Ministry of Finance Republic of Kazakhstan Қазақстан Республикасы Қаржы министрлігінің Қазынашылық комитеті Treasury Committee Ministry of Finance Republic of Kazakhstan Ministry of Finance Republic of Kazakhstan Reporter: Aigul M. Baiguzhina Acting Chair Treasury Committee, Ministry of Finance of the Republic of Kazakhstan Vienna, 2018

Legal and Regulatory Framework Budget Code of the Republic of Kazakhstan Law of the Republic of Kazakhstan No. 461, dated July 2, 2003, “On the Securities Market” Resolution No. 466 of the Government of the Republic of Kazakhstan, dated April 3, 2009 “On Approval of the Rules for Issuance, Placement, Servicing and Redemption of Government Treasury Bonds of the Republic of Kazakhstan” Order No. 540 of the Minister of Finance of the Republic of Kazakhstan, dated December 4, 2014 “Rules for Budget Execution and Cash Servicing Thereof” Bank Account Agreement No. 574, dated November 14, 2001, for servicing TSA Agreement on Deposit Taking (Bank Deposits) and Saving Account Opening and Maintenance No.404 NB, dated August 21, 2015

Description of Functional Modules Forecasting cashflows and amounts needed for the national budget as guaranteed transfers from the National Fund; Daily monitoring of the national budget execution with focus on current programs and budgetary development programs; Daily monitoring of withdrawals to the National Budget; Daily close of business in TIIS and compiling a TSA analysis; Carrying out activities to deposit temporarily free national and local budgetary cash funds in the RK National Bank; Ensuring provision of cash for state-owned institutions in cases stipulated for in the budgetary legal framework Cash Management

Integrated Plan of Revenues and Funding of National Budget Payments for 2018 “Approved" Chair, Treasury Committee Ministry of Finance of RK _______________ " 22 " December 2017 SEAL   Type of budget National Budget Period 2018 Unit Thousand Tenge Budget Classification Codes Financial plan for the year План по месяцам January February March April May June July August September October November December Наименование REVENUES TAX REVENUES 1 Tax revenues NON-TAX REVENUES 2 Non-tax revenues 3 Fixed Capital Sales Revenues 4 Transfer Revenues II. EXPENDITURES 5 Repayment of public budget loans IV BALANCE OF FINANCIAL ASSET TRANSACTIONS ACQUISITION OF FINANCIAL ASSETS V. BUDGET DEFICIT (SURPLUS) VI. FINANCING BUDGET DEFICIT (USING BUDGET SURPLUS) 7 Receipt of loans 16 Repayment of loans USED BALANCES OF BUDGETARY FUNDS Head of structural unit of an authorized budget executing body, responsible for drafting the Integrated Plan

