Official raised concerns over excessive public spending by the government

Official raised concerns over excessive public spending by the government

Loose Change in Pockets: Kazakhstan's Income Plunge Despite Hefty Spending

In spite of a whopping 1.2 trillion tenge poured into employment programs like the 2020 Employment Roadmap and 'Enbek,' Kazakhstan's population incomes have taken a nosedive, according to a report by Total.kz. This incongruous state of affairs left Deputy Galyamzhan Eleuov scratching his head, prompting him to question the government during a Mazhilis plenary session.

"With nearly 1.2 trillion tenge earmarked for job creation and income maintenance initiatives, we expected some satisfaction on the socio-economic front. But alas, real cash incomes have plunged by 3%, and the population living below the minimum income threshold has ballooned from 4.3% to 5.3%. Can someone shed some light on this curious paradox?" inquired Eleuov.

Deputy Prime Minister Erlan Tugzhanov tried to untangle the Gordian knot.

"The past year proved to be a triallingly tumultuous time, with numerous hurdles springing up left, right, and center. This wasn't just a Kazakhstan issue; it was a global pandemic predicament. Our country bore the brunt of the brunt during the state of emergency, leaving millions jobless and the unemployment rate soaring to a staggering 54%. The government didn't stand idly by, though. They whipped up a storm of employment initiatives, such as the Employment Roadmap, the 'Enbek' program, and a plethora of other large-scale schemes," Tugzhanov recounted.

According to him, the unemployment rate had been held at a comparatively manageable 4.9%.

"Without these tactical interventions, the unemployment rate would have skyrocketed. As for employment, there are currently 1.4 million folks involved in these projects, marking a 17% surge over initial projections. This encompasses not just the creation of fresh jobs but also the preservation of existing ones, with a total of 2.3 million jobs safeguarded. According to the National Bureau's statistics, real incomes have experienced a 3.4% bounce, while real wages have surged by a solid 6.8%," the deputy prime minister elucidated.

Tugzhanov attributed these figures to data provided by various government bodies, which serve as the foundation for their calculations. He mentioned wage hikes for sectors such as the public sector, education, and healthcare – approximately 900,000 workers enjoyed a salary boost.

Navigating this tangled web of employment and income statistics, it seems prudent to delve a bit further into the factors affecting Kazakhstan's economy. Though the programs implemented seem promising, there are underlying challenges that may hamper their efficacy:

1. Inflationary Woes: Kazakhstan's economy has grappled with high inflation, which soared to 10.70% in April 2025, eroding purchasing power and income stability.
2. Dismal Food and Services Prices: The price increase for essential goods like food and non-food products exerts considerable pressure, reducing household purchasing power and offsetting the benefits of employment programs.
3. Program Efficiency: The effectiveness of initiatives like the Employment Roadmap and 'Enbek' varies, as they may not consistently create new high-paying jobs or evenly distribute benefits among the population.
4. External Economic Influences: Kazakhstan's economy is vulnerable to external factors, such as global market trends, trade policies, and the economic health of key trade partners, which can affect stability and income levels.
5. Inequality in Wealth Distribution: If wealth and benefits aren't carefully disseminated, certain segments of the population may not reap the intended rewards from employment programs, leading to a decrease in overall incomes.

To tackle these obstacles, it may be wise to concentrate on beating inflation, enhancing the effectiveness of employment programs, and ensuring a fair distribution of economic prosperity throughout the populace.

1. The inflation rate in Kazakhstan, which reached 10.70% in April 2025, has been a significant concern, as it erodes purchasing power and income stability despite the government's efforts in financial and business sectors aimed at job creation and income maintenance.
2. In the midst of examining Kazakhstan's economy, the efficiency of business and political initiatives such as the Employment Roadmap and 'Enbek' programs should be scrutinized, as they may not consistently create high-paying jobs or equitably distribute benefits among the population, contributing to a general decline in overall incomes.

Read also: