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03.09.2019

President of Kazakhstan Kassym-Jomart Tokayev’s State of the Nation Address

CONSTRUCTIVE PUBLIC DIALOGUE IS THE BASIS OF STABILITY AND PROSPERITY OF KAZAKHSTAN 

 

Dear compatriots!

Dear deputies, members of the Government!

 

Congratulations on the start of the new parliamentary season!

We are approaching an important stage in the recent history of our country.

Almost 30 years ago, we declared our Independence, thus fulfilling the centuries-old dream of our ancestors.

Over the years, under the leadership of the First President of Kazakhstan – Elbasy Nursultan Nazarbayev, our country has become a stable and authoritative state in the world.

Thanks to our strong unity, we have strengthened our Independence and created conditions for improving the people welfare.

This time was a period of creation and progress, peace and harmony.

Our way of development has been recognized all over the world as Kazakhstan’s model, or Nazarbayev’s model.

Now we have an opportunity to increase the achievements of Independence, to bring the country to a qualitatively new level of development.

We will be able to achieve these goals by ensuring the continuity of the Elbasy policy f and carrying out systemic reforms.

You know that was the basis of my election program.

Today, state bodies are carrying out the appropriate work for its implementation.

I will certainly keep my promises to the people.

Our work should proceed from the need for full implementation of the Five Institutional Reforms and the Nation Plan, developed by Elbasy. The work of the National Modernization Commission established by him should be resumed.

Next, I would like to express my views on the implementation of our common tasks, in particular, my election platform.

 

І. AN EFFICIENT MODERN STATE.

The political transformation I promised will be gradually and steadily carried out taking into account the interests of our state and.

World experience shows that explosive, haphazard political liberalization results destabilization of the domestic political situation and even to the loss of statehood.

Therefore, we will implement political reforms without “looking ahead”, but consistently, persistently and thoughtfully. Our fundamental principle: successful economic reforms are no longer possible without modernizing the country’s social and political life.

“Powerful President – Powerful Parliament – Accountable to Government.” This is not a fait accompli, but a goal towards which we must move at an accelerated pace «.

This formula of the political system is the state stability basis.

Our common task is to implement the concept of a “Hearing state” that quickly and effectively responds to all constructive citizens requests. Only through a constant dialogue between the authorities and society can a harmonious state be built in the modern geopolitics context.

Therefore, it is necessary to support and strengthen the civil society, to involve it in the discussion of the most urgent national problems in order to solve them.

It is for this purpose that The National Council Of Public Trust, which is representative in its team, has been established and will work on a rotational basis.

In the near future we all have to implement the following measures.

First. Continue the process of party shaping.

The NurOtan party, thanks to our Leader and its Nursultan Nazarbayev Chairman, consistently fulfills the difficult and responsible mission of the country’s leading political force.

We must also cooperate  with other political parties and movements that pursue constructive policies for the benefit of society.

The main problems that concern to our society should be discussed and resolved in Parliament and in the framework of civil dialogue, but not on the streets.

MPs can and should exercise their legal rights, including sending their requests to the Government on the topical issues and requiring it to take concrete measures.

At the same time, the relations between the legislative and executive authorities should be mutually respectful, businesslike, without artificial confrontation.

As the Head of the country, I see my task to promote the development of multiparty, political competition and pluralism of opinions in the country.

This is important for the stability of the political system in the long term.

The upcoming elections to the Majilis and Maslikhats should contribute to the further development of the multiparty system in the country.

Second. Effective feedback with the population.

Public dialogue, openness, prompt response to people’s needs are the main priorities in the activities of state bodies.

The Presidential Administration has created a Department that will monitor the quality of citizens ‘ appeals consideration by state bodies, take operational measures on them.

Often people are forced to turn to the President due to the “deafness” and closeness of officials in the center and in the places.

Repeated complaints about the injustice of decisions in some area mean systemic problems in a particular government agency or region. Now it should be treated that way, and the appropriate decisions should be made.

In order to improve the efficiency of civil servants we need to attract trained young staff.

At the same time, starting from 2020, we will begin a gradual reduction in the number of civil servants, and the released funds will be used for to material incentives for the most useful workers.

By 2024 the number of civil servants and employees of national companies should be reduced by 25 percent.

Third. Improvement of legislation on rallies.

According to the Constitution, our citizens have the right to express their free will.

If peaceful actions do not seek to violate the law and peace of the citizens, then we need to meet and in accordance with the law to give them permission to allocate special places for it. Moreover, not on the outskirts of cities.

But any calls for unconstitutional actions, hooligan actions will be suppressed within the law. 

Fourh Social cohesion strengthening.

