Экономические науки/3.Финансовые отношения

Khussaiyn F., master student

Karagandy еconomic university of Kazpotrebsoyus, Kazakhstan

Public financial management ANALYSIS from a perspective of ASSURANCE OF KAZAKHSTAN’s

ECONOMIC SECURITY

The economic security of the Republic of Kazakhstan today has become one of the problems attracting attention of political statesmen, jurists , economists, etc. Under the conditions of weak and inefficient economy it is difficult to contain the onslaught of internal and external threats, to be a strong and mobile army , designed to ensure the military security of the country . In an annual address to the nation, President Nursultan Nazarbayev said that ".. we will not be sorry if we lose our statehood , waive strategic fundamentals of sovereignty , land and resources ." Past years of independence showed that the market economy itself does not provide a full-fledged economic security. In this sense, government intervention was necessary in relation to the chaotic and herd behavior of other market actors [1, p. 71].

The state holds a key position in the regulation of social relations associated with cash , speaking both as an owner and as an administrative entity . It is the role and activities of the administrative entity and represent the Institute of Administrative Law on " financial management, credit and taxes ." State management in the field such as finance, carried out by special executive bodies with administrative means of power and the aid of which the traffic control cash flows. Income received in the market and in the economy should be shifted so as to provide the necessary funds for the operating all of the entire state mechanism. In this connection it is appropriate to recall the aphoristic statement of scholar Jean Bodin , which states that " financial means are the nerves of the state" [2 , p. 62].

An essential element of economic security in modern terms - is the financial component. And this is due to the following arguments and circumstances. In modern conditions geofinansov impact, global financial systems on individual state to a qualitatively new level. As rightly pointed M. Osipov, given the dominant position occupied by the financial component of the modern economy, we can characterize the latter as an economy -driven basis in its financial way through financial mechanisms by financial leverage, financial incentives and fiscal purposes. Globalism demonstrated currently economic civilization, is what creates the conditions for the establishment of a special financial power, which through the ownership and disposition of the global currency value, cash flow management allows you to impact on all the world economic space, and the individual states.

State Administration of financial security of the state - the main condition of its ability to carry out its own financial and economic policy in accordance with its national interests. In general, in our opinion , the financial component of the economic security of the Republic of Kazakhstan is the ability of its bodies:

- Ensure the sustainability of economic development in the heart of the strategy "Kazakhstan -2050 " ;

- Ensure the stability of the payment and settlement systems and major financial and economic parameters;

- To neutralize the impact of the global financial crisis and deliberate action of the world states , TNCs, sub-state groups , and others , shadow , etc. , structures on the national economic and socio- political system of the Republic of Kazakhstan ;

- Prevent large-scale capital flight abroad, «capital flight «from the real economy»;

- The most optimal for the economy to attract and use foreign borrowing funds;

- To prevent crimes and administrative violations in the financial legal relations.

All of the above can also be represented as some tasks that should solve the organs of state power and administration in order to ensure safe and efficient operation not only elements of the financial system of the state, but all interrelated with her levels of government.

Government and public finance are interrelated, their existence is unthinkable apart. Projects are both base exercise of public authority. Power to dispose of funds, perceived as more effective than the methods which operates law enforcement. But embodied in the law enforcement authorities need to ensure that state funds , especially for the collection of taxes. Thus, the public finances - a prerequisite, and a means to simultaneously state activity [3 , p. 34].

Improving financial management, credit is largely associated with the organizational structure and powers of government, the activities of ministries and departments, their relationships with other government agencies. One of the most important mechanisms that allow the State to pursue economic and social regulation, a financial mechanism - the financial system of a society, the main element of which is the state budget [4, p.66].

The state budget, as the principal means of mobilizing and spending of state resources, political power gives a real opportunity to influence the economy, finance its restructuring, stimulate the development of priority sectors of the economy, providing social support to the most vulnerable segments of the population.

