The economic policy of the Republic of Kazakhstan is formed by the state on the basis of strategic priorities for sustainable development, economic diversification, increasing its competitiveness, as well as ensuring the well-being and quality of life of the population. In the context of global challenges and transformation of the world economy, the main directions of state economic policy in Kazakhstan are the following:

Structural and sectoral policy.

The state is actively pursuing a policy of modernization and structural adjustment of the economy in order to move from raw material dependence to an industrial-innovative model of development. Special attention is paid to supporting industries that ensure scientific and technological progress, such as mechanical engineering, pharmaceuticals, information technology and «green» energy. Within the framework of the second five-year industrialization program, as well as the National Project on Entrepreneurship Development, industrial, agricultural, construction and other key areas are being developed in order to form competitive production and ensure employment of the population.

Investment policy.

The most important direction is the formation of a favorable investment climate and the development of public-private partnership mechanisms. The state encourages domestic and foreign investment in priority sectors of the economy through tax preferences, special economic zones and development institutions (for example, «Samruk-Kazyna», «Kazakh Invest»). Attention is paid to effective control over the implementation of investment projects, especially in infrastructure and industrial zones.

Depreciation policy.

Updating of fixed production assets on a modern technical and technological basis is a condition for increasing labor productivity and competitiveness. Kazakhstan is taking steps to improve the depreciation mechanism in order to encourage the modernization of production, especially in the industrial sector and the agricultural sector.

Policy of institutional transformation.

Kazakhstan continues to implement reforms aimed at developing market institutions and strengthening the role of the private sector. Particular importance is attached to strengthening property rights, transparency of privatization, development of digital public administration services, and combating the shadow economy. Institutional changes also include supporting fair competition and reducing administrative barriers to business.

Pricing policy.

The State regulates prices for goods and services of social significance, including utilities, fuel, and medicines. In the face of inflationary pressures, the Government takes measures to ensure price parity between industries and socially fair pricing, including by subsidizing certain product categories and controlling trade surcharges.

Antimonopolyand competition policy.

Ensuring a healthy competitive environment is one of the priorities of economic policy. Through the Agency for Protection and Development of Competition, measures are implemented to prevent abuse of a dominant position in the market, prevent collusion and unfair competition. Conditions are being created for the development of small and medium-sized businesses as a driver of an innovative economy.

Budget policy.

The state budget policy is focused on ensuring macroeconomic stability, improving the efficiency of expenditures, and developing human capital and infrastructure. The policy of optimizing inter-budgetary relations, decentralizing financial resources, and strengthening fiscal responsibility at the local level remains in place. Budget policy is «the process of accumulating and spending financial resources in order to ensure that the state implements its functions^[98]». Budget policy implemented through rational accumulation and distribution of financial resources, which is reflected in the republican (regional, local) budget, which is the country's financial plan. Budget policy is a policy that involves changes in government revenues and expenditures. The State budget has a direct impact on the level of aggregate demand and, consequently, the volume and growth rate of the gross national product. If the state increases its spending on the purchase of goods and services, then the gross national product increases by the same amount. By selling products to the state, economic entities increase their income and consumption, thereby contributing to a further increase in aggregate demand and national income. Thus, the increase in government spending creates a kind of multiplier effect.

Tax policy.

Kazakhstan continues to implement tax reform aimed at simplifying tax administration, digitalizing tax procedures and reducing the tax burden for small businesses. At the same time, fair taxation of income of individuals and legal entities is ensured, with an emphasis on supporting socially vulnerable segments of the population. Tax (fiscal) policy is considered as «a set of financial measures of the state in the field of taxes and expenditures, with the aim of influencing macroeconomic indicators^[99]». It is worth noting that tax policy should be approached very carefully, since it is necessary to take into account the interests of all economic entities, which, in fact, are extremely contradictory. So, on the one hand, the tax policy should ensure the necessary level of tax revenues, on the other – not to provoke a decline in business activity in the country and the departure of entrepreneurs «into the shadows».

Monetary policy.

The National Bank of the Republic of Kazakhstan implements an inflation targeting policy, ensuring the stability of the national currency and balanced growth of the money supply. Refinancing instruments are being actively developed, lending to priority sectors is being stimulated, and the financial system is being monitored in order to maintain its stability. Monetary policy is «a set of measures aimed at regulating the amount of money in the economy^[100]». The essence of monetary policy is expressed in ensuring the necessary amount of money supply in the economy and its availability. For developing countries, the availability of «long money»^[101] in the economy is particularly relevant, because it is often their absence that acts as the main barrier to the development of the national economy. An important condition is the conditions for providing credit resources, in particular interest rates. In this regard, the policy of Central Banks should be adaptive to the rapidly changing conditions of functioning of the domestic economy.

Currency policy.

Stability of the tenge, increasing confidence in the national currency, as well as building up gold and foreign exchange reserves are key tasks. The state pursues a flexible currency policy, taking into account the external economic situation and the need to protect the domestic market.

Foreign economic policy.

Kazakhstan supports an open and multi-vector trade policy, ensuring integration into international economic unions (EAEU, SCO, OIC, etc.) and developing exports of non-primary products. At the same time, measures are being implemented to protect domestic producers from unfair competition, and the participation of Kazakhstani companies in global value chains is being stimulated.

Financial policy.

It creates a set of measures aimed at rational use of financial resources in the formation and implementation of the state's economic policy^[102]. The main objective of financial policy is to ensure effective reallocation of financial resources, as well as to ensure their sufficiency.

Thus, the economic policy of the Republic of Kazakhstan is based on the principles of sustainability, inclusivity and digitalization. In modern conditions, the key task of the state is to achieve a balance between market mechanisms and strategic management of the economy, which requires constant improvement of all areas of economic policy, taking into account global and domestic challenges.

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^[98] Sidorova, E. A. Features of Budget Policy in the European Union. – Moscow: IMEMO RAS, 2012. – P. 9.

^[99] Pinskaya, M. R. Fundamentals of the Theory of Taxes and Taxation. – Moscow: Paleotype, 2004. – P. 55.

^[100] Abdul-Kadyrova, F. R. Monetary Policy of the Bank of Russia: Concept and Main Elements // ScienceTime. – 2015. – No. 12. – P. 13.

^[101] Long money – a term used in economics and finance to describe long-term (more than one year) borrowings (investments) or loans provided for an extended period. Long money is used to finance long-term development programs and to accumulate funds over the long run. It is considered an indicator of stable economic development.

^[102] Vladimirova O. N. Financial Policy in the Field of Innovation: Problems of Formation and Implementation. – Moscow: INFRA-M, 2013. – P. 5.