Harmony between different social and ethnic groups is the result of the whole society efforts.

In this regard, it is necessary to analyze the political processes and take concrete measures to strengthen our unity.

Given  the role of the Kazakh people as a state-forming nation, we need to continue strengthening interethnic harmony and interreligious understanding.

Our position: “The nation Unity – in Its Diversity”!

We will continue to create conditions for the development of languages and culture of all ethnic groups in our country.

I believe that the role of the Kazakh language as the state language will be strengthened and the time will come when it will become the language of interethnic communication.

However, to reach this level, we need our common work but not loud statements.

In addition, it must be remembered that language is a tool of big politics.

I believe that for an active civil society shaping it is necessary to increase the authority of non-governmental organizations.

Therefore, we should soon develop and adopt a Concept for the civil society development until 2025.

Preparatory work to celebrate next year’s significant anniversaries and major events has already begun.

In the coming year, we will celebrate al-Farabi’s 1150th birth year and Abay Kunanbayuly 175th birth year.

Within the framework of the anniversary events, it is necessary to popularize the works of these brilliant personalities without allowing waste.

In addition, the necessary measures should be taken to celebrate the 30th anniversary of Independence.

I am convinced that such significant events will contribute to the education of the younger generation in the spirit of true patriotism.

 

II. ENSURING THE CITIZENS RIGHTS AND SECURITY.

Profound reforms of the judicial and law enforcement systems are a key factor in strengthening the protection of citizens ‘ rights and security.

A number of serious measures are needed to improve the quality of judicial decisions.

A  judge’s right to rule on the basis of law and internal convictions remains inviolable. However, it is necessary to conduct a thorough analysis of judicial decisions, to ensure uniformity of the judicial practice.

In public law disputes, citizens often find themselves under unequal conditions when appealing against decisions and actions of authorities. Their opportunities are incommensurable with the state apparatus resources.

Therefore, it is necessary to introduce administrative justice as a special mechanism for dispute resolution, leveling this difference.

Henceforth, when resolving disputes, the court will have the right to initiate the collection of additional evidence, the responsibility for the collection will fall on the state body, and not on the citizen or business.

All legislation contradictions and ambiguities should be interpreted in favor of citizens.

I would also like to highlight the following important issue.

We have moved away from excessive repressive measures and harsh punitive practices of justice. However, there are still many serious crimes in the country.

We got carried away with the legislation humanization, while losing sight of the citizens’ fundamental rights.

Penalties for sexual violence, paedophilia, drug trafficking, human trafficking, domestic violence against women and other serious crimes against the individual, especially against children, must be increased as a matter of urgency. This is my instruction to the Parliament and the Government.

Recent tragic events have revealed the problem of poaching as the most dangerous form of organized crime.

Poachers are equipped, armed, feel their impunity. Only this year they killed two inspectors for the protection of wildlife.

Recently criminal activity of a gang of poachers on lake Markakol in the East Kazakhstan oblast was stopped.

These are only isolated cases, but poaching has taken deep roots, including with the connivance of law enforcement agencies. Poachers ruthlessly destroy nature – our national wealth.

I instruct the Government to take immediate measures to tighten the relevant legislation within two months.

The issue of systemic fight against corruption remains on the agenda.

It is necessary to restore the anti-corruption expertise of normative legal acts draft of Central and local authorities involving experts and the public.

It is necessary to legislate and regulate responsibility of the first head of the Department where a corruption crime took place.

It is also necessary to provide for strict liability of anti-corruption bodies employees for illegal methods of work and provocative actions. They should have no place in investigative practice.

The principle of presumption of innocence must be fully respected.

Full-fledged reform of the law enforcement system remains one of the most urgent tasks.

The image of the police as a power tool of the state will gradually fade into the past, it will become a body to provide services to the citizens to ensure their safety.

At the first stage, it is necessary to reorganize the work of the Administrative Police Committee by the end of 2020. This should be done efficiently and without campaigning.

The effectiveness of the police depends on the prestige of the police service itself.

173 billion tenges will be allocated for the reform of the Ministry of Internal Affairs for the next three years.

These funds will be used to raise wages, housing rent, establishing of modern police front offices on the principle of the PSCs.

Special attention will be paid to the protection of citizens from natural phenomena and man-made accidents which, unfortunately, have become a frequent phenomenon not only in our country but also around the world.

Professional staff should work in this area.

I instruct the Government to raise the civil protection officers salaries  within the framework of the funds allocated for the Ministry of Internal Affairs reform r, and to allocate about 40 billion tenges for these purposes.

We are faced with the task of forming a combat-ready army on the basis of a new concept.

