According to the Ministry of Finance, as of September 1, 2022, there were over 28.7 trillion tenge in the National Fund. However, the return was negative and amounted to 634.9 billion tenge, whereas, at the beginning of 2022, the amount of funds exceeded 28 trillion tenge with investment return of 1.6 trillion tenge.
As of beginning of 2021, 28.2 trillion tenge were in the National Fund, and the investment return was 4.1 trillion tenge. For the same period in 2020, the amount of funds exceeded 27 trillion tenge with investment return of almost 1.2 trillion tenge.
Let us remind you that in his message, the President Kassym-Jomart Tokayev proposed to allocate 50% of the National Fund’s annual investment return to special savings accounts for children until they reach 18 years of age.
According to Ramazan Dossov, an analyst of the Financial Institutions Association of Kazakhstan, there are many countries in the world with successful experience in measures for the fair distribution of return on sales of natural resources. For example, when a child is born in the UAE, Kuwait and Qatar, a savings account is automatically opened for them, to which the payments are credited depending on oil prices at the moment of their birth.
By legal age of the deposit owner, such accounts usually accumulate amounts covering the cost of a four-year education not only in the depositor's homeland but at prestigious universities abroad as well.
“In retrospect, from payments of 50% of the actual investment return of the National Fund, each Kazakhstani born in the period from 2000 to 2004 could receive an average of 1.9 million tenge by the age of 18 (investment return from the National Fund’s management with exchange rate revaluation for 2000-2021 was 25.5 trillion tenge, and the number of children in the country grew over this period from 4.96 million to 5.96 million) without interest. If we add capitalization of interest at a rate of 10%, the average amount will increase to 2.4 million tenge. This implies the importance that these accounts be accumulative,” Dossov summed up.
Photos are from open sources.