EC[ON]OMY

Local budget performance in Karaganda: key findings

The combined revised annual revenue target for the 13 local budgets in Karaganda Region – six cities of regional significance and seven districts – stands at KZT 360,795.0 million. As of July 1, 2026, cumulative revenue reached KZT 168,685.6 million, or 46.8% of the annual target. Revenue amounted to 103.7% of the consolidated target set for the reporting period.

Tax receipts account for 97.1% of total revenue collected by the local authorities, or KZT 163,874.4 million. Proceeds from the sale of fixed assets contribute 2.3%, or KZT 3,854.5 million, while non-tax revenue provides 0.6%, or KZT 956.4 million. The region’s local revenue base is therefore overwhelmingly tax-driven.

The regional budget, administered at the regional level, is compiled separately from the local budgets. Its own tax receipts stood at KZT 27,285.1 million on the reporting date, equivalent to 45.9% of the annual target, with social tax providing the largest share. Total regional budget revenue, including transfers from the national budget, reached 55.3% of the annual target. Regional budget figures are excluded from the ranking of local authorities and are considered separately.

Tax revenue structure

Local tax revenue comes from five main categories. Income tax contributes 66.4% of tax receipts collected, making it the dominant source of local budget revenue. Social tax accounts for 15.0%, property taxes for 11.2%, domestic taxes on goods, works and services for 5.1%, and compulsory charges for legally significant actions for 2.4%.

Local Authorities Ranked by Tax Revenue (July 1, 2026, KZT million)

Concentration of the tax base

Although Karaganda, Temirtau, Balkhash, Saran, Shakhtinsk and Priozersk represent six of the region’s 13 local budgets, the six cities of regional significance account for 84.0% of tax revenue collected. The seven districts provide the remaining 16.0%. Thethree largest contributors – Karaganda city, Temirtau city and Balkhash city – generate 79.6%, while the five largest account for 87.1%.

The Herfindahl-Hirschman Index for the distribution of tax revenue among local authorities stands at 3,852 points, indicating a highly concentrated tax base. Karaganda alone generates 59.5% of local tax revenue in the region, meaning that the regional trend is largely driven by the city’s budget performance. The six smallest contributors collectively account for just 8.0% of the tax base.

Leaders and laggards in target performance

Measured against the revised annual target, with 50% serving as the linear benchmark for the first half, Aktogay District leads at 58.2%, followed by Priozersk city at 55.8% and Shet District at 55.1%. The lowest readings were recorded in Temirtau city at 40.8%, Karaganda city at 45.9% and Karkaraly District at 48.3%.

Against the consolidated target for the reporting period, Aktogay District leads at 160.5%, followed by Shet District at 122.6% andAbai District at 117.0%. Every local authority in the region met or exceeded its consolidated revenue target for the reporting period.

Tax receipts provide 97.1% of the revenue base for local authorities in Karaganda Region, with income tax accounting for 66.4% of all tax revenue. Local target performance is therefore sensitive to changes in payrolls and corporate profits.

The 84.0% concentration of the tax base in Karaganda, Temirtau, Balkhash, Saran, Shakhtinsk and Priozersk, together with a Herfindahl-Hirschman Index of 3,852 points, underlines the extent of this concentration. Region-wide performance is shaped largely by Karaganda’s budget results, rather than by the average trend across the other local authorities.

As of July 1, tax revenue across the region had reached 46.4% of the annual target, below the linear first-half benchmark of 50%. Revenue nevertheless stood at 103.4% of the consolidated period target, exceeding the authorities’ own operating benchmarks for the reporting period.

National Bureau of Economic Research specifically for EconomyKZ.org

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