Economic science/Financial Relations

Kapanova Sholpan Amanzholovna

senior instructor of the “Chair of Finances”of Kyzylorda State Univercity after Korkyt Ata, Kazakhstan

An financing order of the work of the Centres of Public Services

The centre of Public service was solemntly opened on the twentieth of December in 2006 on the base of an assignment of the President of the Republic of Kazahstan, which was pointed out in his message ‘Kazakhstan on the way of economic, social and political fast renovation’ to the people of Kazakhstan. It is important to mention, the above mentioned Centre works by principle of ‘the one window’.

A building of the Centre is like a many-storeyed, the most beautiful and magnificent palace with blue dome on the top, situated on the bank of the Syrdaria river. An entrance of the building is coated with granite and surrounded by slabs and there is a two-roomed boiler-house on the territory of it.

The building’s total area is 2745 sq.km. and there is an awaiting hall which is surrounded by marble of 14000 sq.km area right at the entrance of the building.

The main goal of Centre is to serve people a quality service as it is pointed out in the message of a head of the state. Every officer of the Centre realizes that the cardinal principles of the Constitution is to achieve an economic development which follows people’s welfare. An opening of the Centre of Public Service is a proof of it.

There are many conditions for people at the Centre and it has been working at its level till nowadays.

There are 39 windows here, 26 of them are for acceptance of the citizens documents, 9 for documents return, and 2 windows are just for serving the invalids and veterans, the serving banks, take 3 windows and 111 officers work on several branches.

There are also places of relaxing, soft furniture and billboards with information on documents filling samples, bank pay desks, photographer, notarius and photocopies, canteen and newspaper boxes to serve the people. There are ATMs, phone boxes, TV set and air conditioners for people’s convenience.

A system of ‘electronic turn’ is very important for serving people a peculiar service of ‘One window’ principle and also the Centre is totally supplied with video control. The Centre serves the people on 2 shifts and without breaks.

A plenty of measures have been taken for improving the state service for people through the Public Service Centre.

It is necessary to point out the officers accepting documents from citizens, pass tests with an aim of rising their professional qualifications.

Also the seminars are held with the participation of specialists on such branches as: state registration of rights for real estate, information service, registration and documentation of citizens, registration of civil status acts, state registration of juridical persons.

Trainings directed to develop computer literacy level are often held with an aim of economizing time while accepting documents from citizens and visa versa.

An weekly analysis is being held on documents circulation between plenipotentiary organs and the Centre of Public Service on every branches. A daily control is held on documents circulation with an aim of not making a harm the citizens rights and cases of violation of dates demands indicated in laws of documents execution were studied.

Except a main service a spiritual food is also given at the Centre of Public Service.

For instance, exhibitions of national arts masterpieces, of local painters and sculptural arts masters were held. Measures connected with a national holiday of the Muslim commune, a holiday of Nauryz were held. The national traditions and customs, a concert of singers and different competitions were held.

The collective of the Centre also holds charity measures. They congratulated the Second World War veterans and presented gifts on the 9^th of May.

A holiday named ‘Let the Sun always be’ was held in honour of the Children’s Day on the 1^st of June. The children deprived from the parents aids and the invalid children were invited to that party. The plays were given for the children were given by the local theatre actors and a festive table was done. The children were gifted presents and the school was gifted a TV set.

The state budget means must be firstly directed to the economical structure reconstruction, financing of the complex aimed budget programs, rising of the scientific and technical potential, fastening of the social development and to protection of the socially weak parts of the population.

Expenses and taxes are the important means of the regulation and stimulation of the economics and investments and of rising the industry efficiency.

The social direction of the budget means is of great importance. The priorities of the social policy are the support of the socially weak parts of the population (pensioners, invalids, families with low income) and also support of the healthcare, education and culture.

Budget influences much the national economic branches and the non-industrial establishments in the process of financial planning. A budget is closely connected with all the enterprises and establishments by making the state monetary fund and being a main financial plan. The importance of the budget control is increasing in organizing and using the resources during the transition into market relations.

