A 341 Billion Debt Pit: Mazhilis Deputy Criticizes Farmer Subsidy Situation

Kazakhstan's agricultural sector is trapped in massive debt. As of October 1, 341 billion tenge in subsidies have not been paid to farmers. The situation is critical. Of this significant sum, 136.5 billion is "old" debt carried over from previous years.

Mazhilis deputy Marhabat Zhaiymbetov announced these alarming statistics during a Mazhilis session, addressing an inquiry directly to Kazakhstan's Prime Minister Olzhas Bektenov.

The problem is not new. According to Zhaiymbetov, debts to agricultural producers have been actively accumulating since 2023. Farmers, as the deputy emphasized, have fulfilled their part of the deal: "they sowed, harvested, and paid off their loans." They met all state program requirements. Now the ball is in the state's court, which is openly delaying its obligations.

Zhaiymbetov called the untimely financing a "chronic illness." The numbers confirm this. For example, of the 87.8 billion tenge planned for 2025, only 11.6 billion has reached farmers. A similar picture exists with the state reserve: of the 80 billion tenge allocated, just under half—36.3 billion tenge—has been utilized.

The root of the problem, according to the deputy, lies in a 2023 decision: subsidy expenses were "pushed down" to local budgets. But many regions simply do not have the money. Most of them are subsidized (dotational) and are unable to cover the payments.

This triggers a vicious cycle: current-year funds are used to patch holes from previous years, while new applications remain unfunded. The deputy noted that at a meeting of the Mazhilis budget commission, it was acknowledged that the same problem exists in other sectors. "An unresolved issue cannot be shifted to the local budget," he stated.
But the debts are only half the problem. No less acute, according to Zhaiymbetov, is the issue of subsidizing loan interest rates. On paper, farmers were promised a preferential 6%. The reality? They are forced to service loans at 22% annual interest, or even higher.

This "additional burden," as the deputy called it, is hitting businesses hard. It provokes cash flow gaps, which, in turn, lead to wage delays for employees and growing tax debts to the budget.

It's not just the agricultural enterprises that are suffering. A farmer, squeezed by bank interest rates, cannot pay a fair price for raw materials purchased from private households. This impacts the incomes of all rural residents. "That is, the delay in subsidies undermines the reputation of the state policy to improve the well-being of the rural population," the deputy concluded.

He insists the problem requires immediate intervention, with a clear definition of responsible parties, deadlines, and, most importantly, sources of funding.

In his inquiry, Marhabat Zhaiymbetov put forward four specific proposals to the government:
* Determine and, importantly, publish a clear schedule for repaying all debts on subsidies and compensations, broken down by region.
* Provide Mazhilis deputies with comprehensive information on the 2023–2025 debts—broken down by regions, types of subsidies, and specific payment deadlines.
* Before the new budget is approved, allocate funds in the government reserve to fully cover all outstanding debts from previous years.
* Ensure farmers receive transparent and reliable information about how the problem is being solved and when they will see their money.