Use of the budget for the social modernization

of the country

Maral Kozhakhmetova

Candidates degree in Economic sciences

E-mail: k-maralk70@mail.ru

Bazarbayev Assylbek

candidate of economic sciences,

Associated Professor of the Chair "Finance" Kazakh Economic University named after T.Ryskulov

050035, Almaty, Dzhandossov street,55

E-mail:assyl00@mail.ru

Berstembaeva Rysty

candidate of economic sciences,

L.Gumilyov Euorasian National University

Republic of Kazakhstan, Munaitpasov street,7

E-mail:rberstembaeva@gmail.com

The budget is the important means of realization by the state organizing functions, as well as the effective tool of management of economy. Application of the budget as the tool of management of economy is caused by the important characteristic features: it is valid the law; in it find direct reflection the programs which have been directed on progress of a social production, increase its efficiency, satisfaction of demands of members of a society.

Within the limits of the further functioning budgetary system the concept of new budgetary policy is developed. In it the basic conceptual approaches of formation and realization of budgetary policy are certain. Acceptance Strategy "Kazakhstan-2050": a new political rate of the taken place state will allow to provide stability of public finances, to raise productivity of deficit spending, including budgetary investments, to increase volume of private investments into economy, to raise an overall performance of local agencies, and to create favorable conditions for stable economic growth.

Introduction

Within 20 years of independence the firm basis of economic progress allowing to Kazakhstan already by 2016 to enter into group of the countries with a high level of incomes, having increased GDP per capita up to 15 thousand dollars.

The main tool of achievement of this objective is the Program of the forced industrially-innovative progress. A combination of economic transformations to social processes, construction of socially focused economy – the major element of strategy of reforms of the Leader of the nation of N.A.Nazarbaev, the long-term program « Kazakhstan – 2050 ».

In the Message of the President of Republic Kazakhstan – the Leader of the nation N.A.Nazarbaev to people of Kazakhstan about the budgetary policy it has been told, that a new principle of budgetary policy should become a principle of an expenditure and expenditure only within the limits of the possibilities of the budget and to reduce deficiency up to the greatest possible minimum.

Within the limits of realization of Strategy « Kazakhstan - 2050 »: a new political rate consisting the states » take necessary measures on perfection of budgetary system of Republic Kazakhstan. It is generally agreed, that efficiency and productivity of performance of function of the state, basically, depends on construction of an appropriating control system by public finances. To one of the main tasks of management of public finances - to assist stable and effective economic progress of the country by means of optimization of budgeting.

The role of the budget in the country's economy

The budget is a mandatory condition of functioning of any state for which monetary resources are necessary for performance of the functions. The most part of needs was satisfied due to a various sort of duties and deliveries from natural gathering. For a background of demands for resources, their specific direction separate cost proposals of expenses and incomes were made. The first attempt of formation of the uniform general of the cost proposal of incomes and incomes which receives the name the budget (from English budget - a bag of the treasurer, a bag with money), has been carried out in the end of XVII century in England.

The budget is the important means realisation the state organizing functions, as well as effective instrument managements of economy. Application of the budget as instrument managements of economy is caused important characteristics: it is valid the law; in it find direct reflection the programs which have been directed on progress of a social production, increase its efficiency, satisfaction of demands of members of the society. The budget has huge value that is connected with the legal form of use of budgetary attitudes.

The state budget as economic event is inherent in the various socioeconomic structures having a commodity way of manufacture. Its occurrence and progress is integrally connected with use of the states in the certain volumes of financial resources. Relations of production of this or that social order define a content of activity of the state and use of the budget as distributive mechanism. The budget is used as the major distributive tool by means of which the state accumulates the certain fraction of the national income and directs it on progress of economy, a science, social area and other objectives. It characterizes an intrinsic side of a finance administration social and economic processes, that is budgetary management, carried out by means of planning, formation, use of budgetary funds at all levels of economic system. [1, p. 86]

The budget is the important means of realization by the state organizing functions, as well as the effective tool of management of economy. Application of the budget as the tool of management of economy is caused by the important characteristic features: it is valid the law; in it find direct reflection the programs which have been directed on progress of a social production, increase of its efficiency, satisfaction of demands of members of a society.

Analysis the budget of Kazakhstan

Our country ranks among most dynamically developing economy of the world and gives two third of cumulative income of all Central Asia, representing only a quarter of its general population.

If in 1994 the volume of GDP on one person in Kazakhstan hardly exceeded 700 dollars in 2011 it has increased up to 11 thousand dollars.