The state organs must have their own monetary bases for executing functions. The budget lines are formed for maintaining the authoritive functions, the legislative branch, the social sphere, economy of the every region. Definite monetary relations appear during the formation of incomes and expenses of separate kinds of the budget and during its equation. All of these elements are the principles of organization and formation of budget system and its links correlations and organizing objects comprise a budget structure.

In different countries of a world the budget structure differs owing to its state structure, regional and administrative unit, and economical development and to other peculiarities.

Great changes equating with a century took place in social and political structure of Kazakhstan after its getting independence. One of these changes is the budget structure reform, which is a gold pillar of our Economical Independence.

We need a separate social policy and microeconomical stability after getting independence. And here we also need the reform forming price and price stability, real estate development and a prosperity of the financial market.

Head of the state N.A.Nazarbayev gave a conclusive estimation for the period after independence in his message for the people. A necessity of realizing a seven-staged program of ‘Kazakhstan-2030’ on the base of experience is pointed out. An economical prosperity which is based upon the open market economics is one of the most important grades in development of our republic. Having estimated the light and dark sides of the economical reforms our Head of state concluded the following: ‘We will not be considered as a stable and strong state if we don’t protect and multiply our treasury’. And he has been stating it since the first day of our Independence.

As for the expenses accounts and deduction of the local budget, then expense operations by accounts of local budget are done on the range of monetary free remainders. Cash is not given through the local accounts, but just in the case if spare money was transferred into the local budget income.

The unused remainders of finances by the local budget income accounts are transferred into the income accounts of the appointed finance organs on the 31^st of December. The limits of the state enterprises rendered by the local budget accounts expire their dates due to its being not used till the 1^st of January of a new financial year. All the state establishment accomplish their budget accounts operations in the range of the permitted limit. The accounts operations expenses are accounted by debits and reconstruction by credits.

The budget incomes and expenses are indicated according to the ministries and departments in departmental classification.

The following demands are required from the budget classification:

1. It must be exact and clear.

2. All the incomes and expenses must be covered.

3. A connection between the state budget and society must be supplied.

The Republic of Kazakhstan entered changes into the budget incomes and expenses classification and it is approved in its new version now.

After being approved by the Maslikhats the local budget incomes and expenses list is located in the regional financial organs by their addresses and also sent to the regional Treasury organs as an electronic file or calculated in thousand tenges and sent in papers by budget classification codes. After getting the approved local, budget incomes and expenses list from the regional financial organs the Treasury enters it into the automated data base of a financier.

The expenses list is composed by 14 symbols of the expenses classification: functional group (1 symbol), small function (2 symbols), state establishment – program administrator (3 symbols), program (4 symbols), small program (5 symbols), peculiarity (6 symbols).

The incomes list is composed by 6 symbols of the incomes classification: category (1 symbol), class (2 symbols), subclass (1 symbol), peculiarity (1 symbol).

The local budget incomes and expenses list is examined in such a way:

· an accuracy of budget classification in list;

· the incomes list sum must coincide with expenses list final sum;

· the final sum must coincide with the personal sum.

A possibility of temporary entering of expenses for 1-2 months must be given during expenses list data entering.

If a temporary list was entered before, then while entering the list for a year the financing of the limits rendered by planned sum will be controlled: for instance, it must not be less than the financed limit by the planned sum of January. The regional Treasury will be able to control the lessening of the planned sum by months: only the remaining sum of the unused plan can be lessened. It is possible to lessen the remainder of unused sum by plan after lessening the plan for a year (plan-obligations-financing). It is possible to enter the income list before a month or two of the annual budget specification during the income list data entering.

To insert changes to the income and expense lists is possible through blanks №№ 203,303 by the certification of financial organs. The numerations of certificates are done by financial organs. The regional Treasury deals with inserting of certificates. Certificates on changes of expenses are formed in the following cases: changing expenses from one peculiarity into another or from one month into another by the request of state establishments.

In the case if a program or an additional program transfers from one into another; the local authoritative organ’s resolution by reserves.

Certificates on changes of incomes are formed in the following cases:

· if changes of expenses violated monthly (annual) balance:

· if the norms of income installation changed;

· if there were changes in administrative and regional divisions.

