Kazakhstan to give money to children from natural resources income
The government of Kazakhstan is starting a new project called “National Fund for Children”. The project will create accounts for all children and give them some money in dollars every year from when they are born until they are 18. The money will come from the state’s earnings from natural resources. Vice Finance Minister Dauren Temirbekov has stated that the National Bank will calculate 50 per cent of investment income, taking into account the average profitability of the National Fund for previous years.
The project will begin in 2024. It will cover all children who are citizens of Kazakhstan: both new babies and those who are already up to 17 years old. The accounts will be opened automatically and can be checked online or on an app. Every year on January 1, the National Fund of Kazakhstan, which gets money from natural resources, will add some money to the accounts of children. They will share 50% of the fund’s annual investment income among them. The amount will change every year based on how well the fund did in previous years – using an average of five years, and for the first payment, using an average of 18 years. So, in the first year, a child might get 100-150 dollars, but every year, the amount will increase with interest. The authorities estimate that by the time a child is 18, they could have about 3500 dollars. The money will be kept and given in dollars. They will not be taxed. Children can use the money from their accounts when they turn 18. They can use it for education, even outside Kazakhstan, or for buying a house – only in Kazakhstan.
The Vice Minister of Finance reminded that the project participants will be children who are citizens of the Republic of Kazakhstan.