The Supreme Audit Chamber (SAC) has identified problems with the expenditure planning of the National Fund for 2027. Issues arose regarding 66 projects with a total cost of around KZT 1 trillion.
WHICH PROJECTS WILL RECEIVE NATIONAL FUNDS
According to BES.media, the draft republican budget for 2027–2029 provides for KZT 5 trillion in targeted transfers from the National Fund. Of this, KZT 2 trillion is planned to be allocated in 2027, with a further KZT 1.5 trillion each in 2028 and 2029.
In 2027, these funds are expected to finance 272 projects, including 123 carry-over and 149 new ones. However, auditors identified shortcomings in compiling the list of objects, as it was prepared before the portfolio of state investment projects (SIPs) was finalised.
Of the total number of projects, 200 worth KZT 931.1 billion were classified as nationwide and critically important. A further two projects worth KZT 45.1 billion have closed status.
WHAT ISSUES AROSE REGARDING THE PROJECTS
The SAC found that 58 projects worth KZT 492.8 billion were not classified as critically important or nationwide. A further eight transport infrastructure projects worth KZT 515.9 billion had no defined status.
In total, issues arose regarding 66 projects worth KZT 1.009 trillion. The SAC recommended determining their status and bringing the SIP portfolio into compliance with budget legislation.
WHICH PROJECTS HAVE EXPIRING DESIGN DOCUMENTATION
Auditors also drew attention to 17 new projects worth KZT 16.55 billion whose design and estimate documentation (DED) is due to expire.
For seven projects worth KZT 4.83 billion, the documentation expires before the end of 2026. For a further ten projects worth KZT 11.72 billion, it expires in the first quarter of 2027.
Under the established rules, if construction has not begun within three years after the DED is approved, the documentation becomes outdated.
WHY FINANCING FOR CHECKPOINTS EXCEEDED THE ESTIMATE
Separate remarks concern the Taskala and Syrym checkpoints in the West Kazakhstan region (WKR) on the border with Russia.
The approved estimated cost of Taskala is KZT 19.72 billion. At the same time, KZT 3 billion has already been allocated to the facility for 2023–2026, and a further KZT 18.91 billion has been provided for 2027. Thus, total financing has reached KZT 21.91 billion, exceeding the estimate by KZT 2.19 billion.
The estimated cost of the Syrym checkpoint is KZT 22.19 billion. Taking into account the previously allocated KZT 19.09 billion and the KZT 3.15 billion provided for 2027, total financing exceeds the approved cost by KZT 53.8 million.
WHICH PROJECTS HAVE RISEN IN COST
The SAC recorded a change in the cost of 14 projects. The total increase amounted to KZT 65.68 billion.
The largest increase was for three irrigation network reconstruction projects in Almaty region — KZT 42.57 billion. The construction of fencing at the site of the ancient settlement of Bozok rose in price by KZT 10.31 billion, and two riverbank reinforcement projects — by KZT 8.2 billion.
In addition, the cost of six projects to build military camps and barracks increased by KZT 4.38 billion, and the Earth remote sensing satellite project — by KZT 1.51 billion.
At the same time, the cost of building the second stage of the National Scientific Centre in Astana was reduced by KZT 1.3 billion.
WHICH REMARKS HAVE ALREADY BEEN ADDRESSED
During the audit, the government addressed some of the identified shortcomings. In particular, four previously missing water infrastructure projects with a total cost of KZT 15.1 billion were included in the SIP portfolio.
At the same time, the remaining SAC remarks persisted. Auditors pointed to risks associated with the undefined status of projects, the expiry of DED and changes in estimated cost. These circumstances may require a review of timelines, scope of work and financing during budget execution.
