There is a strict differentiation of authority in the management of state ownership between the legislative and executive branches, as well as between organs at different levels in the republic. State finances The central place in the sphere of state finances belongs to the state budget and budgets at the other levels of management. The management of state finances is carried out through the adoption of legislative acts, budgets and reports on their performance, imposition and resumption from taxes and other payments to the budget. The government of NKR, local executive organs, tax service, the treasury, administration of non-budget state funds conduct the operative management of the finances. The President signs state and local budgets approved by the National Assembly.
Taxes are the main source of revenues.
The structure of the NKR state budget tax revenues in 1997 and 1998 State expenditures including net crediting are formed predominantly from purchasing goods and services, paying salaries of public servants, social payments and servicing national debt. The purpose of the reforms is to secure economic growth, create industrial complex, which has to become the main source of revenues for the state budget. The flexible tax policy carried out today has many privileges both for local and international investors. NKR credit system includes bank, consumer, commercial and state crediting. Credit policy in the NKR is conducted by the banking system that includes a wide range of specialized commercial banks with modern technical equipment.