The events in Arys showed that the Armed Forces have accumulated serious problems.

Finally, it is necessary, to regulate all military expenditures, to strengthen financial and general discipline in the army. At the same time, it is necessary to increase the prestige of military service, material equipment of the armed forces.

Recruited with professionally trained, loyal to the Motherland officers and soldiers, our army must be ready to reflect the threats to the security of the country in the new geopolitical realities.

 

III. DEVELOPED AND INCLUSIVE ECONOMY.

Kazakhstan’s economy is steadily developing, despite the difficulties of a global nature.

Since the beginning of the year, economic growth has exceeded the global average.

If we make the necessary structural changes, we will be able to ensure annual sustainable growth of gross domestic product by 5% and above by 2025.

The  Presidential Administration and the Government should study in detail all the proposals of domestic and foreign experts to give a new impetus to the economy.

We need to implement a number of structural tasks within the framework of the proposed by Elbasy long-term development strategy until 2050 And the Nation Plan.

First. Abandoning the resource mentality and the economy diversifying.

“Knowledge economy” , increase of labor productivity, development of innovations, introduction of artificial intelligence became the main factors of the global progress.

During the implementation of the third five-year plan of industrialization, we need to take into account all the made mistakes.

The government should take into account all my comments and fully implement the relevant instructions concerning these issues.

We should increase labor productivity by at least 1.7 times.

The strategic objective is to strengthen the country’s authority in Central Asia as a regional leader.

It is marked the Elbasy political course.

Second. Improving the impact of the quasi-public sector.

Our state companies turned into cumbersome conglomerates, which international competitiveness is questionable.

In order to reduce the unjustified state presence in the economy, I have decided to introduce a moratorium on the quasi-public companies establishing  .

We need to understand what the real contribution of the National Welfare Fund to the growth of the people welfare has been  for the past 14 years since the Fund establishment.

The government together with the Account Committee should analyze the effectiveness of the state holdings and national companies within three months.

Quasi-public companies often compete in the same field. In the sphere of housing policy, for example, 7 state operators work simultaneously, and this is only at the Central level!

The number of state-owned companies can and should be reduced.

At the same time, it is necessary to deal the activities of state-owned companies operating in strategic sectors carefully.

State control over them must be maintained. Otherwise, instead of state monopolists, we will get private monopolists with all the ensuing consequences.

The government should deal with pricing and tariffs systematically and substantively. This concerns the goods and services of natural monopolists. It is not a secret that prices in our country are high – from food and clothing to the cost of various services.

For example, it raises questions why air tickets of the main air carrier on the most popular routes are much more expensive, sometimes up to 30%, than in Europe?! What justifies the relatively high cost of our airports services?

Why the cost of jet fuel for foreign carriers in Kazakhstan airports is higher than for domestic ones?

In the  result, the aviation industry of Kazakhstan loses its international competitiveness, the transit potential of the country decreases.

With the connivance of the relevant Ministry, departments an artificial shortage of tickets in rail passenger transport was created.

It is urgent to restore order in these areas.

Our goal is to ensure the full development of market institutions and mechanisms with the state stabilizing role.

At the same time, we must not forget about the “economy of simple things”. This is a priority area of our work.

Third. Effective small and medium business is a solid foundation for the cities and villages development.

Small, especially microbusiness, plays an important role in the socio-economic and political life of the country.

First of all, it provides permanent employment of villagers, reduces unemployment. Shaping the tax base, it also replenishes the local budget.

In addition, the development of mass entrepreneurship provides an opportunity to get rid of paternalistic attitudes and dependency rooted in the consciousness.

Therefore, the state will continue to support business.

For these purposes, the National Fund allocated about 100 billion tenges.

However, according to experts, only farms affiliated with local authorities benefit from financial support.

In fact, new projects had to found new companies and create new jobs.

This is directly related to the “economy of simple things”.

But the local akims have not properly performed organizational work.

For this reason, conditions have not been created to increase the tax base, pension contributions, strengthen the local budget.

In this regard, I instruct the Account Committee and the Ministry of Finance to exercise strict control over the expenditure of funds.

There are enough successful examples of entrepreneurship development in our country. We should support small business with the whole society.

I instruct the Government to develop a legislative framework for the exemption of micro and small businesses from income tax for a period of three years.

The relevant amendments to the legislation should come into force in 2020.

My decision on a three – year ban on inspections of micro and small businesses will come into force since January 2020.

We believe in the integrity and law-abiding of our business, which should be responsible to consumers and citizens. During the moratorium period it is necessary to activate the tools of self-regulation, public control.

In the case of violation the prescribed rules and regulations by business entities, especially in the sanitary and epidemiological sphere, the companies will be closed, their owners will be brought to justice  .

