New Budget Code to ensure consolidation of all financial flows of State — Alikhan Smailov

The draft of the new Budget Code was considered at a government session chaired by Prime Minister Alikhan Smailov.

As the Minister of National Economy Alibek Kuantyrov noted, when preparing the document, all the reforms and trends of recent years, the instructions of the President, the recommendations of international organizations, the Supreme Audit Chamber and the expert community were taken into account. The draft of the new code is aimed at simplifying budget processes, improving inter-budgetary relations and improving the quality of public finance management in general.

Due to the introduction of the block budget in the pilot mode, the flexibility and independence of government agencies will increase. At the same time, a norm is introduced prohibiting the opening of a second or third budget program for one purpose. At the same time, the volume of redistribution of funds between budget programs will increase from 10% to 15% through adjustment.

The new code also strengthens the transparency and accountability of participants in the budget process. The main criterion here is responsibility for the quality and results of the work carried out. Accountability will be ensured through the hearing of officials in representative bodies in the defense of the draft budget and the report on its implementation, the publication and discussion of documents, the conduct of state audits, as well as the establishment of the responsibility of officials.

"Thus, an integral system of regulation of budgetary legal relations has been created. Uniform principles of the budget system have been established and a scheme of inter-budgetary relations has been built.  A mechanism for saving oil revenues has been introduced," Alikhan Smailov said.

At the same time, the new economic course, outlined by the Head of State in his Address to the people, requires updating approaches to the formation and implementation of budget policy. In this regard, the new code ensures the consolidation of all financial flows of the state, strict compliance with budget rules and accountability of quasi-public sector entities.

"The Budget Code will become a framework and flexible document that defines the basis for the distribution of public finances. One of the novelties is the pilot introduction of block budgeting, which contributes to increasing the independence and efficiency of government agencies," the Prime Minister emphasized.

As for the National Fund, in accordance with the instructions of the Head of State, funds from it will be directed only to finance critical infrastructure and strategic projects.

"The new Budget Code should become a key instrument of state economic policy. It will contribute to the implementation of the tasks set by the President for socio-economic development. The Code meets the needs of the present time and implements a course on lean and responsible budget policy," said Alikhan Smailov.

After the voting procedure on the document, the head of government instructed to ensure its submission to the Parliament of the Republic of Kazakhstan.

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