A control is done to the monthly or annual balance of the incomes and expenses list when the changes are inserted into the list. The certificate about changes or expenses list is controlled:

· changes of the expenses list for a year;

· during re-installation of the planned sum of expenses between program, subprogram and peculiarities of the budget classification taking into consideration the given financial permission;

· the planned sum of the peculiarity expense at the expense of other expenses;

· while increasing plans on the state establishment expenses at expense of reserve fund of the local authoritative organ without changes in the planned sum for a year;

· the sum which is for change by its economical classification peculiarity of expense is defined by this scheme: defined budget is rendered financing;

· in a range of reduction of unused remainders of the planned sum in months (plan-financing);

· in a range of reduction of unused remainders of the planned sum in a year (plan-obligation-financing).

We have compared the assets planned balance execution with the assets actual balance execution. Here we can see that all the assets have grown during their execution. Exactly, assets have grown till 51,8 per cents, non-material assets have grown till 10,7 per cents, materials till 316,9 per cents, quickly exhausting and cheap things have grown till 17 per cents. We can see a good development of the establishment which is just a year.

Table 1.

Execution balance of the Public Service Centre financing plan (by assets)

tenge

Assets	Plan		Execution		Changes (+,-) %
	sum	%	sum	%
Assets	46423672	92,3	70496739	84,2	51,8
Non-material assets	1909654	3,8	2114154	2,5	10,7
Materials	1706455	3,4	7114876	8,5	316,9
Cheap and quickly exhausting things	233580	0,5	4030913	4,8	17 times
Total	50273361	100	8356682	100	66,6

Sources: Accounts of the Public Service Centre for 2007

We can see growth of the fact till 66,6 per cents compared with the plan. Here the article of the state establishment expenses and other measures financing at the expense of budget have grown for 41 times, the funds in assets till 26, 3 per cents, assets exhaustion till 167, 3 per cents and exhaustion of material assets till 111,0 per cents. The fact is more than the plan in establishment.

Table 2.

Execution balance of the Public Service Centre financing plan (by liabilities)

tenge

Assets	Plan		Execution		Changes (+, -) %
	sum	%	sum	%
Financing of the state establishment expenses and other measures at the expense of budget	1706455	3,4	7114876	8,5	41 times
Funds in assets	40052417	79,7	50584614	60,4	26,3
Exhaustion in assets	8089944	16,1	21623398	25,8	167,3
Exhaustion of non-material assets	190965	0,4	402881	0,5	111,0
Fund of cheap and quickly exhaustion things	233580	0,4	4030913	4,8	17 times
Total	50273361	100	83756682	100	66,6
Sources: Accounts of the Public Service Centre for 2007

The financing plan of the Kyzylorda Public Service Centre from budget composes 98805300 tenges for a year. If the financing plan for the accounting period on payments composed 98805300 tenges, then its execution composed 95244460 tenges. There were no remainders in the balance assets. 24073067 tenges were rendered at the expense of financing from budget in accounting period and they were spent for purchase of the following:

· vacuum cleaners, modems, UPS, dispensers, computers, TV sets, refrigerators;

· VAZ 21070 car;

· tables, metal bookcases, chairs, safes, radiophones, metal bars, doors, sofas, cases, arm-chairs, office tables, wardrobes, metal card indexes;

· computer accessories, office equipments and other equipments rendered by the Kyzylorda Oblast Department of Justice;

· TOYOTA HI-ACE bus rendered by he Kyzylorda Oblast Department of Justice;

· economical and industrial equipments from the above-mentioned department.

Literature:

1. Law of Republic of Kazakhstan “The Budget Code”//Egemen Kazakhstan, April 15^th, 2006

2. Regulation on the financial procedure about conducting accounting objects (seasonal and annual) and budget execution for the state establishments financed by state budget.//Collection of the Resolutuions of the President of RK and Government, April 8^th, 2006

3. Melnikov V.D., Ilyasov K.K. State Budget – Almaty, Economica, 1994, 285 pages

4. Melnikov V.D., Ilyasov K.K. Finances. Textbook – Almaty, 2001, 595 pages.

5. Kulpybayev S., Bayazitova Sh. A Financial System of Kazakhstan. Textbook – Almaty: Merey, 1999, 356 pages.

6. Brimbetova N. The regional aspects of Budget Policy.// Transit Economics, №№ 5-6, 2006