II. Income distribution .

2.1. The macroeconomic situation in Kazakhstan at the moment.

The distribution process is carried out, as you know, in two forms: natural-material and cost. When the distribution of value involved different economic categories: finance, tax, budget, etc. The specifics of Finance is that the distribution process carried out with their help, it is extremely versatile, covering both primary distribution and redistribution of the many stages. Consequently, finance express a more general financial relationship than the budget.

The existence of the budget as an independent sphere of distribution objectively predetermined by society, the development of which requires appropriate centralized resources. The centralization of funds required for the smooth organization of turnover of assets across the entire economy to ensure the functioning of the economy. Economic development requires a redistribution of material, human and financial resources between its constituent units in order to achieve the optimal structure of production.

The existence of specific budgetary environment the cost of distribution is also due to the nature and functions of the state. That it needs to be centralized funds to finance the regions developing at an accelerated pace for social and cultural activities throughout society, solving the problems of a defensive nature, covering the general costs of government. Therefore. In our view, the combination of these financial relationships expressed through the economic category of "State Budget", the objective of which is caused by the need for the needs of the expanded reproduction, the nature and functions of the state.

As a special area of ​​cost allocation of state budget fulfills a specific social purpose - serves to satisfy national needs. From the budget expenditures made to expand production associated with the need to speed up scientific and technological progress and the achievement of the planned changes in the sectoral and territorial structure of social production, the reserves are formed on a national scale, covered by general, not related to the production costs of administration, made the cost of joint satisfaction of collective needs and the formation of funds for the maintenance of the disabled, the cost of the protection of the state borders, the content of the army, the costs associated with the development of integration, etc.

Thus, the state budget is characterized by the following features:

• Is a special form of distribution of economic relations associated with the isolation of the value of the social product, national income, gross domestic product in the hands of the state and use it to meet national needs;

• used for the redistribution of costs between the sectors of the economy, territories, countries, sectors of the economy, as opposed to finance businesses that mediate the process of creation and production costs and consumer finance unproductive, serving the consumption value;

• expresses a phase value distribution, which is not directly connected with the movement of the social product in its commodity form and is known in "isolation" from it, while in material production and non-production sphere of financial relations are closely intertwined with the commodity-money;

• the proportions and shape of the budget distribution of the social product cost determined by the needs of expanded reproduction in general and the challenges faced by the society at each historical stage of its development;

• area of ​​the budget allocation is central to the structure of finance, performing a leading role with respect to the other parts of the financial system (finance businesses, taxes, etc.).

"Over the last three years, our economic strategy was to achieve macroeconomic stabilization, which means reducing the deficit of the state budget and the consistent implementation of tight monetary and credit policy. Today, we are closer than ever to solving this problem. However, the successes of today do not give us grounds for reassurance. ".

In his message to the people of Kazakhstan, President Nursultan Nazarbayev emphasized the fact that we are on the verge of solving the problem of reducing the state budget deficit. This will be achieved by reducing the costs of the state budget, with the exception of social security of the population. For the final decision, it is necessary to reduce inflation in Kazakhstan and try to keep it in the appropriate framework, taking the example of countries such as Japan, Korea, Indonesia, Taiwan and Chile.

Macrostabilization - a means of achieving economic growth, our primary objective. If you talk about the long-term stabilization, the "big cash flow that can come into the country in connection with the development of our natural resources and of how we hope our exports in some sectors of the economy, can seriously endangering rate of our currency, pushing him up. This would imply the loss of other industries, especially export and processing. "

In his last message, the President stressed the need to intensify the fight against inflation. "We need to step up the fight against inflation. I expect that the National Bank will achieve significant results in the fight against inflation. "

New three-year budget should provide for:

• increase relative to 2007 as a whole average pensions by 2.5 times by 2012, including in 2009 - by 25%, in 2010 - 25% and in 2011 - by 30%. Thus by 2011, the basic pension should rise to 50% of the subsistence minimum;

• increase in the size of state social benefits and special government allowances since 2009 - an average annual rate of 9%;

• Gradual increase in the monthly benefit for the care of child reaches one year in 2010-2011. to a level above allowances in 2007 to an average of 2.5 times;

• an increase from 2010, the size of lump-sum benefits for the birth of 4th child and over more than 4 times as compared to 2007;

• increase in wages of public sector employees with a phased approach to its 2-fold level of the year 2012, including in 2009 - 25% 2010 - 25% and in 2011 - by 30%.

• In 2009, it is necessary to increase the annual quota for the relocation of the historic homeland of repatriates to 5,000 families, bring to 20,000 families a year.

According to the Agency of the Republic of Kazakhstan on Statistics, 2006 (December 2006 compared to December 2005) the prices and tariffs on consumer goods and services increased by 8.4% (in 2005 - 7.5%), products - by 7.3%, non-food products - by 7.1%, paid services - by 11.6%.