Thus, we reduce the burden on the business.

At the same time, it still faces numerous problems related to the actions of law enforcement and regulatory agencies.

Cases of raiding in relation to SMBs have become more often.

My position on this issue is known: any attempt to hinder the development of business, especially small and medium-sized, should be considered as a crime against the state.

In this regard, additional legislative measures are needed. The Parliament and the Government should propose a solution to this problem.

At the same time, it is necessary to strengthen the opposition to the shadow economy, toughen the fight against the withdrawal of capital, tax evasion.

Further. The system of state financial support for SMBs should be “reset”, giving priority to new projects.

I instruct the Government to allocate an additional 250 billion tenges for these purposes for the next three years within the framework of the new “Business Road map”.

We need actively introduce new forms of business support with a focus on social aspects – the establishing of family businesses, primarily for large and low-income families.

Special attention should be paid to the development of tourism, especially eco-and ethno-tourism, as an important sector of the economy.

The 750th anniversary of The Golden Horde should be noted in terms of attracting the attention of tourists to our history, culture and nature.

For the development of tourism, it is important to ensure the necessary infrastructure construction, primarily roads, as well as to train qualified specialists.

Forth. Support of national business in the international markets.

We will have to strongly increase the efficiency of state support for companies working for export.

I’m talking primarily about medium-sized businesses.

Meanwhile, we do not have effective measures of state support for this entrepreneurs segment. First of all, in the field of sales. We need to support our SMB.

I instruct the Government to develop a set of measures to support high-performance medium-sized businesses, including tax, financial and administrative incentives within the framework of the State program of industrial and innovative development.

It is necessary to intensify efforts seriously to attract foreign direct investment, without which the reserves for further economic growth will be limited. This is one of the Executive branch priorities.

Within the framework of the Strategic Development Plan of Kazakhstan until 2025 appropriate targets wer set for each industry and region.

Their achievement is the direct responsibility of state bodies heads, especially regional akims.

Kazakhstan has set a course for the development of the digital economy.

There is a lot of work to be done here. Our task is to strengthen leadership in the region in terms of infocommunication infrastructure development.

The government will have to adapt the legislation to new technological phenomena: 5G, Smart cities, big data, blockchain, digital assets, new digital financial tools.

Kazakhstan should become a brand as an open jurisdiction for technology partnership, data centers construction and placement, data transit development, participation in the global market of digital services.

The government should continue to support the activities of the International Financial Centre, which has, in fact, acquired the Constitutional Status. “Astana” International Financial Center could become a platform for the development of new digital technologies together with Nazarbayev University.

Fifth. Developed agro-industrial complex.

Agriculture is our main resource, but it is not fully used.

We have a significant potential for the production of organic and environmentally friendly products that are in demand not only in the country but also abroad.

We must gradually increase the amount of irrigated land to 3 million hectares by 2030.

This will ensure 4.5 times growth of agricultural products.

The Ministries of Trade and Integration, Agriculture should strongly support farmers with the selling their products in foreign markets.

The Government already has a corresponding instruction. This is a priority.

Further. It is necessary to move away from the raw material orientation of agricultural products exports, which reached 70%, while processing plants are loaded with only 40%.

A relevant objective  is to attract foreign investors to agriculture. Negotiations are being underway, the Government needs to achieve concrete results.

I would like to dwell on the land issue that concerns public.

As the Head of state, I once again declare that our land will not be sold to foreigners. We won’t let that happen.

We  need to stop all speculation in this issue. At the same time, our task is to ensure the effective use of land.

The issue of inefficient use of land resources is becoming increasingly important.

The situation is exacerbated by the low level of direct land taxes.

Many of those who received the right to land lease free of charge from the state, keep the land for future use, not working on it. The country has developed a layer of so-called “latifundists”. They behave like “a  dog in the hay”.

It is time to start the withdrawal of unused agricultural land.

The land is our common wealth and should belong to those who work on it.

The government and Parliament should propose appropriate mechanisms.

This is all the more important because without solving this issue, it is impossible to develop the quality of the domestic agriculture.

Today, the increase in meat production rests not so much on the problem of breeding stock, but on the problem of the land lack for the farmers to grow forage crops. Feed availability is less than 60%.

Improving agricultural productivity is impossible without the organization of appropriate conditions for quality of life in rural areas.

We will continue the implementation of the special Elbasy’s «Ауыл – Ел Бесігі» project.

We have to solve the extremely difficult problem of maintaining small settlements. Regional standards have been developed, they should now be implemented in more than three thousand basis and satellite rural settlements.

