Funds Totalizing Over 30 Billion Tenge Allocated for Regional Price Regulation
Revised Article:
Got a burning question about price control measures, Deputy Daniyar Alimbayev wanted answers. Relaying the news, a Total.kz correspondent reports that Alimbayev queried about government actions to manage prices.
"The government's report in 2020 displayed an inflation rate of 7.5%, lingering within the projected range of 8-8.5%. Yet, there's been a steep increase in the prices of essential food items like sunflower oil (33.7%), sugar (32.8%), cereals (28.7%), potatoes (16.8%), and fruits (14.9%). Not to mention that gasoline, electricity, pharmaceutical products, and housing costs have also skyrocketed. But, the inflation rate itself remains within the target range," Alimbayev expressed his concerns to the First Deputy Prime Minister Alikhan Smailov.
Smailov addressed the complexity of the inflation issue, particularly due to the pandemic.
"It's no secret that price increases aren't exclusive to Kazakhstan; neighboring and global countries are grappling with the same issue, including for socially sensitive goods. To tackle this, the government has hatched a roadmap featuring 45 urgent and strategic steps. As an example, the Ministry of Agriculture has devised a prosperity plan to boost our domestic market," Smailov stated in a Mazhilis plenary session.
He further elaborated on the allocated funding of 30 billion tenge for subsidies to the Ministry of Agriculture and optimizing state purchases for regional stabilization funds. He also mentioned forward contracts with 33 billion tenge from local budgets for price stabilization, with plans to enhance this amount to 50 billion tenge. In addition, Smailov mentioned various anti-monopoly actions, restrictions, and agreements to curb food price volatility. The development of 24 distribution centers is underway, with government supervision ensured, Smailov concluded.
- Deputy Daniyar Alimbayev expressed his concerns about the inflation rate, despite its staying within the target range, as prices of essential food items, sunflower oil, sugar, cereals, potatoes, and fruits have substantially increased.
- In response to Alimbayev's question, First Deputy Prime Minister Alikhan Smailov highlighted the intricacies of the inflation issue, acknowledging that neighboring and global countries are also experiencing similar price increases, particularly for socially sensitive goods.
- Smailov revealed that the government has established a comprehensive roadmap with 45 urgent and strategic steps to combat inflation, including a prosperity plan to bolster the domestic market by the Ministry of Agriculture.
- Furthermore, Smailov disclosed that the government has allocated 30 billion tenge for subsidies to the Ministry of Agriculture, optimized state purchases for regional stabilization funds, and is planning to enhance the price stabilization amount to 50 billion tenge through forward contracts with local budgets.
