Budget execution by function once again highlights the priorities that the Government has pursued over the years: debt servicing remains a major obligation, consistently absorbing more than half of total State Budget (OGE) expenditure through interest payments, debt repayments, and related commissions. As a result, relatively little remains available for other sectors.
In just one quarter, the Government has already executed 48% of its annual Defense budget, spending Kz 596.4 billion out of the Kz 1.2 trillion allocated for 2026. Meanwhile, expenditure on financial obligations related to domestic and external public debt reached 32% of the annual allocation, equivalent to nearly Kz 3.9 trillion out of the Kz 15.5 trillion projected in the 2026 State Budget (OGE), according to calculations by Expansão based on the first-quarter budget execution report.
In contrast, spending on key social sectors such as Education, Health, and Social Protection has been significantly restrained, maintaining a long-standing pattern of budget overruns in the defense sector while schools and hospitals continue to experience low execution rates.
Budget execution by function once again reflects the Government’s long-standing policy choices. Debt servicing obligations continue to consume a substantial share of public spending, directing much of the State Budget toward interest payments, debt amortization, and commissions associated with both domestic and foreign debt.
Once debt obligations are set aside, the Government must still meet basic commitments such as paying public sector salaries and ensuring the day-to-day functioning of the state, which depends on expenditures for goods, services, and other operational needs.
With debt servicing costs remaining so high, the Government would struggle to meet its obligations without continued financing. This is particularly true because there has been limited emphasis on fiscal tightening—namely reducing public expenditure—while declining oil production continues to erode tax revenues generated from crude exports.
Source: Expansão
