakhstan and UNDP
14 October 2021, 18:06
Askar Mamin inspects implementation of large transport infrastructure projects
13 October 2021, 20:21
Revaccination, work of business facilities and herd immunity — Yeraly Tugzhanov chairs meeting of Interdepartmental Commission
12 October 2021, 15:26
Government discusses issues of cooperation between Kazakhstan and OECD
12 October 2021, 13:19
Government presents national projects for development of Kazakhstan
12 October 2021, 12:47
For 9 months of 2021, positive growth dynamics remained in all economic sectors — Aset Irgaliyev
12 October 2021, 10:27
Government approves national development projects
12 October 2021, 09:42
Pace of economic recovery in Kazakhstan accelerated to 3.4% over 9 months
11 October 2021, 17:45
Prime Minister Askar Mamin meets with leadership of Chevron
11 October 2021, 17:07
Government session to be held Oct. 12 in Ukimet Uyi
11 October 2021, 12:52
Government approves postponement of holidays in 2022
11 October 2021, 09:20
Askar Mamin's visit to the UAE: Pool of new joint projects to exceed $6 billion
09 October 2021, 12:37
Askar Mamin holds meeting on prices for socially significant food products, fuels and lubricants
09 October 2021, 07:59
Yeraly Tugzhanov takes part in opening of Palace of Arts in Uralsk
08 October 2021, 20:23
Yeraly Tugzhanov visits social facilities of West Kazakhstan region
08 October 2021, 17:43
Council on Improving Investment Climate considers development of alternative energy
08 October 2021, 08:25
Askar Mamin discusses implementation of joint projects in petrochemical industry with Head of SIBUR Dmitry Konov
06 October 2021, 15:02
Askar Mamin meets with Head of World Customs Organization Kunio Mikuriya
05 October 2021, 18:28
Yerlan Aukenov relieved as Vice Minister of Labor and Social Protection of Population
© 2019 - 2021 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.