The main volume of administrative functions in the areas of finance performs Ministry of Finance of Kazakhstan, and included in its system bodies. Ministry of Finance of the Republic of Kazakhstan is the central financial and economic government body in charge of general management of the organization of finance in the country, and is responsible for implementing a unified state policy in cooperation with the credit, currency, monetary, tax and customs policy.

The most important function of the Ministry of Finance is the organization of the work on the budget, which is the main document of the state. Budget - is calculated and restrictive estimates, painting income and expenses for a specific period, as approved by the relevant decision to be executed [5, p. 74].

Implementation of the budget of the state in terms of reforming the republic's economy is holding a budget and tax policy that gives priority to collecting money before the expansion of government spending. The final resolution of issues relating to the internal organization of ministries, almost impossible, as it is often dependent on external circumstances.

One of the essential principles of building services (offices) of the Ministry is to join them on a vertical basis in accordance with the basic functions of the ministry. Management can not exist in an unchanged form and evolve according to the law tools to organizations of executable functions. Financial activities, which originated with the money, has the ability to pass them, exchange, convert through the banking system. Of the features of financial operations imply specialization of functions performed by the various financial authorities [6, p. 81].

The whole system of specialized government finances wider than the system of financial agencies (agencies). In accordance with the current legislation of the Republic of Kazakhstan held a definite distinction between the purely financial, credit and tax functions. Subjects implement them, and make up a system of financial authorities. Although they operate independently, but in close relationship within above departmental inter branch and industry-specific credentials.

The state budget has not only direct but also indirect effects on socio-economic development of the country. Direct effect - this change in the distribution of resources in the economy, which are the direct result of the taxation or budgetary expenditures. Indirect impact is that contained in the budget documents forecast values key development indicators (GDP, inflation rate of the national currency, etc. ) , the priorities of the state financial policy , specific areas of formation and expenditure of the budget form in society certain expectations and accounted other market when planning their business activities in the future.

Role of state budget manifested through them perform certain functions:

- Concentrated in the budget funds intended for the implementation of national social and economic policy, defense and security of the country.

- With a state budget are implemented ( at different levels ) and local programs for the development and normal functioning of the branches of the economy , for the conversion of the military -industrial complex , environmental protection , to strengthen scientific and technological capabilities and develop the culture of the country , keeping the material standard of living population and its separate groups . All these problems have a common value for the respective territory.

- Accumulation in the budgetary system of large money funds creates opportunities to ensure uniform economic and cultural development throughout the country , suitable accommodation within its productive forces.

- Budget is a powerful control mechanism in the hands of the state , stands the conductor of his financial policy. Value due to the state budget not only by being concentrated in it means. In close relationship with the budget and operate under its influence all other parts of the financial system.

- Availability budget creates room for maneuver in the allocation to the needs of society in accordance with their priority for a certain period of time for the whole country or its regions. As a result, the budget serves as a realization of the tasks most important to society at a particular period of its development.

- The role of the state budget is that it contributes to the implementation of regional and national policies. Among the main objectives of regional policy, the following : the creation of a single economic space, leveling the socio-economic development of regions [7, p . 123].

Thus , the state budget - a set budgets, consisting of national and local budget . The role of the state budget in social reproduction is determined primarily by the fact that with the help of the state budget is distributed and redistributed about 30 % of national income , and 10 to 15 % of the gross national product ( expenditure side) . It distributes funds between the various sectors of the economy , manufacturing sectors , the public sphere, economic regions and territories of the country.

In modern conditions of development of Kazakhstan's economy the role of the national budget is becoming increasingly important . He became the main instrument for the implementation of economic and social policy of the state , providing a significant impact on economic growth , the financial regulation of the economy and , ultimately , to increase its competitiveness. Republican budget - a centralized pool of money generated by tax and other income as defined by the Budget Code. Republican budget is intended to help finance the tasks and functions of the central state organs, public institutions subordinated to them and implement country-wide public policies.

