During the analyzed period 2022-2023, the audit managed to cover 943 billion tenge, while financial violations were detected in the amount of 2 billion tenge, which is 0.2% of the total amount. This indicates the overall normal functioning of the system. Funds for financial violations have been restored.
Regarding the conclusion of the VAP on the inefficiency of 142 billion tenge of subsidies in the agro-industrial complex, we inform you that these funds were spent mainly on subsidizing the reduction in the cost of poultry meat production, subsidizing breeding work with KPC and MPC breeding stock and subsidizing insurance, which have proven their effectiveness.
In particular, on poultry meat: the auditors conclude that there is no economic effect of 34 billion tenge of subsidies allocated in 2022-2023 in the form of reducing the cost of products for the buyer and meeting the needs of the domestic market.
However, subsidies are given to reduce the cost of poultry meat production, that is, to increase competitiveness in the market occupied by imported suppliers. The presence of domestic producers in all retail chains and markets indicates an increasing share of Kazakhstani production and the effectiveness of subsidies. In 5 years, it was possible to reduce import dependence by 18%, the self-sufficiency of the domestic market is 73% by the end of 2023, and production growth in just one year (2022-2023) amounted to 16%. Moreover, Kazakhstanis began to consume less frozen chicken meat and more fresh chilled poultry meat. This year (according to the results of 9 months), Kazakhstan imported 10 thousand tons less poultry meat, and exported 10 thousand tons more. This indicates the progressive development of the industry and the strengthening of food security in Kazakhstan.
On breeding and breeding work with breeding stock of cattle and cattle: this type of subsidies over the years has led to an increase in the average live weight of livestock. For example, the average live weight of cattle is 380-400 kg, and in organized farms receiving subsidies it reaches 500+ kg. Before the introduction of subsidies, this figure was 240-260 kg, that is, the increase is obvious.
Over the years, this subsidy has created demand for breeding stock, that is, it provided an incentive for the development of an entire production chain in meat farming. Moreover, subsidies for breeding and breeding work are the most widespread type of state support, which is received by more than 20 thousand mainly small farms, the total amount of state support amounted to 66 billion tenge in 2022-2023.
Subsidies for insurance in the agricultural sector were called ineffective, since budget funds were in the account, and there is also a balance in the account. However, insurance subsidies are based on the principle of cost co-financing, not reimbursement. Therefore, the money must be in accounts and insurance companies are guided by them. Previously allocated funds (balances) were fully utilized in 2024. According to statistics, in 2024, about 0.5 million hectares were insured, while applications from farmers were 3 times more or 1.5 million hectares. In 2025, 10 billion tenge will be required to subsidize insurance premiums, which will provide insurance coverage for 20% of the total area of cultivated land.
Farmers who receive subsidies, also called "non-existent", are enterprises whose economic activity does not relate to entrepreneurial activity in the field of agriculture. According to the Rules of Subsidization, there is no requirement at the direction of the OKED. One of the main conditions for obtaining subsidies in the field of crop production is the availability of an agricultural land plot. That is, the presence of a land plot for agricultural purposes confirms that the agricultural enterprise has the right to engage in agricultural activities on these lands.
In cases where the absence of an agricultural land plot is imputed (for 40 subjects whose land plots do not belong to agricultural purposes), the information is not confirmed during reconciliation. According to the updated data of the Land Management Committee, agricultural land plots with the intended purpose "for farming" or "for commercial agriculture" are registered for the persons indicated in the audit report.
The subsidy mechanism in the agro-industrial complex is based on the principle of cost recovery. That is, the farmer first bears the costs, and then receives compensation in the form of subsidies.

Source : https://www.gov.kz/memleket/entities/moa/press/news/details/900903