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Stability of budgeting process and prevention of budget overrun must be priority - Government's session

ASTANA. 05.05.2010. KAZINFORM /Muratbek Makulbekov/ Efficient utilization of the budgetary funds is one of the most important issues to date due to conduction of administrative reform in the country. As President Nursultan Nazarbayev noted in his annual Address to the Nation New Kazakhstan in New World as of February 28, 2007, administrative reform must become a tool of implementation of the plans on Kazakhstan's accession to the club of 50 most developed countries of the globe. In pursuance of the President's instructions the Government developed an Action Plan on realization of the Concept of implementation of result-oriented state planning and budget. The administrative reform includes six directions - the reforming of public service; improvement of state planning; result-oriented budgeting; improvement of the quality of public services; optimization and efficient management of public sector of economy; monitoring and assessment of the results of state bodies' activity and public sector of economy. The last session of the Government held on May 4 focused namely on the results of realization of the third block of the administrative reform - result-oriented budgeting. Restructuring the system of budgeting is explained by necessity of enhancement of control over efficiency of utilization of the budgetary funds. Alongside, state bodies are provided more independence in distribution and usage of the budgetary means within the reform. However, as Prime Minister Karim Massimov said at the parliamentary hearings on administrative reform in May 2007, "we will enhance responsibility of the heads of state bodies for achievement of certain results. For this we will introduce amendments in budget classification. Standards of accounting and financial reporting of state administration bodies will be approved". Along with this the PM noted that budgetary funds would be allotted only for achievement of certain strategic goals. Thus, the major aim of result-oriented budgeting is formation and execution of the budget for achievement of certain results in conformity with strategic directions, goals and objectives of state policy. The main difference of the result-oriented budgeting from the budget system that functioned till 2009 lies in that the budgetary programs are interconnected with strategic goals of development and budgetary means are allotted for certain aims. Particular attention is given to the budgetary programs which are developed in accordance with new budgetary policy, directed on provision of services to population, business and state bodies to each other. Finally, implementation of the result-oriented budgeting system aims at harmonization of the strategic, economic and budget planning. In 2009 for the first time the country set to realization of the strategic plans of state bodies interconnected with the budgetary means allotted to them. Special attention is given to control over achievement of certain results of the state bodies' work. Heads of central state bodies are imposed responsibility for adoption of decisions and confirm their intention to reach the goals outlined in their strategic plans. In whole, state authorities' work in 2009 demonstrated effectiveness of the new approach to budgeting. Summing up the results of the discussion the Prime Minister said that much work should be done for development of the content of budgetary programs. In this view, K. Massimov entrusted the heads of several ministries with certain tasks. Thus, the Ministry of Finances was charged to conduct an analysis of formation of the budgetary programs, their content and validity. The Head of the Government highlighted importance of ensuring stability of the budgeting process and prevention of budget overruns. "It becomes possible only due to proper organization of work of each ministry and department" he stressed.


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