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Senate of the Parliament
of the Republic of Kazakhstan

News

Senators reviewed reports on budget execution in 2020

17.06.2021 81

Today, a meeting of the Chamber chaired by Speaker of the Senate Maulen Ashimbayev was held, where the senators considered the reports of the Government and the Accounts Committee on the execution of the Republican budget for 2020.

During the report, the Speaker of the Senate emphasized that last year was extremely difficult and during the pandemic, the Parliament actively worked with the Government to overcome the consequences of the coronavirus crisis. For the legislative support of the work being carried out, the MPs promptly adopted important laws.

“Currently, the situation is gradually stabilizing. Over the five months of this year, the economy has grown by 1.6%. Thus, all of us, members of the Government and the Parliament need to work together on the tasks of the next stage set by the Head of State. These are the tasks of restoring the rates of economic growth and improving the living standards of our citizens,” Maulen Ashimbayev said.

During the meeting, the most problematic issues related to the execution of the republican budget were identified. Among them are non-utilization or poor-quality utilization of funds, an insufficient level of transparency in the implementation of a number of programs. The Speaker of the Senate also noted a number of shortcomings in the work of state bodies, which led to the fact that not all the money allocated by the state to support citizens reached the recipients.

Maulen Ashimbayev again reminded the members of the Government of the importance of ensuring a balance between budget revenues and expenditures because, over 5 years, the volume of expenditures of the republican budget has almost doubled. At the same time, only 44% of expenses are covered by “net income”, the remaining 36% are transfers from the National Fund and 20% are loans.

“I am worried about the growth of the budget deficit. This trend needs to be reversed. We talked about this in May when we were considering amendments to the budget. We must live within our means, not accumulating unnecessary debts and not wasting the fund of future generations,” Maulen Ashimbayev said.

The Senate Speaker proposed to optimize and reduce inefficient spending to ensure a balanced budget. He cited the data of the Accounts Committee, according to which last year almost 570 billion KZT were ineffectively used or not used at all. Compared to 2019, this figure has increased by 33%.

“In recent years, significant funds from the republican budget have been directed to finance the subjects of the quasi-public sector. In 2020, this figure amounted to more than 817 billion KZT. At the same time, significant amounts of ineffectively used funds are simultaneously recorded. According to the results of the audit, which covered 25 subjects of the quasi-public sector, the Accounts Committee revealed violations for almost 380 billion KZT. We ask the Government to take appropriate measures to the responsible persons and pay attention to the prevention of such violations in the future,” the Chairman of the Chamber said.

In the senators’ opinion, privatization of a number of objects should also help to reduce ineffective budget expenditures. Maulen Ashimbayev urged to accelerate its pace and ensure openness and transparency of all procedures.

Another proposal of the Speaker of the Senate is to increase the share of funds invested in economic growth in the country’s budget.

“According to the estimates of the Accounts Committee, at the end of 2020, 61% of budget expenditures fall on current needs. Only 15% are directed towards development goals. In our situation, when “net income” from the economy does not cover budget expenditures, it is necessary to actively invest in growth drivers - construction or reconstruction of industrial enterprises, in infrastructure, communications, lending, and business subsidies,” Maulen Ashimbayev said.

The Chairman of the Senate noted the readiness of the senatorial corps to provide the necessary support for the Government’s initiatives aimed at solving the identified problems.

It should be noted that the final consideration of the report on the execution of the budget for 2020 will take place at a joint meeting of the Chambers of Parliament, which will be held on June 21, 2021.

Today the senators also considered and adopted the Law “On State Courier Communications”, as well as the Law “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the Activities of State Courier Communications and Internal Affairs Bodies.” It is aimed at the consistent implementation of the mechanisms of the police service model and consolidation of the powers of the fire service bodies.

(Press Service of the Senate, 74-72-27. Photo: Y. Ukibayev, N. Baibulin)

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