1. Budgeting in Kazakhstan: results of implemented reforms and plans for the future
Ministry of National Economy
of The Republic of Kazakhstan
24-25 May 2018 , Zagreb

2. Key directions of the reforms towards performance budgeting
1. THE FOCUS ON FINAL RESULTS
The architecture of program documents of all levels is built
The state agencies (ministries) develop strategic plans with defined target indicators
2. CONSISTENCY OF OBJECTIVES AND RESOURCES
Financial resources in budget programs are linked to target indicators in strategic plans
3. EVALUATION
The achievement of target indicators is evaluated (The Annual Assessment of Government Agencies Performance Efficiency has been implemented since 2010)
4. RESPONSIBILITY
The executive head is assigned for each budget program, responsible for a program implementation
The responsibility for underachievement of budget program indicators was introduced
5. TRANSPARENCY

3. Budget reforms in Kazakhstan from 2007
New approaches to Assessing government agencies
Law on Access to Information (Open Budgets Portal)
Formation of
Public Councils
New Budget Code
Introduction of Strategic Plans of state bodies
Budget programs Enlargement
Preliminary Assessment of the draft budget
Introduction of Spending Limits
2007
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Implementation of Local Self- Governments’ Budgets
Approval of State Planning System
Introduction of The
Annual Assessment of Government Agencies Performance Efficiency
Law on State Audit
New Format of Strategic Plans and Budget Programs
Increase responsibility for underachievement of budget programs indicators
Concept of Performance-based Public Administration
Presentation of Strategic Plans in The Parliament

4. Legislative basis of the budgetary process
Constitution of the Republic of Kazakhstan
Constitutional Law «About the President of the Republic of Kazakhstan»
Constitutional Law «About the Parliament of the Republic of Kazakhstan and the status of its deputies»
Constitutional Law «About the Government of the Republic of Kazakhstan»
Budget Code of the Republic of Kazakhstan

5. The Budget Code covers all levels and stages of budgeting
BUDGET SYSTEM
BUDGET PLANNING
BUDGET EXECUTION
Principles of the budgetary system
Types and levels of budgets
Budget structure
Central and local governments reserves
Formation and use of the National Fund
Types of budget programs
Interbudgetary relations between the levels of budgets
Distribution of revenue and expenditures between the levels of budgets
Issues of Budget Commissions
Development of The Economic and Social Development Forecast
Development of strategic plans, approaches to the budget programs formation
Contents of budget requests
Procedure for reviewing draft strategic plans, budget programs and budget requests
Issues of budget investments planning
The process of forming the draft budget, its consideration in Parliament (in local representative bodies)
Process for approving budgets
Budget execution issues
Updating and adjusting budgets
Budget sequester
Budget monitoring
Evaluation of results
Financial and budget reports
Preparation and approval of annual reports on budget execution
Preparation a report on the formation and use of the National Fund
Issues of public debt and borrowing

6. General provisions on the republican budget development
The Republican budget is developed annually for 3 years on a sliding basis
The Republican budget is formed by the Ministry of Finance
The basis for the Republican budget formation is The Forecast of the country's Economic and Social Development
The Republican budget is approved by law

7. Documents used in the budget process
Forecast of economic and social development of the country
Strategic plans of ministries, Territorial development programs of local authorities
Budget programs of state bodies
Law on the Republican Budget, local representative body’s act on local budget
Operational plans of state bodies

8. Linking Target Indicators to Budget Expenditures
STRATEGY OF DEVELOPENT until 2050
Target indicators
STRATEGIC PLAN OF DEVELOPENT until 2025
Target indicators
STATE PROGRAMS (15)
Target indicators
STRATEGIC PLANS
OF MINISTRIES
Target indicators
TERRITORIAL DEVELOPMENT PROGRAMS
Target indicators
BUDGET PROGRAMS
Result indicators
BUDGET

9. The process of the Republican budget development
Forecast of economic and social development (MNE)
April
Until May 1
Spending limits (MoF)
until May 15
Strategic plans
Budget programs
MNE
until May 15
June-July
Budget requests
Republican budget commission
MoF
until August 15
Correction of The economic and social development forecast (МNE)
August
Additional discussions on expenditure
Draft of the Republican budget (МoF)
until September 1
Parliament

10. The role of MNE and MoF in budgeting
МINISTRY OF NATIONAL ECONOMY
МINISTRY OF FINANCE
Forms fiscal policy and the policy of interbudgetary relations
Executes budget planning and execution
Develops The Forecast of economic and social development of the country for 5 years,
Projects budget parameters for 3 years (income, expenditure, deficit),
Projects the National Fund parameters
Provides spending limits for ministries for 3 years
Prepares a conclusion to the drafts of strategic plans and budget programs of ministries
Prepares the conclusion to the budget requests of ministries
Introduces proposals for the use of the National Fund
The working body of Republican budget commission
Provides for the submission to RBC of budget requests, draft strategic plans and budget programs
Develops the draft Law on Guaranteed Transfer from the National Fund
Forms the draft of the republican budget
Develops the draft Law on the Republican Budget

11. Budgeting is implemented within the framework of fiscal rules
The New National Fund Concept is adopted in 2016
1. Reduction of the budget dependence on oil revenues
Non-oil deficit – the main "anchor" of fiscal policy
Reduction of non-oil deficit to 7% of GDP in 2020 and up to 6% of GDP in 2025
2. Stabilization of the National Fund's assets
Reduction of the guaranteed transfer from the National Fund to the budget from 8 to 6 billion U.S. dollars from 2020
3. Ensuring the public finances sustainability
Maintenance of The National Fund assets – at least 30% of GDP

12. Introduction of “Open Government”
The Law on Access to Information was adopted in 2015
Openness of information on the formation and expenditure of funds of the republican and local budgets
The portals "Open Data", "Open normative legal acts", "Open Budgets", "Open Dialogue", " Assessment of State Bodies Efficiency “ are launched
Internet portal «Open budgets» (draft budget programs, approved budget programs and reports on their implementation, definitions of budget terms, infographic, results of state audit and financial control)
Public discussion of budget programs is conducted
Prepares «Citizens budgets»
Similar information is posted on the Internet resources of government agencies 

13. Expansion of citizens participation in the budget discussions
The Law on Public Councils was adopted in 2015
They express the opinion of civil society, ensure public control, accept citizens' appeals and consult them, make proposals
229 public councils have been formed with central and local government bodies
Representatives of civil society are 76% of the public councils at the local level
Since 2016 the heads of state bodies hold annual report meetings with population, and the meetings are broadcasted online
Since 2018 an independent Local Self-Government Budget has been introduced at the level of villages (with a population of at least 2 thousand people)
The population in the villages directly participates in the formation of the draft local self- government budget and consideration of its execution report

14. Future plans Further improvements of performance budgeting tools
Possible revision of the budget process stages and their harmonization - start the budget process not from the limits, but from the strategic plans
Assessment of the long-term public finances sustainability
Improvement of the Government Agencies Performance Efficiency Assessment and better application of the Assessment in budgeting
Increasing openness and transparency
Citizens budgets development

15. Thank you for your attention!