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Galiya Adambekova Madina Tulegenova

Abstract

Reforming the state budget system in the ongoing COVID-19 pandemic poses
more challenges to researchers and authorities in Kazakhstan than in previous periods. The
economic crisis caused by morbidity and quarantine restrictions around the world creates
restrictions on economic activity and the movement of goods. The consequence for each of the
countries is limited financial resources with significant additional budgetary costs associated
with overcoming morbidity and mitigating the social and economic impact of the pandemic.
The purpose of the study is to identify the features of the functioning of intergovernmental
fiscal relations in the Republic of Kazakhstan in the context of the COVID-19 pandemic
and the ongoing reform of the budget system. The investigation uses a deductive method to
identify problematic links in the budget system, an inductive method to generalise arrays of
empirical data and the results of the primary analysis made by other authors, as well as a
statistical method for analysing time series of budget indicators and a graphical method. The
study revealed such issues of intergovernmental fiscal relations as rigid budget centralisation,
lack of sufficient resource base for the formation of local budget revenues, lack of authority
of local authorities to find and develop sources of budget replenishment. The shock absorber
of budget imbalances – The National Fund is becoming increasingly dependent on the
unstable conjuncture of external commodity markets and financial resource constraints
will be stronger going forward. The programme-based budgeting approach, which has been
introduced in practice, encounters weak linkages between strategic programme objectives and
local needs and opportunities. Lax accounting and control over the use of funds allocated to
programmes call into question the effectiveness of their implementation.

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Articles