By Raushan Nurshayeva
ASTANA, Nov 25 (Reuters) - Kazakhstan nearly halved its three-year economic growth range to below three percent on Tuesday, blaming weaker prices for its oil and metals exports.
The global financial crisis has ended years of double-digit economic expansion after Kazakhstan took a heavy beating from falling oil prices and plummeting investor interest in higher-risk emerging assets.
Presenting changes to the 2009-2011 budget to the upper house of parliament, Economy Minister Bakhyt Sultanov said the government projected growth of 2.7-4.1 percent in each of these years from the previous official forecast of 5.0-7.0 percent.
"Kazakhstan like other countries has felt the negative impact of external factors," he said. "Global prices for oil and metals -- Kazakhstan's main export items -- are falling."
Prime Minister Karim Masimov previously said the economy was likely to expand three percent next year compared with this year's planned five percent. Last year GDP grew 9.7 percent.
The budget changes have to be approved by parliament to come into effect, a procedure viewed largely as a formality.
The budget sees a 2009 deficit ratio to the gross domestic product at 3.4 percent in 2009 compared to 3.0 percent announced earlier -- bigger than this year's deficit of 2.1 percent.
Next year's budget is based on an average oil price of $40 a barrel -- a sharp correction from the previous estimate of $60.
Kazakhstan, 60 percent of its economy reliant on oil exports, has announced a $21 billion rescue package, equivalent to roughly 20 percent of the economy, to help its fledgling banking sector battle the credit crisis.
Sultanov said 2009 budget spending, set at 3.4 trillion tenge ($28.3 billion) against 2.9 trillion tenge in revenues, would have to be cut further to adapt to tighter conditions.
He said spending would have to be restricted "until better times" in areas such as construction of new state buildings, as well as defence and space programmes.
With an oil price of $40 the national oil fund -- a $26 billion rainy-day stash currently being tapped to finance the rescue package -- should receive about $7.9 billion in 2009. (Writing by Maria Golovnina; editing by Tony Austin) (maria.golovnina@reuters.com; +7 727 250 85 00; Reuters Messaging: maria.golovnina.reuters.com@reuters.net))