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The head of the Ministry of Finance explained why the Astana International Financial Centre is not yet self-sustaining and continues to receive funding from the state budget.

During a meeting of the Mazhilis, the Minister of Finance explained why the Astana International Financial Centre (AIFC), established several years ago, has yet to achieve self-sustainability and continues to receive funding from the state budget, reports NUR.KZ correspondent.
The head of the Ministry of Finance explained why the Astana International Financial Centre is not yet self-sustaining and continues to receive funding from the state budget.

"According to the budget request from the Ministry of Finance, expenses have been planned for program 099 - targeted transfers to JSC "Administration of the AIFC." The financial center has been operating for 6 years, and throughout this time, the republican budget has borne the costs of its maintenance.

The funds are allocated for the maintenance of the center's bodies and organizations, including the salaries of employees. Since the AIFC is a strategic project for Kazakhstan, government funding was likely necessary during the initial phase. However, as we can see, funding for the center from the republican budget will continue for the next 3 years," - stated deputy Irina Smirnova.

She noted that approximately 21.7 billion tenge is expected to be allocated and asked the head of the Ministry of Finance why the AIFC has not yet achieved self-sustainability.

"Indeed, today we are covering only the salary fund of the management company from the republican budget. You would know that we have the AIFC court and the AIFC arbitration. These bodies cannot generate or earn funds on their own, which is why they are financed by the republican budget. This is also an international practice. Large centers around the world generally have operational expenses covered by government funds.

However, since 2019, we have been reducing expenses by 15% annually, and we are continuing this trend. For next year, we have planned 8.9 billion tenge. This reduction is gradual, but I want to mention that since its inception, the AIFC has generated additional tax revenue of 115 billion tenge, while we have spent 107 billion on its maintenance," - responded the head of the Ministry of Finance, Madi Takiyev.

He added that with planned expenditures of 8.9 billion tenge for the AIFC this year, tax revenues will amount to 50 billion tenge.

"This trend is increasing, so in the future, once we reach a certain pool, we will come to the point where it becomes self-financing, but only excluding the salary fund," - Takiyev added.

The Astana International Financial Centre (AIFC) , according to information on its website, plays a key role as a regional business and financial hub, linking the economies of Central Asia, the Caucasus, the EAEU, Western China, Mongolia, the Middle East, and Europe. The AIFC, according to the same data, is involved in the following activities:

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