Key Macroeconomic Indicators

	2005 y.	2006 y.	forecast
	report	evaluation	2007 y.	2008 y.	2009 y.
Gross domestic product, bn	7457,1	9762,7	11879,8	14036,6	16540,4
Real change in GDP, in% to the previous year	109,5	109,0	108,6	108,9	109,0
GDP per capita in USD at the official rate	3703	5192	6560	7680	8962
GDP per capita, U.S. $ PPP	10618	12699	14922	17102	19519
The consumer price index, in% on average per year	7,6	6,9-8,5	5-7	5-7	5-7
The monetary base, billion tenge	663	1309	1622	1972	2196
Money supply, billion tenge	2065	3108	4222	5388	6486
The level of monetization of the economy,%	27,7	31,8	35,5	38,4	39,2
Exports of goods (FOB) U.S. $ bn	28,2	34,4	32,9	34,9	38,6
Imports of goods (fob) billion. USD	17,9	22,4	25,6	28,2	31,2
Investments in fixed assets, in% to the previous year	122,2	125	120	118	118
The volume of gross agricultural output, bln	763,2	850,8	933	1021	1117
in% to the previous year	107,3	104,5	103,2	103,0	102,8
The volume of industrial production (works, services), billion tenge	5124,1	6484,9	7429,4	8580,2	9886
in% to the previous year	104,6	107	107,2	108,6	108,8
Construction, bln	743,6	1077,5	1530,2	2037,3	2689,2
in% to the previous year	134,1	138	128	120	120
Transportation, bln	1377,3	1632,1	1858,3	2117,1	2415
in% to the previous year	107	106,7	106,6	106,6	106,7
Communication, bln	216,7	322,8	431,7	567,4	748,8
in% to the previous year	127,7	126	125	124	125
Trade, bln	1669,6	2316,6	2833,2	3366,2	3999,4
in% to the previous year	109,3	109,5	109,2	109,0	109,0

2.2. The main direction of the economic policy of Kazakhstan. Our economy in 2007 continued to grow at a rapid pace. According to preliminary estimates, the economy grew by 8.7%. However, the past year tested the strength of our financial system. Instability affecting the global financial markets, could not affect the economy of Kazakhstan. Similar phenomena are once again underscore the high degree of integration of our country into the global economic processes. The volatility of international financial markets and the uncertain outlook for the world economy is largely caused the downgrade of the country's international credit rating agencies. Tighter funding conditions in international markets have complicated the ability to attract external funding for Kazakh banks. As a result, it is expected that in 2008, real GDP growth will be 5 - 7%. The Government and the National Bank and the Agency for Regulation and Supervision of Financial Market and Financial Organizations (AFS), an action plan government and the banking sector, which aims to eliminate the negative impact of external factors. Also developed measures aimed at enhancing the competitiveness of Kazakhstan's economy and structural reforms. The main objective of the FSA and the National Bank is to ensure the stability of the financial system and the management of systemic risks that arise in connection with the situation on foreign markets. With respect to monetary policy, the National Bank will take measures to keep inflation in 2008 at a level not exceeding 10%. A healthy banking system is essential for the economic stability of Kazakhstan. The National Bank will continue to support the banking system by providing short-term liquidity by different methods (repo transactions, foreign exchange swaps and the provision of funds on the security of the minimum reserve requirements). FSA and the National Bank will strictly adhere to the principles of transparency and fair distribution of risks among all market participants, including shareholders and banks. The reduction in funding in foreign markets has led to a decrease in lending activities of Kazakh banks. In this situation, access to credit has become difficult for most borrowers. This concerned, in particular, the market share of construction. Construction companies have traditionally used bank loans as the main source of funding. In the past year, many of them were forced to suspend work due to financial difficulties. To protect the rights of investors, as well as to create more jobs, the government has provided targeted funding construction companies through development institutions. The pilot project was launched in 2007 for the city of Astana with a planned expansion to other regions in 2008. Ensuring a stable job growth and support of small and medium-sized businesses are a priority in 2008. The Government will implement a program of public-private partnership, which is currently being improved regulatory framework. Pooling resources of private business and the state will achieve real, tangible progress toward sustainable economic growth. The government has also developed a series of measures designed to protect the most vulnerable segments of the population. We will stick to a balanced fiscal policy that will provide a decent living standard of the population.

The situation on the international financial markets remain volatile and this will have some impact on the economy of Kazakhstan. These circumstances provide an opportunity to the Government and the National Bank and the FSA to carry out structural reforms. This will keep us steady economic growth in Kazakhstan and to achieve the well-being of every citizen of the republic.