I instruct the Government to allocate 90 billion tenges for «Ауыл – Ел Бесігі»  implementation in the next three years in addition to 30 billion tenges allocated this year.

These funds will be used to solve infrastructure issues – transport, water supply, gasification, as well as repair and construction of schools, hospitals, sports grounds.

Spending of these funds should be strictly controlled by all government agencies.

Sixth. Fair taxation and sound financial regulation.

Despite the GDP growth and incomes of the population, the property stratification within Kazakhstan’s society remains and even increases.

This is a worrying factor that requires special attention.

I believe that it is necessary to modernize the tax system with a focus on a more equitable distribution of national income.

The government should also pay attention to the growing volume of social contributions.

On the one hand, these fees ensure the stability of the social and pension systems.

However, there are risks that employers will lose incentives to create jobs and raise wages. Business will go into the shadows.

Therefore, I instruct the Government to postpone the introduction of additional pension contributions in the amount of 5% until 2023. Then we will get back to this issue.

During this time, the Government, business representatives and experts should calculate the options and come to an agreed solution taking into account the interests of both future pensioners and employers.

The government should ban all payments not covered by the Tax Code. These are, in fact, additional taxes.

A separate problem is improving the quality of the current tax system.

It should encourage companies to invest in human capital, increase productivity, technical re-equipment, export.

Non-cash payments should be introduced everywhere, eliminating the deterrent factor – the high banks commission. To do this, it is necessary to actively develop non-Bank payment systems with appropriate regulations. With the obvious simplicity and attractiveness of this segment, it should not become a channel for money laundering and capital withdrawal from the country. The National Bank should establish effective control in this area.

The following issue. In order to support the export of non-raw products, it is necessary to consider the application of simpler and faster VAT refund procedures.

One of the most problematic issues of our economy is the insufficient volume of its crediting. Over the past five years, the total volume of crediting legal entities, as well as small and medium-sized businesses has decreased by more than 13%.

Second level banks refer to a shortage of good borrowers and put excessive risks in the cost of credit funds.

The problem of quality borrowers, of course, is. But it is impossible to be engaged in the responsibility shifting, to go only on an easy way.

I expect coordinated and effective work of the Government and the National Bank on this issue.

Another problem is the debt burden, especially for socially vulnerable population groups, it has resulted in the need for emergency measures. You know that.

This problem has become socially and politically acute.

Therefore, I instruct the Government, the National Bank to prepare within two months the implementation the mechanisms  that will  guarantee not allowing this situation repetition.

Insufficient efficiency of monetary policy becomes one of the country economic development brakes.

It is necessary to ensure lending to business by second level banks on the acceptable terms and for a long time. By the end of the year, the National Bank needs to complete an independent assessment of the second level banks assets quality.

Seventh. The National Fund effective use issue.

It is necessary to reduce the National Fund use to solve the current problems.

This is future generations money.

The  National Fund transfers of should be allocated only for the implementation of programs and projects with the goal of the economy competitiveness improving.

The amount of guaranteed transfers from 2022 should be gradually reduced to 2 trillion tenges.

It is necessary to significantly improve the investment policy efficiency when using the Fund’s money`.

I instruct the Government, together with the National Bank, to prepare concrete proposals for improving the mechanism for managing the National Fund money by the end of the year.

Eighth. Wages Increase.

Revenues of large mining companies are growing, but we see that the salaries of our citizens are not significantly increased.

With regard to the population social position, the Government must be persistent in addressing this issue.

I instruct the Government to consider ways to encourage employers to increase the wage fund.

 

ІV. A NEW STAGE OF SOCIAL MODERNIZATION.

The country budget should be focused on two main goals – the economy development and the social problems solution.

In the social sphere, special attention should be paid to the following orientations.

First. Improve education.

Our country has not developed an effective method of accounting for the balance of labor resources yet.

In fact, the domestic system of training specialists divorced from the real labor market.

About 21,000 school leavers are unable to enroll in vocational and higher education each year.

This category of young people joins the ranks of the unemployed and marginalized. Many of them fall under the influence of criminal and extremist groups.

We should move to a career guidance policy based on identifying students ‘ abilities.

This policy should shape the basis of the secondary education national standard.

The demand in technical specialists in our economy is very high, but the opportunities of domestic education are insufficient. Enterprises are forced to invite relevant specialists from abroad. We need to improve the situation immediately.

The gap in the quality of secondary education between urban and rural schools is growing

The main problem is the shortage of qualified teachers in rural areas.

Therefore, it is necessary to expand “with a diploma – to the village”  program scope and continue to work at a new level. I instruct the Government to increase the financing of this program up to 20 billion tenges from next year.

