Scientific journal
European Journal of Natural History
ISSN 2073-4972

THE PRIOR DIRECTIONS OF EXPENSES OF THE STATE BUDGET OF THE REPUBLIC OF KAZAKHSTAN

Lashkaryeva O.V. 1 Karandeyeva K.I. 1
1 L.N. Gumilyov Eurasioan national university
1. The message of the President of the country N.A. Nazarbayev to people of Kazakhstan «Kazakhstan-2030: Prosperity, a security and improvement of well-being of all Kazakhstans». – 1997. – 30 p. – http: // www.minplan.kz.
2. The state budget of the Republic of Kazakhstan for 2009-2011. – 3 p. – http: // www.minfin.kz.
3. The basic macroeconomic parameters of the Republic of Kazakhstan. – 3 p. – http: // www.cisstat.com.
4. A demographic year-book of Kazakhstan // the Statistical digest / under edition of A.A. Smailov. – Astana, 2011. – 592 p.
5. The information on key parameters of the republican budget for 2012-2014. – 28 p. – http: // www.minfin.kz.

Kazakhstan was the first post-Soviet countries have chosen the path of strategic planning, which includes long-term priorities of the country development. The long-term priorities are permanent guidelines in formulation of plans and programs for the development of the country for the near future.

The first document describing the development of the Republic of Kazakhstan for the long term, was the Strategy «Kazakhstan-2030», which, as is known, consists of the following seven basic priorities: National security; Internal political stability and consolidation of society; Economic growth, based on an open market economy with high level of foreign investment and internal savings; Health, education and wellbeing of citizens of Kazakhstan; Energy resources; Infrastructure, particularly transport and communication; Professional state [1, p. 10].

Long-term priorities laid down in the Strategy of development «Kazakhstan-2030» are specified annually, depending on the situation within the country and abroad, and are told by the President in his message to the people of Kazakhstan.

The state budget is a tool for the implementation of the Strategy «Kazakhstan-2030», so the functional expenditure correspond to the priorities of the Strategy, the amount of which for 2009–2011 [2, p. 1] is presented in table 1:

Table 1

Financing long-term priorities by state budget, mln. tenge

Functional expenditure of state budget

2009

2010

2011

Priorities of the strategy «Kazakhstan-2030»

2009

2010

2011

Defense

187 615,3

221 345,1

264 503,3

National security

503 805,0

590 121,4

712 998,6

Public order and security

316 189,7

368 776,3

448 495,3

Agriculture, water, forestry and other household

168 117,9

207 073,8

270 763,4

Economic growth based on an open market economy with high level of foreign investment and domestic savings

268 245,5

329 926,6

417 255,3

Manufacturing and construction

30 920,7

28 236,0

24 816,7

Debt service

69 206,9

94 616,8

121 675,2

Education

660 917,1

755 294,8

986 773,4

Health, education and welfare of citizens

2347784,9

2773612,3

3 337 534,1

Healthcare

450 892,5

551 325,7

626 309,9

Social security and social aid

758 308,4

905 272,7

1 133 573,0

Housing and public utilities

304 048,8

334 154,8

389 238,2

Culture, sports, tourism and information freedom

173 618,1

227 564,3

201 639,6

Fuel-energy complex and usage of mineral resources

58 577,0

79 720,0

112 490,7

Power resources

58 577,0

79 720,0

112 490,7

Transport and communication

337 511,5

390 669,5

449 210,7

Infrastructure, particularly transport and communication

337 511,5

390 669,5

449 210,7

State services of general nature

166 062,7

224 944,3

296 481,2

Professional state

230 916,1

293 114,7

393 745,1

Others

64 853,4

68 170,4

97 263,9

Total

3 746 840,2

4 457 164,6

5 423 234,6

Total

3 746 840,2

4 457 164,6

5 423 234,6

Note – Compiled and calculated by the data of the State budget of Kazakhstan for 2009-2011.

The calculated data in table 1 shows that the long-term priorities of the Strategy «Kazakhstan-2030» depending on the amount of the allocated state budget funds, can be ranked in the following order: Health, education and welfare of Kazakhstan citizens; National Security; Infrastructure, in particular transport and communication; Economic growth based on an open market economy with high levels of foreign investment and domestic savings; Professional state; Energy resources. This ranking once again emphasizes the social orientation of the budget.

However the priority of one or the other direction of budget spending can be determined due to the rates of growth of their share in the total amount of expenses of the state budget.

With this purpose we give the analyzed data for the years 2009–2011 in a comparable form through the consumer prices index (coefficient-deflator), which in 2010 was 107,1 % of (or 1,071), in 2011 – 108,4 % (or 1,084) [3, p. 1]. Then define the weight of each article in the context of the priorities of the Strategy «Kazakhstan-2030», as well as the growth rate of the share of a particular long-term priority of the Strategy. Such calculations are shown in table 2.

