Tastemirova Zh.A., Kaparova B.T.
A.Baitursynov Kostanai State University., Kazakhstan
State Administration of inter-budgetary
relations in Kazakhstan
Mechanism of budgetary and financial decentralization of regionalism in the
scientific interpretation is based on achieving a reasonable compromise between
the interests of the state , the public and businesses. This agreement can be
achieved only when the formation of economic regions. The economic potential of
the country is not formed at the level of the central government , and is
created on each of the country.
Strengthening of statehood , the welfare of the citizens exercise involves
vigorous policy towards the region . At the same time , transfer and competence
spending authority must be accompanied by responsibility of the local
authorities of all levels for the results of decisions and effective financial
control measures .
Interbudgetary regionalism - a system of economic relations between the
participants of the budget process , aimed at creating conditions for
self-development areas according to interests of budgetary relations . These
relations have a clear vector - creating conditions for self-development areas
of the budget process are the bodies of state power and administration at
different levels. Thereby avoiding pretentiousness temper autonomy of local
budgets , as tasks, which in modern conditions it is difficult to solve. The
definition emphasizes the need to take account of interests of budgetary
relations , which include not only government agencies but mostly the private
sector - public , business structures .
Issues of real autonomy of local budgets require an integrated approach .
There is significant to take into account a number of factors :
- Provision of local executive bodies profitable sources of budgets in
accordance with the spending powers ;
- Consideration of the interests of businesses and communities concerned ;
- Transparency of cash flow , transparency of information on education and
expenditures of local budgets ;
- Strengthening of control over the processes of formation and consumption
of local budgets.
Overview of formation of budgetary law regulating delineation of authority
and competence of the central government and local authorities in Kazakhstan
showed that the decentralization process is complicated due to the factors are
unstable macroeconomic , lower business activity of the business sector , the
fall of the needs of the population. Investigation in the post-crisis country's
budget system is aimed at creating conditions for equal access to public
services for all citizens, independently of residence. This suggests the
creation of conditions for the formation of entrepreneurship, growth of tax
revenues budgets of all levels , effective control of budget spending .
Management Evaluation of intergovernmental relations in Kazakhstan shows :
- The practice of budgetary alignment through the use of budgetary
subventions collectively justified because due to the need to help the
economically weak regions of the country ;
- The current methodology for calculating transfers transferred to local
budgets , requires its refinement in light of the outcome ;
- Used in the current time form of regulation of intergovernmental
relations generate dependency in some regions and deprive other areas of
serious shocks to the formation , thus increasing territorial differentiation ,
based on the redistribution of financial resources;
- Establishment of forms and methods of budgetary control should be made in
the direction of creating conditions for the establishment of private
initiative in the field, the empowerment of local executive bodies in the
sphere of taxation, becoming profitable alternative sources;
- Irrational system for allocating profits and costs between levels of
government and the current practice of subventions and withdrawals contributes
to high counter flows of budgetary funds.
There is a need to ensure the right of local authorities to adopt , within
the boundaries of law, independent decisions on the organization of the budget
process. Local authorities will not be fully interested in the effective
management of public finances, public sector restructuring and the creation of
favorable conditions for the formation of economic areas , not owning statutory
fiscal autonomy.
In modern conditions of implementation of the fiscal policy of the local
executive bodies is difficult because of the weakness profitable base of local
budgets . To achieve the objectives of the territorial fiscal policy in modern
conditions must be provided :
- Mechanisms to stimulate the interest of local executive bodies to
strengthen the profits of local budgets , creating incentives for the
establishment of business;
- The right of all independent decision authority and local government
decisions on the application of existing own financial sources;
- By fiscal levers to create conditions for the formation of balanced local
budgets;
- Subsequent establishment of monitoring mechanisms for targeted and
efficient use of local budgets.
In order to strengthen profitable base of local budgets , you need to
review the mechanism for calculating property taxes - land , property tax and
tax on vehicles . The review showed their share of local budgets is very small.
Consequently need to reduce the likelihood of benefits to increase rates .
There are significant reserves . Since in practice, foreign property taxes
bring huge profits to the local treasury, there property taxation carried at
market value, and we have - Assessment BTI. Low levels of property taxation in Kazakhstan
reduces incentives for its effective application , leads to different financial
violations . Low level of penalties also provides the basis for evasion of
these taxes.
Especially justified and economically feasible is to transfer the full
payment of VAT on domestic goods to local budgets . This type of tax is a small
part of the profits of the republican budget (11.6%) and has a particularly
uniform division of the tax base. Besides , VAT revenues depend on the level of
business formation , making incentives for local executive bodies in the
creation of a favorable business climate .
In order to further improve inter-budgetary relations of the Republic of
Kazakhstan in the priority should be to implement the following activities:
- Justified consolidate taxes between levels of government , thereby
ensuring all levels of government finances pleased if full provision for their
assigned public services;
- Regions interested in establishing its tax capacity , reducing dependence
on transfers from the national budget (regulated revenues quotas) .
- Provide in the budget law compensatory mechanism proportional reduction
budget withdrawals in case of declining tax revenues caused by changes in the
socio- economic formation regions.
Develop standard outcome confirms the need of decentralization and tax
sharing their profits with a distinct binding between levels of government ,
making the introduction of background in local government self-financing
mechanisms , in which the education cost of each link is put in direct
connectivity from earned income funds; statutory minimum budget of the regions
with regard to economic , social and climatic factors .
In the method of determination of targeted transfers on the development of
public institutions to consider not only economic but also social and specific
data regions with special attention should be paid to increasing the mutual
responsibility of members of intergovernmental relations to each other , to the
people , institutions and organizations .