It was formed on 21 January 1999, following Balgimbayev's resignation after the 1999 presidential election.

[1] However, he was reappointed by President Nursultan Nazarbayev, and the composition of the government cabinet was formed on the following day, 22 January 1999.

[2] His tenure faced various political challenges, leading to his resignation and subsequent reappointment.

[3][4] Balgimbayev's government faced a scandal after it had allowed to illegally sell MiG-21 aircraft to North Korea which led to rumors of Balgimbayev's possible resignation from the post.

[5] On 1 October 1999, he announced his resignation stating that the need for a government to tackle the economic crisis and as a result, Kassym-Jomart Tokayev who served as a deputy prime minister under Balgimbayev became the acting prime minister of the caretaker government until his confirmation on 12 October.