It is necessary to select talented rural youth and prepare them for training in domestic and foreign universities.

I instruct the Government to develop a Roadmap to support gifted children from low-income and large families.

The government and akims should also provide such children with the opportunity to attend clubs, centers and summer camps.

I want to focus on the higher education quality.

Only half of the country’s higher education institutions provide 60 per cent of their graduates with employment.

It is therefore necessary to consider reducing the number of such institutions.

It is no secret that there are universities that instead of quality training are engaged in the diplomas sale.

Having eliminated them in the first place, we must focus all our efforts on improving the quality of education.

Another problem related to education is the uneven funding and inefficiency of the current management system in the regions.

It is necessary to transfer the functions of educational institutions management and budget administration from the rayon to the oblast level.

It is necessary to introduce a special funding procedure for each education level.

Another relevant issue is the textbooks quality problem.

Providing the schoolchildren with quality textbooks is the direct responsibility of the relevant Ministry.

These measures will have no effect if we do not improve the teachers social situation.

Therefore, at the August conference, I instructed to increase teachers’ salaries two times for the next four years. This means that from next year the salary of teachers will be 25 % higher  .

The situation in science requires special attention. Without it, we cannot ensure the nation progress. Another thing is how qualitative and effective our science is?

The government should consider this issue from the perspective of increasing the level of scientific research and its application in practice.

Second. Supporting the family and childhood institution, creating an inclusive society.

Protecting the rights of the child and countering domestic violence should be our priority.

The problem of high suicide among teenagers should be addressed purposefully.

We have to develop a holistic program to protect the children affected by violence, as well as their families.

Special attention should be paid to families with children with disabilities. Only according to official statistics more than 80 thousand children are recorded as disabled.

The government should develop measures to improve medical and social support for children diagnosed with cerebral palsy.

It is necessary to expand the network of small and medium rehabilitation centers for children in “ walking distance”.

We must create equal opportunities for people with special needs.

I spoke about this as part of my campaign platform. Now I instruct the Government to allocate at least 58 billion tenges for these purposes within three years.

The issues of improving the nation health require special attention. It is important to develop mass sports among all age groups.

It is necessary to ensure maximum accessibility of sports infrastructure for children.

The development of mass physical culture should become a pyramid, on top of which there will be new Champions, and we will get a healthy, active youth and, ultimately, a strong nation at its base.

It is necessary to provide legislative support for this course, as well as the adoption of a Comprehensive Plan for the Mass Sports Development.

2020 is declared the “A Volunteer Year”. A  relevant objective is to expand the participation of citizens, especially young people, students and pupils in volunteer activities, to instill their active life position skills. This is an important part of our work to strengthen civil society.

Third. Ensuring medical services quality and accessibility.

Regional imbalances in health indicators, especially in maternal and infant mortality, are evident here.

Yes, this figure is declining, but it is still high and far above the level of developed countries.

The government will have to make a list of priorities for each region on specific nosologies in medicine and introduce budget funding on its basis.

Since January 1, 2020, Kazakhstan has launched a system of compulsory social health insurance.

I want to inform everyone that the state retains a guaranteed amount of free medical care. More than 2.8 trillion tenges will be allocated for its financing during the next three years.

In turn, the implementation of CSHI is called to improve the quality and availability of medical services.

An additional 2.3 trillion tenges will be allocated under the three-year budge for the development of the health care system.

The government should be very responsible for the social health insurance implementation in order to avoid its next discredit.

We have no right to make mistakes.

Forth. Support for cultural workers.

We do not pay due attention to citizens working in the field of culture.

This concerns primarily the employees of libraries, museums, theaters and artists.

Their wages have hardly increased in recent years.

In the result, cultural workers, especially young professionals, do not have the opportunity to participate in preferential housing programs.

This situation results in the  profession prestige decrease, the shortage of relevant personnel has become obvious.

The government should increase the salaries of cultural workers since next year.

In addition, social benefits, which operate in the fields of education and health, should be provided to cultural workers.

Fifth. Further development of the social support system.

The state takes all measures to support citizens in need.

But a number of decisions were not quite verified.

In  the result, we have received a serious increase in paternalistic sentiments. For 5 years the number of recipients of targeted social assistance in Kazakhstan has grown from 77 thousand people to more than 1.4 million.

The amount of funds allocated from the budget for social support has increased by 17 times or more since 2017.

In other words, more people are choosing not to work or, worse, withhold their income for social assistance. The facts of receiving social assistance by wealthy families were covered in the media.

Once again. Our state is constitutionally social and therefore must fulfill its obligations to citizens.

The government in its work must proceed from this principle, and reserves must be found by nullifying all inefficient costs and increasing revenues.