Picture 1. Volume of a total internal product

Note: it is made by authors according to Ministry of Finance RK [2]

Kazakhstan – the social state, and it from year to year is confirmed with budgetary parameters: the fraction of expenses on social area in total amount of the state budget annually makes the order of 50 %, in absolute expression the given expenses have grown in 2012 in comparison with 2005 in 4 times.

At the same time scale and dynamics of occuring changes, both in the world, and in Kazakhstan, requires acceleration of social modernization. Social modernization assumes formation of the open society with dynamical social system. Such society has arisen and developed on the basis of market attitudes, the legal system adjusting the attitudes of proprietors, and democratic system, probably, not enough accomplished.

Standards of a life steadily raise, also as demands of our citizens and appropriating expectations on the further expansion of a role of the state in increase of their well-being raise. Now we have reached that level of development when speech should go not about the further escalating social expenses, and about their structural and ideological review: at conservation of the reached level of support of vulnerable layers of the population creation of conditions for increase of the main resource of the country – the human capital is necessary.

To provide a possibility for reception of qualitative formation, strengthening of health, increase of a cultural level, to provide employment and a possibility of professional growth, as well as to learn citizens to make good use of fruits of stability and well-being is and there is a high-priority problem on prospect.

The Government adhered to the given problem at formation of the republican budget for the forthcoming three-year period (2014-2016). Paces of growth of expenses of the social block have been stabilized in comparison with 2005-2012, thus all social obligations are kept. So, expenses of the republican budget on social area in 2013 will make 2 418,8 billion tenge, in 2014 – 2 612,8 billion tenge, in 2015 – 2 849,1 billion tenge.

The largest part of these means will be directed on social security and the social help to citizens of republic, including on performance of obligations of the state on payment of pensions and grants, granting of special social services to invalids, aged and to persons without the certain residence.

Expenditure on social block includes four functional groups, namely: education, health, social security and social assistance, culture, sports, tourism and information space.

Picture 2. Volume of a total internal product

Note: it is made by authors according to Ministry of Finance RK [2]

As a whole, expenses of the state budget on social area in 2011 have made 52 % from total amount of expenses or in absolute value 2947 billion tenge, in 2012 – 55 % from the general expenses or 3 144 billion tenge, in 2013 – 54 % from the general expenses or 3 261 billion tenge.

In social area the basic priority is performance of all before the accepted social obligations which have been directed on increase of well-being of citizens.

As a whole on social payments in the republican budget for 2011-2013 it is stipulated 3 381,9 billion tenge, (in 2011 – 1 015,2 billion tenge, in 2012 – 1 122,1 billion tenge, in 2013 – 1 244,6 billion tenge). Including in following directions:

- On payment of the state social benefits: in 2011 – 130,3 billion tenge, in 2012 – 146,4 billion tenge, that on 12,4 % is more than payments of 2011. In 2013 the increase of payments of 10,1 % or 161,3 billion tenge is planned.

- On payment of special welfare payments – in 2011 – 72,5 billion tenge, in 2012 – 68,4 billion tenge, that on 5,6 % below payments of 2011. In 2013 the gain of payments will make 6,9 % by 2012, and will make-73,1 billion tenge.

For improvement of quality of a standard of living and strengthening of health of the nation in 2012 realization of the state program of progress of healthcare « Саламатты Қазақстан » for which it is allocated 78,4 bln tenge is continued.

Table 1 - The Basic social parameters per 2010-2013

Tenge

Indicators	2011	2012	2013 forecast
Living wage	15 999	17 119	18 317
The minimal size of pensions	16 047	17 491	19 066
Base pension	8 000	8 560	9 159
The average size of pensions from the State center on payment of pensions	28 205	31 770	33 709
The minimal size of wages	15 999	17 119	18 317
Monthly rated parameter (МРП)	1 512	1 618	1 731
The state social b enefits	16 128	17 730	19 162
On physical ina bility	16 850	18 364	20 017
On the occasion of loss of the supporter	15 262	17 189	18 736
On age	8 149	8 883	9 682
The state special grants
Under the list 1	13 608	14 562	15 579
Under the list 2	12 096	12 944	13 848
The grant in higher educational institutions	15 234	15 234	15 234
The grant in average-special educational institutions	12 187	12 187	12 187
Average wages of professors*	71 712	71 712	71 712
Average wages of doctors (in view of the differentiated payment)	86 145	86 145	86 145

* Compiled by author

Since January, 1st, 2013 the average sizes of pensions on 9 % have been raised, the sizes of social benefits are increased on the average by 8 %.

