Kazakhstan’s quasi-government sector is a key tool for supporting the country’s economic growth. State-owned organizations actively operate in various economic sectors and carry out government mandates. However, their financial stability raises many questions. The analysis of reports over the last three years, especially the 2023 National Report on the Management of State Assets and Quasi-Government Sector (approved by Government Resolution No. 909 on October 31, 2024), reveals not only achievements but also issues in state asset management. Financial indicators from 2021 to 2023 provide a complete picture of the dynamics of revenue, expenses, and net profit. These data show that the quasi-government sector is a battleground between profit and loss.
Organizations in the quasi-government sector under republican property showed relatively stable profit growth. In 2021 189 organizations ended the year with a net profit. Their total profit amounted to 1.8 trillion tenge. In 2022 the number of profitable organizations increased to 190. The profit also rose to 2.4 trillion tenge. In 2023 net profit reached 2.9 trillion tenge, despite the number of profitable organizations decreasing to 167. This trend shows an increase in revenue for large organizations, even as smaller ones faced difficulties. The significant profit growth indicates a gradual improvement in asset management within this category.
However not all republican property organizations showed positive results. In 2021 47 organizations ended the year with losses amounting to 76.2 billion tenge. In 2022 the number of loss-making organizations rose to 54 with total losses reaching 90.9 billion tenge. In 2023 there was a major turnaround. The number of loss-making organizations decreased to 26, and their losses reduced to 38 billion tenge. This trend suggests increased oversight and loss reduction efforts, reflecting the republican sector’s aim to minimize unprofitable projects and enhance financial efficiency.
Municipal property, in contrast to republican property, shows more unstable financial results. In 2021 341 municipal organizations generated 44.1 billion tenge in profit. However, by 2022 this profit had dropped to 27.4 billion tenge. In 2023 profit rebounded to 52.9 billion tenge, though the number of profitable organizations fell to 290. This volatility indicates less stable financial results in the municipal property sector, likely due to high dependence on local economic conditions and regional-level management decisions.
Additionally, losses among municipal organizations remain significant. In 2021 62 organizations incurred losses totaling 78.1 billion tenge. In 2022 the number of loss-making organizations sharply rose to 126, with total losses reaching a record 2.6 trillion tenge. In 2023 losses reduced to 107.6 billion tenge, and the number of loss-making organizations decreased to 92. This drastic increase followed by a decrease in losses highlights major fluctuations in municipal sector revenues and expenses, pointing to the need for strengthened financial control and optimized management in the regions.
A substantial part of quasi-government sector revenue comes from fulfilling government mandates. In 2021 revenue from government mandates for republican organizations totaled 230.2 billion tenge. In 2022 this figure grew to 263.7 billion tenge, reaching 436.5 billion tenge in 2023. This upward trend underscores the importance of government mandates in the revenue structure of the republican quasi-government sector, likely due to project expansion and increased funding for socially important goals.
Municipal organizations also receive significant revenue from government mandates, although they show less predictable dynamics. In 2021 municipal quasi-government organizations earned 128.5 billion tenge from government mandates. In 2022 their revenue decreased to 63.1 billion tenge, but in 2023 it sharply increased to 666.1 billion tenge. This variability may indicate changes in the state’s demand for municipal services or alterations in fund allocation for municipal needs.
Financial results of republican quasi-government organizations demonstrate consistent revenue growth over the last three years. In 2021 their revenue amounted to 16.0 trillion tenge, exceeding the planned 12.7 trillion tenge. In 2022 revenue grew to 20.9 trillion tenge, also surpassing the planned 19.5 trillion tenge. In 2023 revenue reached 22.2 trillion tenge, slightly above the planned 22.0 trillion tenge. These results indicate effective budget implementation and likely improvements in asset management.
The expenses of republican organizations also increased, though more controlled than revenue. In 2021 expenses amounted to 13.9 trillion tenge, exceeding the planned 11.9 trillion tenge. In 2022 expenses rose to 17.9 trillion tenge, slightly below the planned 17.5 trillion tenge. In 2023 expenses were 19.3 trillion tenge, remaining within the planned level. This trend demonstrates a focus on controlling expenses, which is essential amid revenue growth.
Municipal quasi-government organizations display unstable revenue and expense figures. In 2021 their revenue totaled 979.7 billion tenge, surpassing the planned 867.2 billion tenge. In 2022 revenue dropped to 779.6 billion tenge, though it remained above the planned 730.8 billion tenge. In 2023 municipal sector revenue sharply rose to 4.2 trillion tenge, significantly exceeding the planned 4.0 trillion tenge. This surge may result from increased service volumes provided by local quasi-government organizations or substantial growth in municipal contract costs.
The expenses of municipal organizations fluctuated similarly. In 2021 expenses amounted to 932.0 billion tenge, exceeding the planned 837.4 billion tenge. In 2022 expenses decreased to 746.4 billion tenge, remaining below the planned level. In 2023 expenses rose to 4.2 trillion tenge, surpassing the planned 3.9 trillion tenge. These data confirm the instability of financial indicators in the municipal sector and highlight the need for strengthened budgeting control.
Profit and loss in the quasi-government sector vary by organizational form. In 2023 joint-stock companies (JSCs) among republican organizations earned the highest profit — 2.7 trillion tenge. Limited liability partnerships (LLPs) generated a much smaller profit of 18.2 billion tenge, while republican state-owned enterprises (SOEs) earned 129.1 billion tenge. This indicates the leading role of JSCs in the financial results of the republican quasi-government sector.
Municipal organizations showed lower profitability compared to republican organizations. In 2023 JSCs in the municipal sector earned 17.2 billion tenge, LLPs — 5.1 billion tenge, and municipal SOEs — 30.6 billion tenge. These figures point to the weaker financial stability of municipal property and its smaller contribution to the sector’s overall profitability.
Despite positive results, several organizations remain loss-making. Among republican quasi-government entities 15 joint-stock companies incurred losses of 34.5 billion tenge in 2023, meanwhile LLPs lost 2.4 billion tenge. The municipal sector also experienced losses: JSCs lost 15.0 billion tenge, LLPs — 66.5 billion tenge, and municipal SOEs — 26.1 billion tenge. These data show that, despite overall improvements, many structures continue to face financial challenges, indicating the need for further management improvement.
