On the Management and Financial Resources Formation of Local Budgets
Authors: Nurmaganbetova M. S. , Dauliyeva G. R. , Niyazbaeva A. A. 
Published: March 2021

The purpose of the study is to determine the role and significance of measures for the management of financial resources of local budgets. The objectives of the study include: conducting a theoretical study of management issues and the formation of financial resources of local budgets, studying the financial reports of the regions of Kazakhstan, statistical processing of the data obtained.

Materials and methods. In the process of preparing the article, the issues of introducing the fourth level of the budget, on the participation of citizens in budget planning were considered. The authors analyzed the financial reports of the regions for the execution of the 2019 budget. In the process of preparing the materials for the article, the authors used the information of the website of the Ministry of Finance of the Republic of Kazakhstan, analytical statistical materials, and scientific works of scientists of Kazakhstan.

The following research methods were used in the work: theoretical (analysis, synthesis, generalization), empirical (observation), statistical analysis, etc.

Results. The public financial management system, in particular, has been the subject of large-scale reforms in recent years aimed at strengthening the country’s strategic development potential. In recent years, the orientation of budget planning to results has noticeably improved. The priorities of the “model of socio-economic development of the country” are agreed by the government and put forward by the Ministry of National Economy, and are duly reflected in the annual strategic plan of each ministry. Based on recent reforms, the programs outlined in the strategic plans are broadly aligned with the budget programs of the ministries, and management responsibilities in each province have been clarified.

In recent years, important changes have occurred in relation to access to information, an online portal “Open Budgets” was developed, a civil budget was introduced, and centralized guidelines for their preparation were presented.

Since 2018, Kazakhstan has introduced a fourth budget level for local governments. 90% of these budgets are formed from taxes and payments by residents themselves. Since January 1, 2020, in the cities of regional significance, villages, settlements and rural districts of the Republic of Kazakhstan with a population of 2,000 people and below, an independent local government budget has been introduced. In 2020, the corporate income tax (CIT) from small and medium-sized businesses as a revenue item was transferred from the republican budget to the local one. Thus, CIT receipts will be credited to the republican budget only from large business entities. Also, the maslikhats (local representative body) of the regions have the right to establish the standard for the distribution of CIT from small and medium-sized businesses between the regional and district budgets.

Conclusion. Effective management of budgetary resources in accordance with the current budget policy should be guided by the implementation of the general goals facing the country’s budget system: impact on economic growth and employment, ensuring the economic and political functions of the state.

The main priority in planning government revenues and expenditures is the well-being of citizens of Kazakhstan, namely, their social support, health and education, as well as creating conditions for high-quality post-crisis economic growth. Therefore, it is especially important to note the role and importance of measures to manage financial resources of local budgets.