Uzbekistan
In Uzbekistan, according to the Law «On the Budget System», the Ministry of Finance sends budget requests to its regional divisions and republican budget recipients, who make decisions on the preparation of their budgets and initiate budget requests to the districts and their state employees. This is true across the entire vertical of the budget system. At the same time, budget expenses are planned on the basis of legally established standards and actual expenses for the previous year.
The Ministry of Finance prepares a draft State Budget in accordance with the submitted applications of recipients of budget funds and draft local budgets included in the structure of the state budget. With this traditional approach, the targeted expenditure of funds is achieved. However, it is difficult to determine what results have been achieved. In recent decades, many countries have been trying to develop and implement mechanisms that will allow planning and use of public funds in relation to results. That is, take into account not only where and what the money was spent on, but also what the final result was obtained.
The new methodology introduced several conceptual innovations in budget planning and execution.
Firstly, it is a clearer, presented in the context of government policies and a more transparent budget. In France it has a 3-tier structure. The first level includes 34 missions (education, culture, research and higher education, ecology, etc.), corresponding to government policy priorities. Each mission is divided into programs — this is the second level. For example, the mission «Research and Higher Education» includes 10 programs: higher education and university science; student life; interdisciplinary scientific and technological research; research in environmental and resource management; space research; research and higher education in economics and industry. The third level is projects that determine the areas of spending. Parliament approves the budget by mission. It can reallocate funds between programs within the same mission.
Secondly, the budget is aimed at achieving results. This provides that during its planning and discussion in Parliament, the results that will be achieved within the framework of each budget program are considered. And here indicators are important that will allow you to evaluate the results achieved. As an example, we can return to the French experience. Thus, the mission “Research and Higher Education” includes a number of research programs in various fields, including the scientific activities of universities. Indicators for assessing its results are the number of publications in well-known world publications, the number of references in articles of leading world publications to university publications and research, etc.
A results-based budget allows for more flexible management of budget funds. The implementation of each program is the responsibility of its manager, who is appointed by the relevant minister. He can redistribute funds within the program — between projects and sections. Thus, in order to achieve results, flexible use of budget funds is allowed. At the same time, this opportunity provides for increased responsibility for achieving results.
Thirdly, the reform provides reliable and more complete information about the financial condition of the state, and fourthly, a new culture of public finance management.
Azerbaijan
The budget system of Azerbaijan consists of the state budget of Azerbaijan, the budget of the Nakhichevan autonomy and local budgets.
The state budget of Azerbaijan is the main financial document of the country for collecting and using the necessary funds for the implementation by the relevant state authorities of Azerbaijan and self-government bodies of the responsibilities and functions of the state and municipalities. The budget includes an annual financial plan. The annual period runs from January 1st to December 31st. On July 2, 2002, the law of the Republic of Azerbaijan on the budget system was adopted.
The purpose of the state budget system is to solve social, economic, and other programs, ensure collection in the manner established by law and use material resources for the implementation of government functions.
Budget revenues are all duties, taxes and other payments received by the state budget, the budget of the Nakhchivan Autonomous Republic and local budgets in the manner prescribed by law.
Budget expenses are funds that are allocated in accordance with the budget classification from the state budget, the budget of the Nakhchivan Autonomous Republic and local budgets in order to meet the needs provided for by law.
A budget deficit is usually called the amount of budget expenditures that are not covered by revenues, and a surplus is the amount of budget revenues that exceed budget expenditures.
The unity of the budget system is based on the relationship between budgets through the use of regulatory sources of income and the creation of targeted budget funds. As well as the distribution of financial resources between budgets of different levels. The same budget classification, the use of the same budget documents, and reports on budget execution ensure the unity of the budget system.
The budget system of the Nakhichevan Autonomous Republic is determined by the Constitutions of the Republic of Azerbaijan and the Nakhichevan Autonomous Republic, the law on the budget system, as well as other legislative acts.
The Cabinet of Ministers of the Nakhichevan Autonomous Republic draws up the budget of the autonomous republic and submits it for approval to the Ali Majlis of the Nakhichevan Autonomous Republic. Also, budget execution is carried out by the Cabinet of Ministers of the Nakhchivan Autonomous Republic.
The budget is formed from taxes and duties, which are determined by the Tax Code of the Republic of Azerbaijan and other payments. Budget funds are used to implement social and economic programs, finance activities to develop the region and improve the well-being of the population.
Kazakhstan
The budget planning process breaks down into several stages:
- Drawing up a draft budget;
- Consideration of the draft budget;
- Budget approval;
- Organization of budget execution and control over this execution;
- Conclusion of the budget, which includes the preparation and approval of a report on its execution.
Drawing up, executing budgets, drawing up reports on the execution of budgets are the functions of executive authorities, consideration and approval are the functions of Parliament and local representative bodies.
In the Budget Code, the stages of the budget process are regulated for each type of budget. The development of draft budgets begins with revenue forecasting, which is carried out by the authorized body for budget planning on the basis of a medium-term plan for the socio-economic development of a country or region and medium-term fiscal policy. The same body, on the basis of fiscal policy, creates a limit on budget expenditures and communicates them to the administrators of current budget programs and budget development programs.
References:
- https://www.gov.kz/
- http://www.uzdaily.com/
- https://unec.edu.az/