The size of base pension payments is raised up to 50 % from the size of a living wage and has made 9159 tenges.

The actual mid-annual quantity of addressees of pensions has made in 2011 1 740 041 person, at the plan 1 739 853 person.

The size of a living wage for calculation of the sizes of base social payments has been established since January, 1st, 2013 in the sum 18 317 tenges.

As a result of the lead actions of the program the parameter of parent death rate in 2012 has decreased on 22 %. The parameter of infantile death rate has decreased on 9 %. The parameter of death rate from malignant new growths has decreased on 3 %. Disease of a tuberculosis is lowered on 5,7 %, the general death rate over the reporting period also has decreased on 2,3 %.

The quantity of the organizations rendering highly specialized medical aid, in comparison with 2011 has increased for 60,2 % and has made 149. The list of medical technologies is expanded with 268 up to 341: in the field of cardio surgery, transplantologies, neurosurgery, oncology.

Picture 3. Expenses of the state budget on social area for 2013

The note: it is made by authors according to Ministry of Finance RK [2]

As shown above, expenses of the republican budget on social area in 2013 will make 2 418,8 billion tenge, or 54 % from the general expenses.

The forecast of expenses of the budget for social area in 2014 makes 2 612,8 billion tenge, or 55 % from the general expenses, and in 2015 – 2 849,1 billion tenge, or 58 % from the general expenses.

Apparently, the budget of the country strengthens the basic vectors of work of the Government for the forthcoming period on maintenance of social stability, employment of the population and dynamical progress of economy.

Significant investments in the social area, carried out during long-term time, now serve the good base to realization of social modernization. And the word "modernization" has ceased to associate with indispensable growth of expenses.

The dominant role of the budget consists that it will annually mobilize and concentrates monetary accumulation of the enterprises, the organizations and population in the centralized state fund for financing a national facilities, welfare actions, strengthening of defensibility of the country, on a content of bodies of the government and formation of reserves, its value increases in today's conditions with an indispensability of realization of problems of social modernization of the Kazakhstan society.

Direction of development budget

The president of Republic Kazakhstan N.A.Nazarbaev in the next Message to people of Kazakhstan «Social and economic modernization – the main vector of progress of Kazakhstan» has defined the further strategy of «social modernization», a new stage of the Kazakhstan way which includes such directions as:

- budgetary programs related with strategic objectives of progress;

- budgetary resources are allocated for achievement of results;

- accent of expediency and efficiency of expenses through granting of independence;

- budgetary programs are directed on rendering of services to the population, business and the state bodies each other. [4]

Table 2 - The Basic macroeconomic parameters and parameters

of the State budget of Republic Kazakhstan

Indicators	2013 year	2014 year	2015 year
Volume of GDP (bn of tenge)	36586,0	41221,5	45121,5
Dynamics of growth of GDP, in %	6,5	7,0	7,5
Inflation, in %	6,0	6,0	6,0
Incomes of the state budget (bn of tenge)	5415,1	5707,1	6388,2
Expenses of the state budget (bn of tenge)	6200,3	6466,0	7124,0
Deficiency (bn of tenge)	-785,2	758,9	735,8
Deficiency to GDP, in %	2,1	1,8	1,5

*Note: the Forecast of social and economic progress RK 2011-2015 [5]

Among the basic macroeconomic parameters incomes and expenses of the budget keeps the tendency to growth according to the general growth of GDP, and deficiency will be lowered to 1,5 %.

With a view of reduction of costs and the control over expenses methods and the tools which have proved the efficiency in corporate management are applied: strategic planning, the program approach to the decision of priority problems, management of the finance and electronic data processing.

One of basic elements of the budgetary reforms lead last decades in the majority of industrialized countries according to the concept of the new government, became transition to use of model of the budgeting focused on results within the limits of intermediate term financial planning.

Within the limits of this model the budget is shaped proceeding from objectives and planned results of a state policy. Deficit spending have a precise binding to functions and the state services, at their planning the basic attention is given a background of end results within the limits of budgetary programs.

The literature

1. Omirbaev S.M., Intykbaeva S.Z., Adambekova A.A., Parmanova R.S.textbook « the State budget » Almaty, 2012, with. 86

2. www.minfin.kz

3. The official data from Agencies of Republic Kazakhstan according to

4. Strategy "Kazakhstan-2050": a new political direction taken. The message of the President of Republic of Kazakhstan — the Leader of the Nation N.A.Nazarbaev to people of Kazakhstan, Astana, on December, 14th, 2012

5. The forecast of social and economic progress of RK 2011-2015