Iskakova Z.D., D.E. professor

Aubakirova G.T., C.F., the senior lecturer

Spataeva Anel, Karaganda Economic

University оf Kazpotrebsoyuz

Stability factors of the financial system in Kazakhstan at the up-to-date stage.

Nowadays the financial system of Kazakhstan is the representsion of forms and methods of a particular usage of finances in economics.

There is a huge responsibility to the country's financial establishment serving the money circulation, executing credit relations, the fiscal policy and tin allocation of financial resources.

For Kazakhstan one of the most important tendencies in development from the moment of getting independence is the formation of a stable financial system namely in terms of market economics and gradual integration in world's economics. One of the long-term priorities of the Kazakhstan development Strategy till 2003 is the economic growth based on stably developing market economics with a high rate of foreign investments which the society demands effective results and social efficiency from.

To date considerable results in Kazakhstan's development are obvious. The guide line to the stability, population's trust support, the increasing of the financial organizations' firmness rate are the concrete objectives connected to a quantity of factors depending on legal regulations, transparent actions of the financial and other relations, participants and a reasonable financial policy.

The largest financial system blocks of the Republic of Kazakhstan including centralized finances (national finances), decentralized finances (finances of economy subjects) and finances of housekeeping (population) form total financial resources. The weight in sufficiency and needs satisfaction in the production process and social prosperity falls on them.

Namely national financial resources (through the state budge:, state credit, special out of budget state funds) and financial resources of economy subjects as unified elements of the state financial system define the function and role of financial resources in the production process. In this case, housekeeping (population) finances which as the result first blocks development of the financial system only complement the fullness and stability of financial resources in the society.

Only the state budget as the largest centralized country's currency fund used to expand manufacturing and satisfaction of social needs represents the main instrument for distribution and re-distribution of the social product value according to the social essence. The condition of the country's state budget depends on the situation in economics at this moment, as well as on the influence of the outward factors which are virtually always negative.

If to pay attention, for Kazakhstan the last year 2007 became one more confident step forward on the way to the overall economic, social and political modernization of the country, despite the general deceleration of world's economic growth and instability rate on the world's financial markets. In 2007 according to the estimate of world's currency reserves, the grown of world's economics made up 5.0%, at the same time as the result of the uncertainty increase in world's capital and goods markets, the prognosis of world's economics was defined by experts more exactly thrice, though in 2006 the situation in world's economics was more favorable than in 2007, and the growth of world's economics was almost the same - 4.9%. In 2007 world's prices for foodstuffs rose and made up 18.2% on average (mainly - grain-crops, wheat, and seed-oil).

Besides, from the beginning of 2007 the stable tendency of the rise in world's prices for petroleum was concerned with the high demand rate for it. the low rate of petroleum production and manufacture. In 2007 the average price for petroleum of Brent brand made up $72 for a barrel and rose by 46.8% on average, whereas the world price for petroleum rose by 4.9% in 2006 in comparison with 2005. The increase proved to be true with lead (50.4%), gold (27.5%). The decrease of the construction work by 32.2% in October led to a considerable decrease of the industry growth rates in general in comparison with 2006: from 28.6Ь to 15.3%» in 2007, and the deceleration of the investment activity became apparent most neatly in the second half of the year and in general for this year the volume of investments in economics increased by 8.2%, while in 2006 the increase made up 11.1%.

In 2007 the rate of GNP growth in a real expression also slowed down and summed up a lower rate than last year - 8.5%» versus 10.7% in 2006.

In 2007 the annual inflation demonstrated multidirectional tendencies. In the second half of the year 2007 the inflationary processes in the economics of Kazakhstan reinforced. Only in September-December of 2007 the rise in price reached 11.7%. At the same time the increase of inflation that time ^as caused by the rise in price for foodstuffs first of all. In general according to the total of 2007 the annual rate of inflation reached its maximum point for the last 7 years - 18.8% (in 2006 - 8.4%) and the average annual inflation made up 10.8%.

Despite the positiveness of increasing population's income rate process in Kazakhstan, because of the lack of efficient means to influence the inflation, unreadiness of the means to control the shadow economy and speculative transfer of financial resources, there is an impression that a negative influence on the inflation shows a considerable rise in the aggregate demand supported by the income increase. The rise in demand not supported by corresponding supply causes a disbalance in the market and puts pressure upon the consumer price.

In January-November of 2007, in comparison with the corresponding period in 2006, there was a 29.6% increase of population's incomes in a nominal expression and 17.8% increase in a real expression. As the result the growth of the retail turnover in 2007 versus 2006 made up 10.0%. In 2007 the tendency to advance of average monthly salary growth rates over the rites of labor productivity growth continued. In January-September of 2007 the salary growth made up 19.5%) in nominal expression, and the labor productivity got only 6.6% more according to the estimate. In our opinion, the intensity of tit inflationary process is in the real sector of economics because of which the rise in price plays an important role in the formation of the inflation in the consumer market. In 2007 the prices for the industrial manufacturers rose by 31.9%, whereas in. 2006 the rise reached 14.6%. The prices for energy resources produced by Kazakhstani enterprises rose by 45.8% in 2007 (in 2006 - by 10.0%). At the same time the prices for oil rose by 52.3% (versus 11.0% in 2006), for gas condense ;e - 47.0%.

Nevertheless, it's impossible not to note positively those system measures taken to modernize economics, as well as the measures of efficient response admitted by the Government conjointly with the National Bank of the Republic of Kazakhstan and the Regulation and supervision over the financial market and financial organizations agency in IV quarter of 2007. They allowed to allay the outward shocks .and to save the stable economic development in the past year. The factors of the fiscal policy and tough monetary policy in the aggregate solved complicated problems in the second half of the year 2007. These measures favored the state budget so that without taking loan receipts into account it made up 2887.8 mlrd tenge and did for 100.1% to the annual plan (2880.3 mlrd tenge) The rates of income growth of the state including republican and local budgets i1 comparison with 2006 made up correspondingly 123.5%, 120.3% and 148.5%. Considerable reserves of the country were formed, and they made up about US: $40.0 mlrd including the resources of the National Fund. Namely the availability of the savings played a key role in the support of the stability of the county's financial system. The asset of the National Fund reached 2 trln 795 mlrd tengi. During the year 2007 the receipt of 1200.5 mlrd tenge was transferred. It included direct taxes from the enterprises of the oil sector - 1037.9 mlrd tenge.

In 2007 the state budget was fulfilled with the profit of 215.3 mlrd tenge, and in 2006 it was fulfilled with the profit of 81.6 mlrd tenge.

Among the expenses on the social sphere the education financing increased by about 27.4%, the social welfare and social help by 223%, health service by 20.4%).

During the recent years there has been a forward increase of republic budget expenses on a state support of the republic agrarian sector. In 2006 1350.0 mln tenge of the republican budget were provided for solving rural problems, while in 2007 - 1569.1 mln tenge.

From 2000 the expenses of the state budget on education, health service and social welfare increased 5 times more.

In annual address of the President to the people of Kazakhs :i л which are always based on the analysis of the achieved goals and perspectives с f the coming future, the necessity of the consistent modernization and the supply с f stable rates of Kazakhstan's economics growth are also marked. The key priorities of the economic policy are noted; new objectives are stated including Kazakhstan's financial system, the attention to the necessity to form efficient means of the system and effective response of the country to the threats of financial instability and strengthening of the world's market trust to Kazakhstan's economics. Namely the economy of the financial resources, their safety and effective mastering in rigid accordance with purposes were and stay important criteria of tit stability of Kazakhstan's financial system.