Law/2. Administrative
and financial law
Madina Issina, Arailym
Dzhangabulova
Al-Farabi Kazakh National University, Kazakhstan
Concept of the budgetary process of
the Republic of Kazakhstan
The budget is an
important financial document of the country which determines many parameters of
its development the forthcoming year and medium-term prospect. Therefore the
special attention at all levels of the power and at all stages of passing of
calculations is paid to its development. The budget of the state plays a
significant role in political and economic life of the country.
The budget
(Budget) in translation from English meant a bag. When the House of Commons in
England approved the XVI-XVII centuries a subsidy of kings, before the end of a
meeting the chancellor of treasury (Minister of Finance) opened a briefcase in
which paper with the relevant bill was stored. This action conditionally was
called as opening of the budget, later the name of a portfolio was postponed
for the document. Since the end of the XVII century also the document which
contained the plan of the income and expenses of the state approved by
parliament began to be called as the budget. Of course, it would be more
correct to call this document the budgetary plan. Otherwise this document was
called also by «a list of the monetary income and expenses of the state», «the
estimate of the income and expenses of the state», «the state list».
So such budget?
For definition of this concept address to the concept «finance». Finance - it
is system of the imperative monetary relations in the course of which the
centralized and decentralized funds of money accumulate, distributed and used.
The budget also represents system of the monetary relations.
That is the
budget - is system of the imperative monetary relations in the course of which
the budgetary fund is formed and used. [1, 76 p.]
But we will
address to history. The deep changes which happened at the end of XVIII - the
beginning of the XIX centuries in the field of policy, in the social relations
and in the sphere of economy, caused radical changes in the state order. The
increase in the state budgets and debts was one of signs of new conditions of
the state life. This growth seemed rare phenomenon in the beginning.
Financiers of the
beginning of the XIX century considered that with approach of quiet times the
budget to decrease, but growth of budgets by the end of the XIX century
surpassed all expectations. There was a question of need of systematic
activity. The state budget which found the expression in the form of the state
list of the income and expenses became means of achievement of this purpose.
From now on the budget turned into a necessary condition of the developed state
farm.
So, an essential
sign of the budget - its planned character. The budget (in the theory and in
practice) - is the plan of a state farm for the forthcoming period. The moment
of planned character is the patrimonial sign uniting the budget with other
types of financial plans. The planned nature of the budget is well looked
through against an unregulated national economy what it was to the first half
of the XX century.
As well as any
other plan, the state budget has to be formed for a certain period. In many states
one year which received the name «financial» was chosen such period. Fiscal
year, or the period, the period proceeding between opening and closing of the
state bookkeeping is called. In the majority of the countries it corresponds to
calendar year (the CIS countries, Italy, France, etc.), and in some begins on
April 1 and comes to an end on March 31 (Great Britain, Japan), or lasts from
July 1 to June 30 (Canada), from October 1 to September 30 (USA), from March 1
to February 28 (Turkey). In the Republic of Kazakhstan fiscal year begins since
January 1 and comes to an end on December 31 calendar year. Distinction of
fiscal year from the calendar is explained by historically established
practices, terms of convocation of sessions of parliaments [1, 77 p.].
Alexis de Tocvil,
the French traveler who created a picture of the American state and public life
of the second quarter of the XIX century in the work «Democracy in America»,
arguing on a role of the state budget and trying to compare success of its use
in various countries, I wrote: Whether «The country makes impression of the
prospering power; whether after payment of taxes to the state remains at poor
enough means for life and whether keeps rich that surplus which do it rich;
whether both that and another make impression of the people happy with destiny;
whether they seek to improve constantly the life at the same time caring of
that the industry didn't know a lack of capital investments for the development
and that was where to invest the capitals, - answers to these questions and are
those characteristics to which in the absence of the necessary documents it is
possible to resort to learn, in what ratio there are public expenditures paid
with the people with means which the people own». [2, page 5]
Russian scientist
A.D. Gradovsky, describing the general situation in France on the eve of Great
French Revolution testifies: «Need to take drastic measures, and to open to the
country a true state of affairs was put. These objectives were achieved by the edition,
in 1781, the well-known report on finance (compte rendu). «Report» made
tremendous impression. For the first time the reading society saw the valid
provision of finance; for the first time it saw also where there are taxes and
taxes and as pensions, high salaries and different deliveries court and the
nobility absorb public funds». Full frustration of public finances became one
of the main reasons of Revolution: from the moment of the first publication of
compte rendu (actually, the report on a condition of the budget) until storm of
Castile passed only 8 years.
The provided
statements bring to understanding of that the state budget and till today is
for a long time a peculiar knot of relationship of the person, society and
state. Correctly built budgetary relations can promote prosperity of the state
whereas the unwillingness or inability properly to adjust functioning of
finance can lead the country to infinite series of revolutions and revolutions.
The budgetary process in a broad sense is a legal form of functioning of public
finances, that is system of norms - that way by means of which just and these
relations are built. And legislative budgetary process, in turn, acts as the
central part of all budgetary process, its core [2, 6 p.].
One of the paramount
mechanisms allowing the state to carry out economic and social regulation is
the financial mechanism - a financial system of society which main element is
the state budget.
The state budget
is the main thing in system of financial plans of any country as unites them in
uniform system, defining the current year financial relationship of the state
with various links of a financial system.
