The volume of oil production in Kazakhstan by the end of the year will be reduced by two million barrels, Kapital writes. The announcement was made by the Minister of National Economy Alibek Kuantyrov.

Oil and the National Fund

Earlier it was planned that by the end of 2022 the oil production level would be 87.5 million tons.

"There is a slight decrease by 2 million to a total of 85.7 million. But we are compensating at the expense of a higher price," the minister answered a question from journalists.

The forecasts point to about 32% of GDP making up the assets of the National Fund by the end of the year. In addition, the minister explained why the government again intends to take money from the National Fund.

"The piggy bank will not be empty, because we remain at the same level of assets of the National Fund. Moreover, we will exceed the bottom threshold of the covenant of 30% of GDP. We take the money for the implementation of the instructions of the head of state, which have been given since January this year, as well as for the various policy documents." 

He explained that the National Fund is an instrument of countercyclical policy and has several functions: savings, stabilization, and anti-crisis. "This process is normal, it is part of the anti-crisis counter-cyclical policy," assured Alibek Kuantyrov.

According to him, the increase in the transfer from the National Fund has been compensated by additional revenues due to the high oil price. At the moment, the National Fund resources amount to $55-56 billion. At the same time, pensions and benefits will be increased by about 9%. The increase in social benefits is expected after the adoption of the budget law - tentatively in June-July.