The Supreme Audit Chamber (SAC) presented the results of a state audit on the effectiveness of measures to combat the shadow economy, identifying systemic shortcomings in coordination and the fight against the shadow sector.
According to the agency's press service, despite the reduction of the shadow economy's share in GDP from 28.8% in 2017 to 17.5% in 2023, there are serious problems in the implementation of state policy. It is reported that Kazakhstan aims to achieve a figure of 15%, typical for developed countries of the OECD (Organisation for Economic Co-operation and Development).
According to the auditors, the main obstacle is the lack of a single coordinating body. Previously, the Agency for Financial Monitoring (AFM) performed these functions, but they were later removed from the agency's remit.
"There is no coherent work among state bodies. Comprehensive plans are insufficiently focused on reducing the shadow economy. Measures are poorly developed, and some are effectively removed from oversight without being implemented. There is no assessment of their impact on reducing the shadow economy. At the same time, the audit showed that there is a significant volume of hidden turnover in the country," noted the Chairman of the SAC, Alikhan Smailov.
The auditors also expressed doubts about the methods for determining the non-observed economy.
"For example, the coefficient of non-cash turnover is used. This is the ratio of individuals' non-cash payments for goods and services to GDP. But the share of such payments is growing every year anyway, which automatically 'reduces' the level of the shadow economy. Therefore, the validity of this coefficient is questionable," the statement reads.
At the same time, according to the audit data, there is a significant discrepancy between official earnings and remittances from labour migrants. Citizens of three Central Asian countries officially earned 136 billion tenge in Kazakhstan over three years but sent about 1 trillion tenge to their home countries.
The audit results revealed:
- indirect budget losses on the revenue side amounting to 74 billion tenge;
- 18 procedural violations;
- 23 systemic shortcomings.
Recall, previously the SAC estimated potential budget losses from shadow imports of cars at more than 71 billion tenge.