Some government services are set to be transferred to private entities. How much could tariffs increase?

At the meeting held on January 13, the committee on constitutional legislation of the Jogorku Kenesh reviewed a draft law proposing to outsource part of the state services.

In the explanatory note, it is mentioned that within the framework of the state order, the republic and local budgets provide a significant number of services for free. However, budgetary financial constraints do not always allow for all those who wish to be covered.

An example is legal services, which can be provided by private notaries instead of state bodies. Similarly, other services can also be transferred to private individuals and companies. This applies, for instance, to transportation services. The quality of the services provided will be monitored by the authorized bodies, and the list of such services and criteria for performers will be established by subordinate legislation.

According to experts, outsourcing services will allow entrepreneurs to enter the market and create new business opportunities. Thus, a service market is opened that was previously entirely under state control.

Deputy Minister Choro Seitov noted that certain criteria will be established for private performers, such as the presence of qualifications and suitable premises. All these requirements will be fixed in subordinate legislation.

Deputy Kubanychbek Samakov pointed out that the law already provides for the possibility of providing state services by private individuals.

He asked the question: "What is the difference if such norms are already in effect?"

Seitov replied that the draft law clarifies existing norms, allowing part of long-term or labor-intensive services to be transferred to private organizations to relieve state bodies. If an applicant wants to receive a service faster, they can turn to a private performer who will carry out the necessary part of the work.

The deputy expressed concern that this could lead to an increase in service prices, as private companies aim for profit.

Seitov explained that the draft law introduces changes to the tariffs of state and private services. According to him, state bodies report that they provide services at cost price, which does not cover their expenses.

The deputy clarified: "So, are we really expecting an increase in tariffs for state services?"

To this, Seitov replied that the new tariffs will include expenses for improving the material and technical base.

The deputy remarked: "Shouldn't these improvements fall on the shoulders of citizens? People already complain about the difficulties in obtaining state services, and now there will be an increase in prices as well."

He also pointed out that under the draft law, control over private performers will be carried out by state bodies.

Samakov added: "I don't understand why services are being taken away from state bodies and outsourced if the state continues to check the performers and raise tariffs on services."
Seitov explained that the change in tariffs for state services is aimed at improving the quality and increasing the volume of services provided.

He noted that the draft law states that the cost of services should not exceed the cost price, but at the same time, an increase in prices is anticipated to improve the material and technical base. "This is a contradiction," Samakov pointed out.

Seitov assured that the deputy's comments would be taken into account.

He added that state bodies regularly review tariffs, as the cost of services has not changed for 10-15 years, despite rising prices in life. Therefore, revising tariffs is a necessity.