According to the Ministry of Finance of Kazakhstan, budget revenues and transfers totalled KZT 138,732.7m (US $1.8bn) in the first six months of 1998. This was 84.9% of the expected amount and 16.9% of the GDP. State budget expenditures amounted to KZT 164,226.6m (US $2.1bn) or 81.4% of the target. As of July 1, the budget deficit was KZT 28,832m (US $373m). The Ministry of Finance has determined a number of steps to help implement the state budget in the second half of the year. These include, among others, improving tax collection procedures and gaining more control over budget revenues from privatisation. Plus, the Ministry of Finance hopes to finalise the legalities for issuing medium-term state securities with maturities of 3 and 5 years. (Panorama)

The construction of an oil pipeline from Western Kazakhstan to China may start ahead of schedule, said the vice president of Kazakhtransoil, Kairgeldy Kabyldin. According to him, a feasibility study may take six to seven months instead of nine as thought before.

Kazakhstan and China signed an agreement to build a 3,000 km oil pipeline last September. The cost of the project will be US $3.5bn. According to the terms of the agreement, the pipeline must be built within 60 months of the signing of the agreement. (Reuters)