A Review of Fiscal Policy (2022 results)

Risks and prospects of fiscal policy development in 2023

Increased geopolitical tensions due to the conflict between Russia and Ukraine, problems in supply chains and transportation of oil in April-May of last year led to the need to provide additional support to the economy. As a result, the Government revised its budget plans for 2022 and increased expenditures.

The sources of covering expenses were the revised guaranteed transfer level from the National Fund of the Republic of Kazakhstan (revision of the plan by +1.6 trillion tenge) and own budget revenues (by +3.5 trillion tenge). At the same time, fiscal stimulus in the short term primarily affects the expansion of aggregate demand, which leads to an additional increase in inflation.

According to the results of the year, the budget deficit was reduced due to record tax revenues over the past 5 years and under-fulfilled expenditure plans.

The budget was also strongly influenced by the transfer receipts from the National Fund of the Republic of Kazakhstan, without which the non-oil deficit is significantly deepening and exceeds the levels of previous years. Thus, the further development of fiscal policy will largely depend on external macroeconomic conditions and energy prices as before.

At the same time, we believe that the new concepts being developed today for the development of various sectors of the economy, designed to ensure the further trajectory of the country’s social and economic development, will continue to put pressure on the budget expenditures.

The issue of the budget revenue growth with a reduction in the share of oil revenues, planned within the framework of the republican budget for 2023-2025, remains quite difficult in the conditions of prolonged political/economic tension and global tightening of monetary measures.

And this, in our opinion, causes some uncertainty in the planned fiscal policy implementation this year.

Klara Seidakhmetova


12 May 23


Beauty industry: beauty salons

In this work, we analyzed the state of the world and Kazakhstan beauty salon markets, their sizes, characteristics and trends in the beauty industry.

The global beauty salon market is at rapid growth and will continue to grow in the coming years. The growth in demand for beauty services in different countries is associated not only with an increase in people's living standards but with a change in consumer preferences also. As a result of our research, it turned out that the most popular category of beauty services worldwide is hair care, then nails and skin care.

At the same time, the costs of beauty industry services in different countries differ due to cultural and economic factors. We also found that chain beauty salons are more common in Europe and the USA than in Kazakhstan. This is probably a consequence of the industry being less developed due to differences in consumer preferences.

Kazakhstan's beauty salon market is also in dynamic development, and the most popular service is hair care. The study of the domestic market was carried out through the analysis of up-to-date data from our database, which contains information about the amount, number and frequency of transactions of our customers.

As a result of the study, we determined that there is fairly high competition between beauty salons in the domestic market due to the discrepancy between supply and demand. The latter is insufficient for such a number of salons. The shortage of beauty salons and hairdressers is observed only in a few regions of the country. Perhaps that is why the average age of salons in Astana and Almaty cities is small. Also, there is relative equality in the cost of men's and women's haircuts in Kazakhstan.

The results of the study can be useful for developing an industry development strategy and making decisions for a new or existing business.

One-off Researches

BusinessNargiza Makenova

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