The Senate proposes to transfer subsidizing functions to the ACC
June 20, 2024

In Kazakhstan, more than 2 trillion tenge has been allocated to subsidize the agricultural sector over the past five years. This year, 435 billion tenge are provided for these purposes. Despite the significant amount of government support, agriculture remains one of the low-profit industries. The reason is the low efficiency of subsidies and chronic underfunding of the industry. In this regard, Senate deputies propose changing approaches to providing state support by transferring subsidizing functions to the Agrarian Credit Corporation and giving maslikhats the authority to determine priorities for the development of the agro-industrial complex in the regions.

“As the head of state noted, all support measures should be provided on a one-stop-shop basis. It is necessary to strengthen the potential of the Agrarian Credit Corporation and transfer to it the functions of subsidizing agriculture. To do this, it is necessary to combine the services of preferential lending and subsidies for agricultural entities within one digital platform,” said Senator Zakirzhan Kuziev, making a request to the Prime Minister.

The deputy also proposed giving local maslikhats the right to independently determine preferences for the development of deep processing and subsidies for agricultural crops and fertilizers in their regions. He noted that regional leaders and local maslikhats are better aware of the natural conditions of their regions and have clear guidelines on the need for products: what to sow, what crop to support and what processing plants need to be built.

“Expanding the powers of local maslikhats to manage subsidies in the agricultural sector in the regions will make it possible to create a competitive environment for processors by reimbursing investment costs, attracting investors to the region on favorable terms. This measure will give a serious impetus to the development of the cluster and can serve as a driver for the cultivation of agricultural crops and their deep processing in the regions. And thereby increase the efficiency of subsidies and preferences allocated to the country’s agricultural sector,” concluded Zakirzhan Kuziev.