Kazakhstan slashes revenue forecast for 2009

ALMATY — Kazakhstan has slashed its revenue forecast for next year by $2.5 billion amid falling world oil prices, the country's Economy Minister said Tuesday.

The revision reflects an estimate for average world oil prices of $40 per barrel, down from the $50 per barrel previously used to calculate the budget, Bakhyt Sultanov told lawmakers.

The country is a large oil producer. Under the adjusted forecast, revenues in 2009 will be 1.9 trillion tenge ($15.75 billion), Sultanov said.

Kazakhstan's economy has slowed dramatically over the past year and has been battered by severe exposure to cheap foreign borrowing. Falling prices for oil are expected to further compound economic difficulties.

Prime Minister Karim Masimov said this week that government spending would be curbed in line with the shortfall in income from oil exports, but that the cut will not affect social welfare programs.

The government has forecast that gross domestic product growth will slow to 5 percent this year, from an average of 10 percent over the last five years.

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