Component of a
way of recovery from the crisis was adoption of the budgetary code of the
Republic of Kazakhstan of the April 24, 2004 which established the general
principles of the budgetary legislation and legal bases of functioning of the
budgetary system and the budgetary process of the Republic of Kazakhstan. In
this regard studying of the budgetary system, the budgetary process,
theoretical and legislative bases and real practice of functioning of the
budgetary mechanism found special relevance now [3].
Strength of the
budgetary code is existence of reserves. Reserves of the Government of the
Republic of Kazakhstan and local executive bodies are formed as a part of
republican and local budgets for financing of the expenses which aren’t planned
when developing republican and local budgets owing to their unexpectedness and
demanding urgent financing current financial year.
The budgetary
process – the activities of government bodies for planning, consideration, the
statement, execution, specification and updating of the budget, conducting
accounting and financial statements, the budgetary account and the budgetary reporting,
the state financial control, the budgetary monitoring and an assessment of
results regulated by the budgetary legislation of the Republic of Kazakhstan
[4].
The budget - the
important prerequisite and an implementer of reproduction process. With its
help conditions for execution of social programs, ensuring safety of
environment, stimulation of scientific and technical progress, maintenance of
defense capability, and performance of other state functions are created.
Search of an exit from an economic crisis in which there was Kazakhstan today,
demanded cardinal updating of a financial system of society.
Recognition of
the budget the main financial plan characterizes its important place in
redistribution of the national income, a special role in public reproduction.
So, through the state budget about 50% of the national income, about 3/4 all
funds of many countries is redistributed. It allows the state not only to
satisfy nation-wide requirements, but also actively to influence for the rest
of life societies, to provide implementation of the program of economic and
social development of the country.
The budget is
formed on the basis of the annual message of the President of the Republic of
Kazakhstan to the people of Kazakhstan, considering parameters of the
indicative plan of social and economic development of the Republic of
Kazakhstan for the corresponding year accepted by the Government of the
Republic of Kazakhstan.
In the Republic
of Kazakhstan three levels of the budget function: republican budget; regional
budgets (14) and budgets of Astana and Almaty; budgets of areas and budgets of
the cities of regional value.
Budgets of funds
of economic and social development of special economic zones on financial are
approved year according to the legislation on these funds.
Formation, the
statement and the accounting of performance of budgets of all levels are
carried out in national currency.
Process of
drawing up the draft of the republican (local) budget includes the following
stages:
1) development of
the draft of the Forecast of social and economic development and budgetary
parameters of the Republic of Kazakhstan (region) and its approval by the
Government of the Republic of Kazakhstan (local executive body);
2) Development of
drafts of strategic plans central state (local executive) bodies, the budgetary
demands (till May 15 and their consideration by the Republican budgetary
commission (the budgetary commission of the subordinate budget) ;
3) Development of
the bill on the republican budget (solutions of a maslikhat on the local budget
no later than October 1 of the current year) no later than August 1 of the
current year. [5]
The budgetary
process is faced by the following tasks:
• The maximum
identification of all material and financial reserves for achievement of
significant progress on the way to the balanced market;
• definition of
the income of the budget for separate tax and other payments, and also total
amount according to forecasts and target programs of social and economic
development;
• Establishment
of expenses of the budget for purpose, and also total amount proceeding from
requirement of uninterrupted financing of all actions of nation-wide value
provided by the budget;
• coordination of
the budget with the general program of the financial stabilization directed on
overcoming of inflationary tendencies in economy and ensuring stability of
national monetary unit;
• Reduction and
elimination of budget deficit at the expense of economically justified sources;
• Implementation
of the budgetary regulation for balance of budgets of different level by
redistribution of sources of the income of the state between them, and also
between economy spheres, economic regions;
• Increase of a
role perspective budgetary planning (forecasting);
• Control of
financial activity of legal entities and the income of certain citizens at
implementation of tax obligations by them. [1, 111 p.]
In summary it is
possible to draw a conclusion, that the budget of the state is obliged to
provide with necessary financing socially - economic development of the
country, its defense capability and other requirements. Development of the
budget of the state is carried out on the basis of the forecast socially -
economic development of the Republic of Kazakhstan for concrete year.
The budgetary
relations, are carried out on the basis of certain precepts of law that found
reflection in formation and development of the budgetary right. The budgetary
right is a set of laws which define an order of drawing up, considerations, statements
and budget performances. The budgetary right defines who has to make the draft
budget and in what order who has to connect finally it in a single whole, what
institutions take part in discussion of the draft budget that approves it and
in what order
Therefore, the
budget is the norm connecting activity of the government financial bodies, and
the Ministry of Finance.
By the nature the
budget - the political act. It is the management plan for future period offered
by executive power on approval of parliament.
The
list of the used literature:
1. Eriashvilli N.
D. Financial right. – Moscow, 2000. – 200 pages.
2. Ermolenko A.
S. «Constitutional and legal aspects of legislative budgetary process in the
USA». Dissertation work. - Moscow, 2003. – 191 pages.
3. Legal
regulation of the state budget in the Republic of Kazakhstan,
http://articlekz.com
4. No. 95-IV//the
Information and legal system of standardly legal acts of RK «Adilet» the
budgetary Code of the Republic of Kazakhstan of December 4, 2008
5. No. 220 «About
the approval of Rules of budget performance and its cash service»//the
Information and legal system of standardly legal acts of RK «Adilet», the
resolution of the government of the Republic of Kazakhstan of February 26,
2009.
6. The analysis
of the budgetary process in the Republic of Kazakhstan, www.predictor.kz