Kazakhstan's Atyrau Region Faces Budget Crisis Amid Rising National Transfers

Atyrau Region in Kazakhstan is facing a severe budget crisis. Lawmakers have raised concerns after a sharp increase in funds diverted from the region’s budget to the national level. The shortfall has left Atyrau struggling to meet its basic social obligations despite being a major contributor to the country’s revenue. Lawmakers from the Mazhilis Parliament representing Atyrau sent an official inquiry to the Prime Minister. They highlighted a 47% surge in the amount transferred from Atyrau’s budget to the republican budget in 2026, reaching 262.4 billion tenge. The inquiry also called for a revision of the methodology used to calculate the tax potential of donor regions like Atyrau.

Atyrau’s budget for the current year stands at 1.1455 trillion tenge, but revenue has already fallen short by 80 billion tenge in the first four months. Targeted transfers to the region have also dropped sharply, from 71 billion tenge in 2023 to just 13 billion in 2026. Last year, despite collecting more revenue than planned, Atyrau failed to spend 22.6 billion tenge, including 7.1 billion for construction and 6.7 billion for agriculture.

President Kassym-Jomart Tokayev held a phone briefing with Atyrau’s governor. He stressed the need for new approaches to regional development and instructed governors to strengthen their regions' economic potential. The president also emphasised addressing urgent social issues. The proposed revisions aim to ease Atyrau’s financial strain and improve its ability to fund essential services. Lawmakers are pushing for both a reduction in diverted funds and a fairer calculation of the region’s tax contributions. The president’s directives signal a broader effort to support economic stability in Atyrau.