To analyze the execution of the republican budget, consider one section of the structure - government revenues, because they play a fundamental role in the development and establishment of the state. Income must be understood system of economic relations in the course of which a set of funds coming to the state property to create the material basis of its functioning.

Only national budget received - 4 451.6 billion or 102.5% [8]. Including taxes 3 001.2 bln 102.3%, non-tax - 108.9 bln 126.1%, revenues from sales of fixed assets - 16.1 bln 113.4% and transfers received 1 325.4 billion, or 101.1% (Table).

State budget of the Republic of Kazakhstan in 2010-2012

million tenge

Name	2010	2011	2012
1	2	3	4
I. INCOME	2 779 228	3 626 177	4 451 683
tax revenues	1 451 007	2 083 555	3 001 212
including:
corporate income tax	643 669	837 233	1 050 380
value-added tax	515 933	677 229	865 213
excises	18 578	13 614	18 668
non-tax revenue	114 296	71 429	108 942
Proceeds from the sale of fixed capital	4 538	23 736	16 088
Incoming transfers	1 209 386	1 447 457	1 325 441
II. COSTS	3 118 646	3 860 974	4 605 059
III. NET BUDGET CREDITS	25 036	35 981	84 614
public budget loan	45 540	138 297	183 853
Payment of public budget loan	20 504	102 315	99 239
IV. BALANCE ON FINANCIAL ASSETS	146 492	284 011	337 962
Acquisition of financial assets	147 083	284 711	338 321
Proceeds from sale of state assets	591	700	359
V. BUDGET SHORTFALL (SURPLUS)	-510 946	-554 789	-575 952
VI. FINANCING OF BUDGET SHORTFALL (SURPLUS)	510 946	554 789	575 952

The main share of tax revenues accounted for corporate income tax, value added tax and excise duties. The dynamics of the state budget in 2010-2012 is presented in Figure 1.

Figure1. The dynamics of the republican budget.

In 2012, revenues amounted to 4 451.6 billion, as compared with 2011 increased by 825.6 billion, or 19%. In 2011 compared with 2010, revenues rose by almost a factor of 2, which shows a positive growth trend.

As already mentioned above, the budget revenues are generated through tax and non-tax revenues. Tax revenues in 2012 amounted to 3 001.2 billion, as compared to the year 2011 to more than 917.7 billion, or 30%.

Overfulfillment plan on tax revenues of 66.3 billion, mainly formed by :

- The growth of the foreign trade turnover of the country and increasing revenue by 48.8 billion tenge in the value added tax and excise duties on imported goods , customs duties, distributed in Russia and Belarus due to increased imports;

- Reduction in the rate of VAT refund from the budget ( at planned return in the amount of 315.2 billion KZT 306.4 bln returned due to non-confirmation of the amounts claimed for refund in the amount of 10.0 bln due to lack of documents international transit cargo );

- Non-recurring income of $ 17.7 billion ( of which , income tax on the additional income in excess returns for the years 2011-2012 in the amount of 6.2 billion tenge and premature payment of the tax on mining activities by individual companies for 4 quarter of 2012 in the amount of 11.5 billion ( payment deadline February 25, 2013 );

In addition, the corporate income tax plan is not fulfilled by 10.1 billion, due to a decrease in advance payments due to lower taxable income for the 2012 single largest contributor.

Non-tax revenues exceeded 22.6 billion, due to unplanned revenue dividends in the amount of 6.1 billion, in the amount of fines 12.5 billion, as well as in the amount of 3.3 billion tenge under the Agreement between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on cooperation and mutual settlements in the disposal of nuclear weapons.

For income transfers plan was exceeded by 14.7 billion for the proceeds amounts return transfers are not used for their intended purpose and unused targeted transfers that are not planned.

Despite the over-fulfillment of the plan revenue growth in 2012 marked the arrears. As of January 1, 2013 the amount of arrears was - 224.2 billion, an increase of 25.2 billion as compared to 2011 (Figure 2).

