Today at the meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev, Minister of National Economy, Timur Suleimenov, and Minister of Finance, Bakhyt Sultanov, reported on the implementation of the fourth level of the budget and communal property for local governments.

According to Timur Suleimenov, within the framework of the 98th step of the Nation’s Plan "100 Concrete Steps," the Law on the Development of Local Governments was adopted, which envisages the introduction of a level IV budget and communal property of local governments at the level of a city of district significance, small town, village, rural district.

"Since January 1, 2018, the local government budget as the 4th level of the state budget has been introduced in 1062 rural districts with a population of more than 2 thousand people, and from January 1, 2020, it will be introduced everywhere," said Timur Suleimenov.

According to the Minister of National Economy, the introduction of an independent budget has expanded the financial possibilities of rural districts and strengthened the role of local governments in addressing issues of local importance by getting taxes directly to their budget.

7 types of tax revenues and other non-tax revenues were transferred to the rural district budget, as well as 19 areas of expenditure.

With a view of qualitative practical realization of the Law, the Action Plan on introduction of the independent budget and municipal property of local government has been approved. The majority of measures have been adopted. The MNE RK in the second half of this year will continue to train akims of rural districts and their staff in regions where the IV level of the budget is implemented.

Timur Suleimenov noted that during the implementation of the Action Plan, the number of unregistered real estate objects decreased from 88.2 thousand to 13.6 thousand. According to the Minister of National Economy, the presence of unregistered real estate can lead to inadequate taxes in the budgets of rural districts. In this regard, the importance of strengthening the work of akims, together with the justice bodies, on explaining the requirements of legislation among the population about the need to submit documents for state registration of rights is indicated.

In addition, in the course of systematic work, the number of incomplete information and errors in databases decreased from 2.3 million to 294 thousand.

To date, the preparatory work for the integration of the following databases and information systems has been completed: the Real Estate Register of the Ministry of Justice and the Register of Taxpayers and Objects of Taxation of the Ministry of Finance; Service Center of the Ministry of Internal Affairs and the system of the Ministry of Justice "Individuals" and "Legal Entities"; Land Cadastre of the Ministry of Agriculture and “Register of Taxpayers ...” of the Ministry of Finance.

The full integration of the system of the Ministry of Agriculture "Land Cadastre" with the database of the Ministry of Justice "Real Estate Register " is expected before the end of the first half of this year.

"This is not the end of the work on the development of local governments. Currently, the implementation of a new level of budget and municipal property in rural districts is being analyzed. On its results, measures will be taken to eliminate the problems that arise, and further measures will be taken to develop the institute of local governance, including the transfer of additional tax and other income for effective and independent resolution of local issues," T. Suleimenov summed up.

Minister of Finance, Bakhyt Sultanov, reported on ensuring the receipt of taxes in the budgets of rural districts.

In general, overfulfilment of income was achieved for all level IV budgets. According to the Ministry of Finance, for the first quarter of this year, actual revenues amounted to 27.7 billion tenge. Of these, tax revenues – due to 118.5% overfulfilment of the reporting period plan amounted to 5.2 billion tenge. Non-tax revenues – 3.1 billion tenge, including 3 billion tenge – last year's balances on the accounts.

The actual expenses in total amounted to 21.9 billion tenge or 98%of the plan for the reporting period. The main types of expenses: preschool education and training, provision of medical services in organizations; street lighting in settlements; support of cultural and recreational work, etc. The plan for the targeted current transfers amounted to 1.2 billion tenge. Actual balances amounted to 5.7 billion tenge.

In addition, B. Sultanov noted that the bill on public procurement for rural districts increased the threshold value to 3000 MCI (6.8 million tenge). This will allow local governments from one source to conclude contracts directly with the supplier.

In conclusion, the Minister of Finance assured that the work carried out at the local governance level is based on personal constant control and monitoring.

Also in the course of the meeting, reports of akims of a number of regions: East Kazakhstan –  D. Akhmetov, North Kazakhstan – K. Aksakalov, Kyzylorda – K. Kusherbayev, were heard.

Following the consideration of the issue, the Prime Minister Bakytzhan Sagintayev noted that the stages of development of local government are defined in the Concept of Local Government Development until 2020approved by the Head of State, and also gave a number of specific instructions.

The Ministry of National Economy has been instructed to monitor and analyze the development of local government on an ongoing basis.

The Ministry of Finance must complete all preparatory measures to ensure the proper functioning of information systems for working with the budget of rural districts.

The Ministry of Information and Communications was instructed to accelerate the work on the integration of relevant information systems of authorized bodies.

The Deputy Premier Erbolat Dossaev is responsible for coordinating the implementation of the fourth level of the rural districts budget.

 

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