Capital investments in Kazakhstan's state assets are crucial to the country's economy. They are aimed at developing infrastructure, improving housing stock, modernizing equipment, and other significant projects. This article provides a detailed analysis of capital expenditures and investments in the quasi-state sector of republican and municipal property based on the National Report for 2023, approved by the Government of the Republic of Kazakhstan's Resolution No. 909 dated October 31, 2024. The data covers the period from 2021 to 2023 and offers a comprehensive view of the dynamics and funding priorities, writes Economy.kz expert Alen Serik.
“From 2021 to 2023, the total volume of capital investments in republican property amounted to 8,157.1 billion tenge, while in municipal property it reached 13,241.5 billion tenge. This confirms the significant scale of financing and the priority focus on modernizing facilities at both national and regional levels. However, the year-on-year dynamics of investments show substantial fluctuations, reflecting adaptation to economic conditions and changing state priorities,” notes Alen Serik.
In republican property, capital investments demonstrate unstable but overall growth trends.
In 2021, investments amounted to 2,533.7 billion tenge, highlighting the focus on developing key state assets. In 2022, this figure decreased to 2,258.7 billion tenge, likely due to a reassessment of priorities and optimization of expenditures. In 2023, investments rose again to 3,364.7 billion tenge, marking a record for the analyzed period. The increase in capital investments in 2023 indicates the government's commitment to accelerating the implementation of important projects and completing ongoing modernization programs.
Capital investments in municipal property exhibit even greater instability.
In 2021, the investment volume reached 7,507.1 billion tenge, significantly exceeding similar investments in republican property. This reflects a high demand for improving and modernizing local facilities. In 2022, capital investments sharply fell to 3,382.5 billion tenge. Possible reasons for this could include reductions in regional budgets or the redirection of funds to other tasks. In 2023, the investment volume again decreased to 2,351.9 billion tenge, which may indicate a reassessment of priorities or the completion of several major projects.
Analyzing the structure of capital investments, several categories of assets can be identified that account for the main expenditures. Among them are buildings, structures, machinery, and equipment.
These assets form the backbone of infrastructure and require constant investment for maintenance and improvement. For instance, over 4 trillion tenge was allocated to structures in 2023, underscoring the importance of this area for the state. Capital investments in transport and machinery also hold significant weight, although they show less dynamism compared to real estate and infrastructure.
The most substantial investments are directed toward non-residential buildings. In 2023, their book value amounted to 2,651.5 billion tenge for municipal property and 382.6 billion tenge for republican property. This is related to the need for modernizing state buildings, offices, and other facilities used in government activities. Residential buildings also require ongoing investments. In 2023, their book value in republican property was 125.8 billion tenge, while in municipal property it stood at 667.4 billion tenge. This highlights the social significance of capital investments in the housing sector.
Land plots are also among the significant assets held by state entities. In 2023, the book value of land plots in republican property was 329.3 billion tenge, and in municipal property, it was 503.8 billion tenge. Land assets are vital for expanding government projects, infrastructure, and constructing new facilities. Investments in land also imply long-term development plans and ensuring asset sustainability.
The technical base of the state, which includes machinery, equipment, and vehicles, plays a crucial role in maintaining government functions. In 2023, the book value of machinery and equipment in republican property was 419.0 billion tenge, and in municipal property, it was 2,793.3 billion tenge. This increase in investments in the municipal sector may be linked to the need for modernizing local infrastructure and supporting services provided by government organizations at the local level. Transport assets also require continuous renewal. In 2023, their value in republican property was 172.6 billion tenge, while in municipal property, it was 173.4 billion tenge.
Intangible assets, such as software and patents, are becoming increasingly important in the public sector.
In 2023, their value in republican property was 25.7 billion tenge, and in municipal property, it was 28.1 billion tenge. These investments reflect the growing role of technology and intellectual products in public administration. Other fixed assets, including various equipment and inventory, also require significant expenditures. In 2023, their book value was 106.3 billion tenge for republican property and 493.5 billion tenge for municipal property.
Although biological assets represent a smaller share of the total volume, their importance is also increasing.
In 2023, their value in republican property remained at 0.5 billion tenge, while in municipal property, it was 5.1 billion tenge. Biological assets include forest areas, agricultural resources, and other natural objects that require management and protection. These investments confirm the necessity of conserving natural resources for future generations and supporting environmentally responsible development.
“Republican and municipal property require continuous financing to maintain and modernize infrastructure, buildings, equipment, and natural resources. The dynamics of investments over the years indicate the need for a flexible approach to fund allocation, adapting to changing economic conditions and needs. Investments in land, machinery, biological, and intangible assets affirm the government's commitment to sustainable development and improving the quality of life for the population,” states Alen Serik.