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President • 20 March, 2018

Five Social Initiatives of the President of Kazakhstan

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Kazakh President Nursultan Nazarbayev, at the joint session of the Chambers of the Parliament, addressed the people of Kazakhstan and voiced five new social initiatives, which in the near future need to be implemented in the country.

First initiative: New Opportunities for Purchasing Housing for Each Family

N. Nazarbayev proposed to launch the 7-20-25 Program, which will increase the availability of housing mortgages for the broad masses. Thanks to this, every working Kazakh will get an opportunity to get a mortgage loan. The President announced its key parameters: the interest rate on the loan is no more than 7% per annum, the initial contribution should not exceed 20%, and the loan term is up to 25 years.

Second initiative: Reducing the Tax Burden to Increase Wages of Low-paid Workers

The Head of State announced a planned reduction in the tax burden to increase the wages of low-paid workers. From January 1, 2019, reduce the individual income tax by 10 times – up to 1% for those who receive wages not more than 25 times the minimum monthly calculation.

At the same time, it is necessary to direct the released funds from this reduction to increase the payment of their labor. As a result, wages of at least one third of the country's earners, more than 2 million people, will grow without increasing the burden on employers.

In the future, the Government needs to explore the prospects for introducing a progressive scale of income tax, the President of Kazakhstan stressed.

Third initiative: Increasing the Accessibility and Quality of Higher Education and Improving the Living Conditions of Students

To increase access and quality of higher education, the President proposed to allocate an additional 20 thousand grants to 54 thousand allocated annually in the 2018/19 school year. Of these, 11 thousand –for bachelors in technical specialties. This will prepare thousands of specialists who will be in demand in the new economy in the conditions of the fourth industrial revolution. We are talking, first of all, about engineers, specialists in the field of information technology, robotics, nanotechnology.

At the same time, it is necessary to increase the cost of new grants in all universities in technical and agricultural specialties to the level of grants in national universities. These measures will help increase the enrollment of higher education graduates of secondary schools, which is a worldwide trend.

At the same time, according to Nursultan Nazarbayev, creating an education system according to world standards, it is necessary to pay due attention to the conditions of students' education and residence. To solve this problem, it is planned to deploy work on the construction of dormitories by universities, colleges, development companies on the principles of public-private partnership.

The state, for its part, through the Ministry of Education and Science will guarantee a gradual reimbursement of part of the investments directed to the construction of dormitories," the President said.

He instructed to ensure the construction of at least 75 thousand places in new student dormitories until the end of 2022.

Fourth initiative: Expansion of Microcredit

As part of this initiative, the Head of State instructed to allocate an additional 20 billion tenge in 2018, bringing the total amount of microcredit to 62 billion tenge. As a result, the total coverage by microcredits will be more than 14 thousand people, which will double the level of 2017. The significance of this initiative is that it will allow thousands of people to open their own business. It is especially important for rural areas, for the development of entrepreneurship in the countryside.

Fifth initiative: Further Gas Supply of the Country

The President of Kazakhstan announced the decision to build a gas pipeline to Astana from the Kyzylorda region.

The project route for the construction of the main gas pipeline starts in Karaozek (Kyzylorda region) – Zhezkazgan – Karaganda – Temirtau – Astana. To do this, it is required to attract appropriate funds, including from international financial institutions. This will not only provide gas to 2.7 million people, but also create new production of small and medium businesses.

Ecology will also improve. Only in Astana, the transfer to gas will reduce harmful emissions into the atmosphere 6 times or 35 thousand tons per year.

The implementation of this project will make it possible to supply other regions with gas.

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