Such reserves are certainly available. The Ministry of Finance is working to increase the revenues. But more effort is needed. For example, with respect to customs.

Elbasy paid special attention to the streamlining of the public procurement process at a meeting of the political Council of the “Nur Otan” party. The Ministry of Finance has begun to optimize procurement, but legislative measures are needed.

Public procurement is fraught with a huge reserve (according to some estimates up to 400 billion tenges per year), which could go to the solution of acute social issues.

In 2018, the volume of public procurement amounted to 4.4 trillion tenges, of which 3.3 trillion. tenges or 75% is carried out in a non-competitive way from a single source.

It’s time to close this “feeder” for officials and all sorts of “stuck”.

Returning to targeted social assistance, the Government should adjust the mechanism of its allocation so that it becomes transparent, fair, motivates to work, and not to an idle lifestyle. Assistance should mainly be received by those who work.

At the same time, it is necessary to take care of children from low-income families. For them it is necessary to introduce a guaranteed social package – regular assistance to preschool age children, free hot meals for all students, providing them with educational supplies and uniforms, payment for medical, including dental care, reimbursement of travel costs in public transport.

All these measures should come into effect since the1st of January, 2020.

The government together with “Atameken” NCE will urgently, within a month, develop a special program for the involvement of mothers with many children in micro and small businesses, including that at home.

Sixth. I would like to draw your attention to the development of the national pension system, which has accumulated serious problems.

At the moment, the problem of insufficient pension savings is not so noticeable. However, in 10 years the situation may change. The number of working citizens making pension savings will decrease significantly, while the number of pensioners will increase.

At the same time, the level of savings and investment income received from pension assets remains low.

Therefore, the Government together with the National Bank should do serious work to improve the efficiency of the pension system.

Now a working person can use pension savings only after the retirement. But the desire of people to use these funds before retirement is understood.

I instruct the Government until the end of the year to work out the issue of targeted use some of their pension savings by working citizens, for example, to buy housing or get education.

In order to optimize costs and improve the quality of investment asset management, I instruct the Government to study the consolidation of the extra-budgetary social security system by creating a single social Fund and introducing a single social payment.

 

V. STRONG REGIONS-STRONG COUNTRY.

In this orientation, we need to focus on the following tasks.

FirstImproving the efficiency of local authorities.

People should always have access to local authorities. This is the axiom, but not reality.

I consider it is possible to introduce a system of evaluating   the local government effectiveness by the population as a pilot project.

For example, if in the result of a poll or online voting more than 30% of residents believe that the akim of a city or village is ineffective – this is the basis for the calling a special Commission by the Presidential Administration to study the problem with the introduction of the appropriate recommendations.

Second. Reform of the inter-budgetary relations system.

It is obvious that the current system of inter-budgetary relations does not stimulate akimats of all levels to create their own development basis – small and medium-sized businesses. Regions are poorly motivated to find additional sources of income.

Since next year additional tax revenues from SMEs are transferred to the regions.

But that’s not enough. There is a need to review the organization of the budget process at all levels. A big role in this work should play a real involvement of the population in the local budgets formation.

Rayon, urban and rural levels of government should become more economically independent in solving problems of local importance. Their rights, duties and responsibilities should be clearly regulated by legislation.

Third. Managed urbanization and a common housing policy.

The laws adopted earlier “On the Capital Status ” and “On the City of Almaty Special Status ” played a positive role, but today they need to be improved.

It is necessary to expand the competence of the three largest cities akimats, including in the area of urban policy, transport infrastructure, architectural appearance shaping.

A large number of the population of national importance cities is no longer a matter of pride, but a reason for concern in terms of the residents full provision of social and economic needs.

We observe overpopulation of the largest cities and at the same time lack of human and labor resources in such cities as, for example, Pavlodar and Petropavlovsk, where the appropriate conditions for the reception of new residents are created.

The government should take effective measures to manage migration processes.

In my election program I noted the need to develop a unified housing policy.

The main principle is to increase the availability of housing, especially for socially vulnerable segments of the population.

The government needs to develop a single model of housing development in the country, to move away from the practice of adopting disparate programs.

For example, in “7-20-25” framework  which was originally planned as a social, average family income of the borrower should be around 320 thousand tenges per month. People with low incomes could not afford to participate in it  .

Therefore, this year on the initiative of Elbasy a new program “Bakytty Otbasy” has been launched with a preferential rate of 2% and a down payment of 10%. These are very favorable conditions.

By the end of the year at least 6 thousand families will purchase housing under this program. First of all, large families and families raising children with disabilities. Since 2020, 10 thousand such families will be provided with housing annually.

