In March 2011, the government of Kazakhstan announced a change in private-sector financial support.



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14 2011 254

Inception date: No inception date

Instrument unclear

On 14 March 2011, the Government of the Republic of Kazakhstan approved the State Programme "Productivity 2020" (Decree No. 254).

The purpose of the programme is to increase the competitiveness of the industrial enterprises in priority economy sectors. The programme is to be implemented in the period 2011--2020.
The state support under the State Programme "Productivity 2020" is to be allocated under eight instruments:

  1. Provision of long-term leasing financing;
  2. Elaboration and/or provision of expertise concerning comprehensive plans, related to the realisation of investment projects:
  3. Increase of enterprises' competence through training and/or retraining of personnel, including top managers;
  4. Improvement of the technological processes;
  5. Increase of the effectiveness of the organization of production;
  6. Reimbursement of expenses of entities that develop industrial-innovative activities and promote the domestic processed goods, works and services in the internal market;
  7. Partial reimbursement of expenses for the development of a strategy and a road map for territorial clusters.
  8. Partial reimbursement of expenses for the implementation of a strategy and a road map for territorial clusters.

The State Programme "Productivity 2020" identifies the following priority sectors for its support:
Agro-industrial complex
Manufacture of food products
Production of mineral waters and other soft drinks

Mining industry
Technical services in the field of mining
Technical services in the field of oil and natural gas
Technical support during oil and natural gas extraction
Technical support for other areas of the mining industry and underground mining

Light and woodworking industry
Manufacture of textiles
Production of clothes
Manufacture of leather and related products
Manufacture of wood and cork, except furniture, manufacture of articles of straw and plaiting materials
Manufacture of paper and paper products
Manufacture of furniture

Chemical and pharmaceutical industry
Manufacture of refined petroleum products
Manufacture of chemicals and chemical products
Manufacture of basic pharmaceutical products and preparations
Manufacture of rubber and plastic products

Production of construction materials and other non-metallic mineral products
Manufacture of other non-metallic mineral products

Metallurgy, metal processing, machine building (manufacturing)
Metallurgical industry
Manufacture of fabricated metal products, except machinery and equipment
Manufacture of computer, electronic and optical products
Manufacture of electrical equipment
Manufacture of machinery and equipment not elsewhere classified
Manufacture of motor vehicles, trailers and semi-trailers
Manufacture of other transport equipment
Repair and installation of machinery and equipment
Repair of fabricated metal products, machinery and equipment
Installation of industrial machinery and equipment

Other sectors of the industry
Production of other finished products
Production of electricity
Treatment and disposal of non-hazardous waste
Recycling of sorted materials

Transport and storage
Water transport
Air transport
Warehousing and supporting transport activities

Information and communication
Computer programming, consultancy and other related services
The financial funds, to be provided by the republican budget are as follows:

  • 2011 - 15.764 billion tenge (ca. 109 million USD),
  • 2012 - 10.133 billion tenge (ca. 70 million USD),
  • 2013 - 134.050 million tenge (ca. 0.9 million USD),
  • 2014 - 126.670 million tenge (ca. 0.87 million USD),
  • 2015 - 697.311 million tenge (ca. 4.8 million USD),
  • 2016 - 697.311 million tenge (ca. 4.8 million USD),
  • 2017 - 697.311 million tenge (ca. 4.8 million USD),
  • 2018 - 697.311 million tenge (ca. 4.8 million USD),
  • 2019 - 697.311 million tenge (ca. 4.8 million USD),
  • 2020 - 697.311 million tenge (ca. 4.8 million USD).

The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
Note: For the calculation of the USD-equivalent of the state support is used the USD/KZT exchange rate for 14 March 2011.