Nazarbayev announces Kazakhstan to lower mortgage costs, reduce taxes on low-wage workers and provide more microloans, among other initiatives
Factsheet on the Five Social Initiatives of President Nursultan Nazarbayev
On 5 March 2018, President of Kazakhstan, Nursultan Nazarbayev, announced new social initiatives aimed at improving the lives of the citizens of Kazakhstan.
The First initiative: Make housing more affordable for families
- The President proposed launching a new “7 – 20 – 25” programme. Under this scheme, the rate of return will not exceed 7% per year (currently 14%-16%), initial payment will stand at 20% (currently between 30% and 50%)and the length of time to pay off credit will be 25 years (currently 10-15 years).
- According to the President, the implementation of the programme will give a powerful impetus to the construction of housing and, as a result, access to housing for many Kazakhstanis will increase.
The Second initiative: Reduce the tax burden to increase the wages of low-paid workers
- The President proposed to reduce the tax burden of low-paid workers ten-fold to 1% from January 1, 2019.
- Because of this initiative, wages will increase for2 million workers, without increasing the burden on employers.
- The President also suggested that in the future the government should explore the possibility of introducing a progressive tax system.
The Third initiative: Increase the accessibility and quality of higher education and improve the living conditions of students
- The President stated that extra 20,000 grants should be offered in the 2018-2019 academic year. Approximately 11,000 of these grants should be offered to those studying engineering at universities.
- The President stated that by 2022 new student accommodation should be built that will provide 75,000 new places to stay for students. This should be done through public-private partnerships.
The Fourth initiative: Expansion of loans for businesspeople
- The President instructed to allocate in 2018 an additional 20 billion tenge ($62.4 million) of microcredit, bringing the total amount to 62 billion tenge ($193.4 million).
- According to the Head of State, this microloan program will impact up to 14,000 businesspeople, which is twice as many as last year.
- President Nazarbayev added that this initiative will help thousands of people to start their own business. The initiative is especially important for those who want to set up their business in rural areas and villages.
The Fifth initiative: New gas pipeline to Astana
- President Nazarbayev announced the decision to build a natural gas pipeline from the Kyzylorda region to Astana.
- The President said that this will not only provide gas to 2.7 million people but will also help small and medium-sized businesses.
- He added that this will also positively impact the ecology, as in Astana alone, harmful emissions will decrease by six-fold.
- The President instructed the government to explore ways to finance this project, including by attracting international investment.