Figure 2. Dynamics of arrears in 2012, KZT.bln

In the total amount of arrears can distinguish hopeless arrears - 73% or 164.9 bln and current arrears - 27% or 59.3 billion.

Compared with 2010 uncollectible arrears increased by 22.8 billion, or 16.1%, current arrears increased by 2.4 billion, or 4.2%.

Uncollectible arrears associated with tax audits of taxpayers with signs of pseudo-entrepreneurship. Current arrears formed on current accruals taxpayers as well as tax audit . Basically , the current arrears repaid by taxpayers on their own or be collected by the tax authorities forcibly. However, as part of the current arrears 23.8 bln or 40.2 % from the arrears of taxpayers with foreign participation, which are in international arbitration proceedings in respect of which is the procedure of mutual agreement, in accordance with an international treaty on avoidance of double taxation. Such arrears, after adjusting for the results of the appeal shall be transferred to the budget.

In addition, 29.5 bln 49.8% of the total current arrears falls on taxpayers who have a property which is pledged to the banks of the second level, as well as problematic arrears taxpayers associated with the problems of shared construction in therefore, recovery is impossible in full.

It should be emphasized that the organization of an effective system of providing financial and economic security in Kazakhstan, we consider in the context of the formation of organizational support system SFC in general. Naturally, analyzing the issues of granting any specific functions SFC oversight of financial and economic security of the country, it is necessary to take into account their actual capabilities. In light of the importance of the problem concerned, in our opinion, it is necessary to study and justification to complement the activities of the Accounts Committee for Control over Execution of the Republican Budget activity to oversee the economic security of the Republic of Kazakhstan in the budget process. One of the most important areas of oversight of financial and economic security of the Republic of Kazakhstan in the budget process are intergovernmental relations in the Republic of Kazakhstan. Indeed, hardly anyone doubts that, to ensure the financial and economic security plays a special role competent regulation of intergovernmental relations in the country. The current and updated construction budget system based on the principles of the lower-level budgets, depending on the parent.

The real financial autonomy of regional budgets is impossible without addressing the elimination of inter-budget counter flows. Solving the problem of providing a budgetary rights of regions is also impossible without establishing a definite correspondence enshrined rights and responsibilities of each level of the budget.

Solution can only be found in the implementation of the principle according to which the distribution of income between the budgets of different levels is carried out in strict accordance with the share of expenditures allocated to the relevant entity, subject to the decision of tasks to equalize the revenue part of the budgets of the respective levels. Such a decision creates inter-budgetary problems the opportunity to provide lower levels of interest budgets include all reserves to expand revenue sources on the ground and does not make them "poor relatives" who are forced to expect or ask for help from "above". In the case of the proposed variant regions will be able to get real budgetary powers to ensure their actual independence.

In conclusion, here analyzed only some important issues of financial and economic security of the Republic of Kazakhstan, with the goal to highlight this urgent problem and at least a "dotted line" to identify options for solving it. In connection with its significance as all these issues require further research and development.

References:

1. VD Melnikov, Il'yasov KK Finance. - Almaty: Economy, 2005. – 682p.

2. VM Rodionov , Finance and statistics, 2001 . - 587 p.

3. Utibaev BS, Zhunusova RM, Satkalieva VA State budget: Textbook. - Almaty: Economy, 2006. - 632 p.

4. Arystanbekov K.T. - Legal regulation of economic security of the Republic of Kazakhstan / / Femida. - 2009 - № 9. - S -17- 22.

5. Nurmuhanova GJ The state budget. Textbook. - Karaganda: Herald, 2001 . -138 With.

6. Baimuratov WB Finance Kazakhstan / / Selected Scientific Works. - Volume 2. Almaty: LSI - 2005 p. -20- 25.

7. VD Melnikov Public financial management of the economy of Kazakhstan. - Almaty Karja Karaj, 2008. - 593 p.

8. Execution of the Republican Budget for 2012 / / Report of the Finance Ministry on July 24, 2013. - Http://www.minfin.gov.kz.