Analysis and Expected Execution of the National Budget in 2016 December Name Planned Actual Act. Vs planned deviation % REVENUES 7 648 362 885 632 133 094 726 761 772 7 662 220 261 13 857 376 100.2 Tax Revenues 3 918 018 771 336 645 581 464 818 189 4 275 886 704 357 867 933 109.1 Non-tax revenues 272 651 673 18 300 515 17 698 460 298 243 327 25 591 654 109.4 Fixed assets sales revenues 9 504 814 1 782 914 590 464 7 786 366 -1 718 448 81.9 Transfers received 3 448 187 627 275 404 084 243 654 659 3 080 303 864 -367 883 763 89.3 including guaranteed transfer 2 479 726 312 189 726 312 150 000 000 2 110 000 000 -369 726 312 85.1 including target transfer 752 848 832 64 340 204 69 574 097 745 574 097 -7 274 735 99.0 EXPENDITURES 8 045 742 230 827 903 668 823 095 466 7 899 800 078 -145 942 152 98.2 Social benefits to select categories of citizens 1 793 139 626 131 962 820 139 096 056 1 791 751 858 -1 387 769 99.9 External loans interest payments 152 296 281 4 108 351 1 200 058 147 514 736 -4 781 545 96.9 Internal loans interest payments 399 014 694 35 020 046 24 630 957 375 695 873 -23 318 821 94.2 Salaries 507 705 621 48 990 013 55 529 093 506 696 069 -1 009 553 99.8 JS NC Astana EXPO-2017 (243065030) 267 008 197 100.0 Subventions 836 882 948 41 424 158 41 424 157 Target development transfers, target current transfers 1 333 675 614 147 950 846 147 909 952 Expenditures funded by RK NF target transfers 406 214 117 34 250 318 37 126 535 406 435 523 221 406 100.1 Expenditures funded by RK NF target transfers (RK Government’s special reserve) 87 300 000 25 483 958 18 610 559 80 426 601 -6 873 399 92.1 Other expenditures 2 104 628 367 341 901 119 336 784 424 1 997 962 301 -106 666 067 94.9 NET BUDGET LENDING 223 163 225 -59 686 632 -60 711 734 221 428 424 -1 734 801 99.2 Budget loans including 315 031 873 5 186 291 repayment of budget loans 91 868 648 64 872 923 65 898 025 93 603 449 1 734 801 101.9 BALANCE OF FINANCIAL ASSETS TRANSACTIONS 282 143 545 442 235 668 045 282 176 990 33 445 Acquisition of financial assets including 285 913 545 568 299 910 799 285 913 544 -1 Revenues from sales of public financial assets 3 770 000 126 064 242 754 3 736 554 -33 446 99.1 BUDGET DEFICIT (SURPLUS) -902 686 115 -136 526 177 -36 290 005 -741 185 231 161 500 883 82.1 BUDGET DEFICIT FUNDING 902 686 115 136 526 178 36 290 005 741 185 231 -161 500 883 Loans received 1 107 600 838 109 789 943 168 356 314 1 016 379 815 -91 221 023 91.8 Repayment of loans 384 156 023 3 271 404 6 989 910 381 176 000 -2 980 023 Internal public loans -22 361 706 35 418 819 -92 780 525 -70 418 819 414.9 Receipt 250 418 819 180 000 000 71.9 Repayment 272 780 525 External sovereign loans 745 806 521 71 099 720 161 366 404 727 984 339 -17 822 181 97.6 Receipt (loan agreements) 857 182 019 74 371 124 836 379 815 -20 802 204 Receipt (Public Issuable securities ) Redemption 111 375 498 108 395 475 97.3 Used balances of budget funds 179 241 300 30 007 638 -125 076 399 105 981 417 -73 259 883 59.1 NB Cash control account balance (264 332 369,813) 157 946 624 NB balance including external loans (264 361 593,1) 158 380 176 Revenues (less internal debt) 8 693 735 506 791 629 766 941 340 696 8 619 785 390 -73 950 116 Expenditures (less internal debt) 8 872 966 906 820 117 622 815 398 791 8 726 171 135 -146 795 771 98.3 Revenues 8 851 602 371 806 922 024 961 258 865 8 775 940 078 -75 662 293 Expenditures 9 030 843 671 836 929 662 836 182 466 8 881 921 495 -148 922 176 98.4 For reference: VAT : 45.6 bn Tenge returned out of total 79.8 bn Tenge NF target transfer funded expenditures: 745.6 bn Tenge executed out of total 752.8 bn Tenge

Data on Cash Balances as of November 5, 2018 (for Nov 02, 18) Vice-Minister of Finance of the Republic of Kazakhstan B. Sholpankulov No. Name Amount 1 Cash balance of NB CCA -45 769 575 2 Cash balance of LB CCA 213 799 747 3 TOTAL cash balance on CCA of the budgets (1+2) 168 030 172 4 Cash balance on NB QPSE CCA 70 869 344 5 Cash balance on LB QPSE CCA 58 041 628 6 Cash balance on RK NF CCA 167 074 7 Cash balance on EAEU CCA 703 428 8 Cash Balance on local self-government CCA 1 091 730 9 Cash balance on MHIF CCA 17 119 743 10 Other accounts 61 347 621 11 TOTAL cash balance on other CCA’s (4+5+6+7+8+9+10) 209 340 569 12 TSA Deposit in national currency -375 000 000 13 Total balance of TSA: (3+10+11) 2 370 741 For reference: RK National Fund in foreign currency, ($ mln.) 56 669.50 Net international reserves, ($ mln.) 28 851.30 RK National Fund (total in Tenge) 22 622 393 764 LB deposit in national currency 36 000 000 Thousand Tenge

Cash Control Accounts (CCA) in the Treasury Treasury Single Account (TSA) National Budget CCA CCA of local budgets CCA for chargeable services Charity CCA Temporary cash placement CCA Local self-government CCA CCA for external loans reconversion or related grants Funds deposited with the RK National Bank National Fund CCA Targeted Funding CCA CCA of EAEU member-states NB and LB quasi-public sector entities’ accounts

Procedures for Issuance of Public Securities Ministry of Finance of the Republic of Kazakhstan Terms of Issue Primary Dealer Orders to settle accounts Public Securities sales and purchase transactions

Potential Investors in Public Securities PS of the RK MoF Insurance companies Pension Fund Investment companies Individuals Second tier banks

Placing Deposits with the RK National Bank Ministry of Finance of the Republic of Kazakhstan National Bank of the Republic of Kazakhstan - Transaction Certificate National Budget Servicing local budgets

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