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Wednesday, January 23rd, 2019

Kazakhstan to legislatively solve the idle funds problem of national companies


Minister of Finance Bakhyt Sultanov told about the planned changes in the budget legislation, presenting the Government’s report on the National Budget execution for 2016 at a joint session of the Chambers of the Parliament of the Republic of Kazakhstan.

Improving the spending efficiency, reducing the amount of unutilized funds and violations � these are the main objectives of the ongoing work to improve budget legislation. The budget legislation will be amended in the following areas.

Firstly � reducing administrative barriers in the budget process. In this direction, it is planned to expand the autonomy of state agencies in redistributing funds within the budget program when the budget is implemented. At the same time, the responsibility of administrators and local executive bodies will be increased.

Secondly � in the event that one state body does not fully apply budget funds, this amount can be transferred to another state body by Government decision.

Thirdly � the use of funds in the accounts of subjects of the quasi-public sector is regulated. There will be a solution to the issue of returning these balances to budget revenue or allowing them to be used for other investment projects of the subjects of the quasi-public sector. Along with this, when planning, the entire amount specified in the financial and economic justification will not be allocated in one sum, but in stages, � B. Sultanov said.

Earlier, at the plenary session of the Majilis, Chamber Speaker Nurlan Nigmatullin noted that some subjects of the quasi-public sector, having large sums on their accounts, are requesting new billions in order to keep the amount of budget funds received for the next financial year. The Chairman of the Majilis stressed that state bodies need to think about changing the financing mechanism of the quasi-public sector and increasing the responsibility of budget program administrators so that money is not idle, but really works for the country’s economy.

Minister B. Sultanov also said that procedures for developing public-private partnership projects are streamlined to attract private investors to implement budget investment projects. Agreements on the results of targeted development transfers are eliminated. At the same time, a report on direct and final results is provided for their implementation.

According to B. Sultanov, all the above measures are designed to facilitate rapid infusion of funds into the real economy.

Source: Government of the Republic of Kazakhstan