In Kazakhstan, recipients of agricultural subsidies are now legally required to prove the effectiveness of the state money invested in them. This measure was implemented on the recommendation of the Supreme Audit Chamber (SAC).
According to the press service of the agency, in December last year the SAC conducted an audit of the effectiveness of the use of budget funds allocated for agricultural subsidies.
Following the audit, the agency recommended that the government amend the legislation and officially establish the concept of a “reciprocal obligation” for subsidy recipients. It is expected that this will be an important step towards increasing the transparency of state support in the agricultural sector.
“As a result, the necessary amendments were adopted by the Law of the Republic of Kazakhstan ‘On introducing amendments and additions to certain legislative acts of the Republic of Kazakhstan on issues of aquaculture, the agro-industrial complex, the electric power industry and the redistribution of functions of certain central state bodies’ dated 12 June 2025,” the statement said.
Now farmers and agricultural companies must prove the effectiveness of the state money invested in them.
“For example, through increased production, job creation, or higher yields. As a result, this will help strengthen control over the targeted use of subsidies and improve their effectiveness,” the statement said.
As an example of violations, a recent case in the Zhambyl region can be cited. The Merken District Court announced a verdict for seven employees of an LLP. As reported, two managers of the company embezzled budget funds allocated as subsidies to improve the yield and quality of crop production.
According to the scheme, the LLP and a local peasant farm purchased apple tree seedlings of various varieties. When signing the purchase and sale contracts, a specific number of seedlings was indicated.
In turn, five employees of the LLP, on the instructions of the management, tampered with the first pages of the contracts, inflating the number of seedlings to obtain large subsidies. The total damage caused to the state exceeded 373 million tenge.