Cand.Econ.Sci. Kenzhebekova D. S.

Kostanaysky state university of A.Baytursynov,

Kazakhstan

MAIN WAYS AND METHODS OF THE BUDGETARY REGULATION OF ECONOMY OF THE REPUBLIC OF KAZAKHSTAN

 

The budgetary regulation is an ensuring deficit-free of budgets which are a part of the budgetary system of the state.

The purpose of the budgetary regulation - ensuring necessary interaction of all components of the budgetary system, balancing of each its element and all system as a whole this mechanism normally functioned and smoothly worked.

The structure of the budgetary system of the Republic of Kazakhstan is shown in figure 1.

 

Budgetary system

Republic of Kazakhstan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


                                                                            

 

Area budget (cities

regional value)
 
 

 

 

 


Figure 1. Budgetary system of the Republic of Kazakhstan

 

Ways of the budgetary regulation are:

1  .  distribution of expenses between separate types of the budgets entering into the budgetary system;

2  .  establishment of constantly specified income for each link of the budgetary system;

3 . definition of the income which are transferred from higher budgets in subordinate for balancing of the last (subvention);

4  .  interbudgetary grant (the budgetary loan);

5  .  interbudgetary crediting;

6  .  budgetary deduction;

7.óìåíüøåíèå the budgetary expenses, including sequestering (restriction – the special mechanism which provides a ban on an expenditure of means in certain limits which is imposed in cases when at an expenditure of the budget there is an excess of the established level of budget deficit, or receipts from profitable sources are reduced, as a result there is impossible a financing of the expenses in full provided by the budget).

For effective use of set of methods of impact on economy the knowledge of essence and specifics of each of them follows, to their objectively predetermined sopodchinennost. Depending on the chosen criteria there are some options of the corresponding classification. First of all, methods of direct and indirect influence differ.

 Methods of direct influence compel subjects of economy to make the decisions based not on an independent economic choice, and on solutions of the state (taxes, legal norms on depreciation charges, the budgetary procedures on the state investments). Direct methods have huge efficiency owing to expeditious achievement of economic result.

Methods of direct state influence are:

a) identification of strategic objectives of development of economy and their expression in indicative and other plans, target programs;

b) the state orders and contracts for deliveries of concrete types of production, performance of work, rendering services;

c)  state support of programs, orders and contracts;

d) standard criteria to quality and technology and production certification;

        e) legal and administrative restrictions and ban on release of some types of production, etc.;

e) licensing of operations on export and import of goods, that is the foreign trade operations.

Methods of direct state influence are:

a) identification of strategic objectives of development of economy and their expression in indicative and other plans, target programs;

b) the state orders and contracts for deliveries of concrete types of production, performance of work, rendering services;

c)  state support of programs, orders and contracts;

d) standard criteria to quality and technology and production certification;

e) legal and administrative restrictions and ban on release of some types of production, etc.;

f) licensing of operations on export and import of goods, that is the foreign trade operations.

The sphere of use of indirect regulation in process of development of market economy especially extends, narrowing possibilities of direct intervention of the state in processes of expanded reproduction.

At indirect influence the state forms only prerequisites to that at an independent choice subjects gravitated to those options, answering the purpose of a state policy (indirect taxes, duties, providing information).

Depending on the purpose of intervention of a measure of economic policy can be broken into actions which are directed on:

- activization of capital investments and balance restoration between savings and investments;

- preservation of probably maximum employment;

- price level preservation for ensuring profitability of the enterprises;

- stimulation of export and import of goods, capitals and labor.

Organizational and institutional methods.

It should be noted one more of classifications of methods of state regulation of economy. Criterion of approach - organizational and institutional. The specified list includes administrative, economic and institutional methods.

Administrative methods are a set of administrative levers which cover the actions connected with providing legal infrastructure. They share on measures of a ban, permission, coercion.

Economic measures are those measures of the state influence by means of which the certain conditions directing development of market processes to the course necessary to the state (in particular, on cumulative supply and demand, on level of centralization of the capital, on social and structural aspects of economy) are formed. To number of economic measures define financial and a monetary policy, programming and forecasting.

Institutional methods - system of the organizational issued actions. It actions which are connected with is rather long the existing phenomena, for example, "right institute", "property institute".

Statistical methods.

There is a variety of statistical methods, however in relation to regulation of great importance are: method of economic groups, extrapolation method, budgetary method (method of selective inspection of budgets of house farms).

The method of economic groups is everywhere used in state regulation.  Groups allow to divide difficult sets on the structure into the groups uniform in any essential sign.  The analysis is most often carried out by means of the structural, dynamic and structural and dynamic groups created on one sign or a combination several.

The method of extrapolation can be used mainly when developing initial forecasts, projections of the main directions, programs. Concreteness of this method of subjects is more, than it is less period concerning which the method is applied.

The budgetary method represents the analysis of budgets of house farms where statistical supervision over a population standard of living is conducted.

Materials of the analysis are a source for data acquisition about distribution and population differentiation on level of material well-being, consumption, cash expenditures, etc. They provide important information for definition of structure of consumer expenses in families of various structure, characterize population differentiation on level of located resources, give the chance to define dynamics of change of a consumer demand in the house farms which are in city and rural districts.

Materials of inspection of budgets are rather widely used by statistics in various economic calculations: consumer price indexes, the national income, at calculations of the real income of the population, etc.

Special methods: balance, program and target, standard.

Balance method - one of significant when determining economic proportions, coordinations of separate parts of the state plan in whole.

In the real conditions data of intersectoral balances can be used for development of forecasts of branch structure of economy, identification of a role of separate factors, for example, dependences of economy on power supply or the change in price for energy carriers, forecasting on the basis of regional balances of volumes of import and production export out of region limits, etc.

The standard method is used as independently, and in total with other methods, for example, together with a program and target method quantitative indices of the purposes and necessary resources for achievement of these become clear is more whole. The standard method is used for identification of requirements and possible resources when developing various balances, detection of the standard of current assets, norms of depreciation charges, etc. The method assumes finding of a ratio between various sizes (parameters) at which the best scale of predicted processes can be provided.

The program and target method can be applied at the solution of a specific problem which is characterized by the importance, by impossibility of the decision its other methods, appears on a joint of branches that demands special approach. For application of a program and target method important justification of a choice of problems. In a broad sense the program and target method represents use and deepening of an integrated approach to a solution.