In an interview with Turkistan newspaper published today, the head of state said he takes full responsibility for the reforms he has initiated. According to Tokayev, Kazakhstan must move forward through reforms rather than remain stagnant.
"Administrative measures have been taken to temporarily halt tariff increases during the winter period in order to avoid harm to citizens. At the same time, the government has been tasked with the rational use of budget funds. We cannot flood the economy with money and provoke inflation. Strict budgetary discipline is necessary. Financial resources should only be directed to projects that are necessary for the state. In November last year, the government, the National Bank, and the Agency for Regulation and Development of the Financial Market adopted a three-year program. It aims to reduce inflation, which will improve the well-being of citizens," Kassym-Jomart Tokayev said in the interview with the newspaper.
The president noted that international experts are right to describe Kazakhstan as being in a “middle-income trap.” According to him, this is not an abstract concept from economics textbooks, but a reality that Kazakhstanis face almost daily.
“There is income, and sometimes quite substantial, but it is eroded by inflation and obligations – mortgages, children's education, helping parents. Any setback, whether it be illness or job loss, can undermine the stability of life,” Kassym-Jomart Tokayev noted in the interview.
The head of state emphasized that fraudsters took advantage of the opportunity to use pension savings to purchase apartments and for medical treatment.
“Law enforcement agencies are now dealing with them. We had to shut down this type of medical service, but other tricks came into play, including paying for plastic surgery,” the head of state noted.
Overall, the president is confident that the structure of Kazakhstan's economy is changing, but at a slow pace. As a result, according to estimates by international financial institutions and rating agencies, the country is prosperous, even rich, which is true, but there are still imbalances within the economy that need to be corrected urgently.
“We see this situation and are not going to hide it. Many countries face this problem. We will definitely cope with this ‘growing pain’. We have an action plan,” the President of Kazakhstan said in an interview with Turkistan.