The Government should define clear criteria for taking part in the program and ensure its strict administration. Support should be provided exclusevely to those who really need it.  

My instruction to the Government is to solve the problem of housing for low income families with many children standing in line within three years. We have about 30 thousand of them.

It is necessary to give the opportunity to live on the social rent terms to the citizens who do not have the income to purchase housing in the property.

The  state will allocate more than 240 billion tenges for these purposes by 2022.

It is necessary to develop new measures to involve private business in this work, to use the mechanisms of public-private partnership.

People are dissatisfied with the opaque process of formation and promotion of priority in the provision of social apartments by akimats.

By the end of the year, the government should develop a single national system of waiting lists consideration for rental housing, as well as for receiving preferential housing loans under “Bakytty Otbasy” program.

Despite the decline in wear and tear of utilities from 65% to 57%, this figure remains high.

Кроме того, из 78 тысяч многоквартирных домов более 18 тысяч требуют ремонта.

It is necessary to allocate at least 30 billion tenges  to regions for two years in the form of budget credits for modernization and repair of the housing stock.

I instruct the Government to foresee this mechanism and strictly control the effectiveness of these funds development.

Regional development budgets will exceed 800 billion tenges by 2022.

I instruct akims together with local maslikhats to ensure the direction of half of these funds to co-finance the modernization of housing and communal services and the solution of urgent social problems of the regions residents.

Forth. Infrastructure development.

It is obvious that residents of different country regions have different levels of access to clean drinking water, natural gas, transport infrastructure.

We need to intensify efforts to level this inequality.

By the Elbasy’s order the first stage of “Saryarka» network gas pipeline construction ends.

Next year, the work on the construction of distribution networks in Nursultan city and later in Karaganda, and in Akmola and North Kazakhstan regions in the future will be started.

For this purpose the government is allocating 56 billion tenges. In the result, more than 2.7 million people will have access to natural gas.

During the next three years, about 250 billion tenges will be allocated to provide our citizens with clean drinking water and sanitation services.

A  full and qualitative implementation of “Nurly Zhol” program should be in the Executive power field of view.

This is a strategic project, thanks to which an effective modernization will affect the entire transport infrastructure.

The state will invest more than 1.2 trillion. tenges of investments  for these purposes until 2022.

The government has previously allocated huge funds, but they are overwhelmingly gone into the sand, or rather, in the officials pockets, there is lack of but clean water, roads and other infrastructure.

This time, the Government and Parliament, together with the Account Committee, must ensure the absolute efficiency of the budget funds use.

The government needs to intensify its efforts to improve the environment, expand the use of renewable energy sources, and cultivate respect for nature. In this respect, the commendable campaign Бірге – таза Қазақстан! (“Birge – pelvis Kazakhstan!”) must to be continued.

The Parliament will have to discuss and adopt a new version of the Environmental code.

In general, the Government should improve its efficiency in the coming period. Kazakhstan citizens are waiting for concrete results.

 

Dear compatriots!

 

We have entered a new stage of the country reforming. We need to perform the tasks efficiently.

Every citizen of our country should feel positive changes.        

I demand operational work and achievement of specific indicators from state bodies.

It is unacceptable to carry out reforms for the sake of reforms.

Each Minister and akim should have a list of key performance indicators.

They will be used to determine the specific goals achievement level.

Members of the Government, heads of state bodies and regions, state companies and institutions are personally responsible for the reforms effective implementation.

Having this goal, I recently signed a corresponding Decree. Within the framework of this Decree, the situation in the country, including  the population situation in the regions will be specifically assessed on the surveys basis.

The government structures responsible for social and economic policy should carry out specific preliminary work that takes into account the society needs. To do this, it is necessary to strengthen significantly the system of control, analysis and forecasting.

П Therefore, based on the deputies requests, I instruct to establish an Institute of legislation analysis and examination at the Parliament.

This structure should help to improve the quality of our laws.

 

Dear people of Kazakhstan!

 

e are well aware of all the problems that concern the people.

An action plan is being prepared to improve the situation.

We have a special responsibility.

I have high hopes for every citizen who is rooting for the fate of the country.

Kazakhstan is our common home!

I call on each of us to make a personal contribution to the prosperity of our country!

Constructive public dialogue is the basis of harmony and stability.

As you know, in the sixth word of edification, the great Abai wrote: “Unity must be in the minds”.

Our invariable principle is the Elbasy’s winged words “the Unity of the people is our most valuable asset”.

Harmony and unity, wisdom and mutual understanding contribute to our progress.

Our goal is clear, our path is open.

I am sure that together we will achieve new achievements!

I wish you all prosperity and success!