REGIONAL FINANCIAL DECENTRALIZATION KAZAKHSTAN

Abstract

In the article, the authors raise the topical issue for Kazakhstan of the transition to financial decentralization of the regions as part of the ongoing reforms in the field of improving the public administration system. Increasing the budgetary independence of the regions as an element of the new economic model is one of the urgent tasks set by the Head of State in his Address. This will be achieved through the implementation of phased fiscal decentralization and a reduction in transfers in the structure of local budget revenues. Today, local budgets, except for four regions, are subsidized. At the end of 2022, half of the regions did not reach the level of the national average gross regional product per capita.

Along with studying the theoretical and methodological foundations of the subject area under study, the authors analyzed modern trends in the development of interbudgetary relations. The current system of state budget distribution in the republic is overly centralized and does not ensure inclusive growth, which thereby leads to socio-economic imbalances. Regions need additional tools to expand financial independence, the ability to manage financial potential with regular assessment of the quality of management of the regional financial system.

Based on the results of the analysis, the authors identified key problems that limit the effectiveness of the measures being implemented and developed appropriate recommendations for solving them.