Table 2

Structure and growth rate of specific weights of the expenditure volume of the state budget in the long-term priorities, adjusted for the coefficient-deflator

Priorities Of The Strategy «Kazakhstan-2030»

2009

2010

2011

The absolute increase of weights, %

The growth rate of weights

mln. tenge

sp. g, %

mln. tenge

sp. g, %

mln. tenge

sp. g, %

2010-2009

2011-2010

2010/

2009

2011/

2010

National security

503 805,0

13,4

551000,4

13,2

657747,8

13,1

-0,2

-0,1

0,99

0,99

Economic growth, based on an open market economy with high level of foreign investments and domestic savings

268 245,5

7,2

308054,7

7,4

384921,9

7,7

0,2

0,3

1,03

1,04

Health, education and welfare of the citizens of Kazakhstan

2347784,9

62,7

2589740,7

62,2

3078906,0

61,5

-0,5

-0,7

0,99

0,99

Energy resources

58 577,0

1,6

74435,1

1,8

103773,7

2,1

0,2

0,3

1,13

1,17

Infrastructure, particularly transport and communications

337 511,5

9,0

364770,8

8,8

414401,0

8,3

-0,2

-0,5

0,98

0,94

Professional state

230 916,1

6,2

273683,2

6,6

363233,5

7,3

0,4

0,7

1,06

1,11

Total

3 746 840,2

100,0

4161685,0

100,0

5002983,9

100,0

-

-

-

-

Note. Compiled and calculated by the data of the State budget of Kazakhstan for 2009-2011.

These calculations give a sense of the priority items of state funds’ expenditure:

1. Thus, for example, a long-term priority «Health, education and well-being of Kazakhstan citizens» takes the greatest fraction in 2009-2011 in total amount of expenses of Republic of Kazakhstan’s state budget, despite the annual decrease. Relative density of given item in 2010 in comparison with 2009 had decreased to 0,5 % and had made 62,2 %, so the rate of growth was equal to 0,99. In 2011 relative density had decreased to 0,7 % and made up 61,5 %, and rate of growth remained at a former level – 0,99;

2. The long-term priority «National security» is the second according its priority of spending the means of Republic of Kazakhstan’s state budget. In 2009 relative density had made 13,4 %, in 2010 had decreased on insignificant percentage – 0,2 % and then became 13,2 %. In 2011 relative density of the item continued to decrease, reduced to 0,1 % and in the end of the period constituted 13,1 %. In 2010-2011 rate of growth had made 0,99;

3. Next on the priority of the expenditure of means of Republic of Kazakhstan state budget is «Infrastructure, in particular transport and communication». Relative density of given item for 2009-2011 underwent annual decrease. Thus in 2010 it had decreased to 0,2 %, made up 8,8 %, rate of growth was equal to 0,98. In 2011 the decrease in relative density of article had occurred, decreased to 0,5 %, rate of growth was equal 0,94;

4. The long-term priority «Economic growth, based on open market economy with a high level of foreign investments and internal savings» owing to the volume of relative density for 2009-2011 takes the fourth place on priority of the budgetary funds expenditures. If relative density of the given item in 2009 made up 7,2 %, in 2010 – 7,4 %, and in 2011 – 7,7 %. Rates of growth were 1,03 and 1,04 accordingly;

5. Next according to the priority of expenditure of Republic of Kazakhstan state budget is the item «Professional state» on fraction of which is 6,6; 7 and 7,3 % respectively by the years.. Rate of growth in 2010 had made 1,06, in 2011 this figure increased up to 1,11;

6. The lowest value on the priority takes group «Power resources». Relative density of the given priority in total amount of expenses of Republic of Kazakhstan state budget in 2009 had made only 1,6 %, in 2010 increased for 0,2 %, that is up to 1,8 %, rate of growth is equal 1,13. In 2011 – on 0,3 %, which made 2,1 %. Rate of growth is equal 1,17.

Proceeding from the made analysis, it is possible to emphasize once more the priority of a social orientation of Republic of Kazakhstan state budget in dynamics. Consequently, effective and rational use of budgetary funds of social area is one of the prominent aspects in activity of the state.

At the same time efficiency of expenses from the social point of view can be calculated by coefficient of budgetary security of the population (Cbsp) which is equal to the ratio of the budget expenses for the period and a population in the given period.

The relation of the state budget for the long-term priority, «Health, education and welfare of the citizens of Kazakhstan» and the population during 2009-2011 should be determined for calculation of this indicator [4, p. 8]. Calculation of the budget sufficiency of the population for the years 2009-2011 is shown in table 3:

Table 3

Calculation of the budget sufficiency of the population of Republic of Kazakhstan

Expenditure on Health, education and welfare of Kazakhstan citizens, mln tege

Population, mln people

Cbsp, tenge/person

The rate of growth of coefficient of Cbsp

2009

2010

2011

2009

2010

2011

2009

2010

2011

2010/2009

2011/2010

2347784,9

2589740,7

3078906,0

16,2

16,4

16,7

144925

157911

184366

1,1

1,2

Note. Compiled and calculated by the data of the State budget and Statistical digest of Kazakhstan for 2009-2011.

Analyzing the data given in table 3, it is possible to note the tendency of growth of budgetary sufficiency of the population for 2009-2011: pace of growth in 2010 made 1,1, in 2011 increased up to 1,2. Thus in 2009 on 1 person 144925 tenge were accounted, in 2010 – 157911 tenge or growth made 9,0 %, in 2011 – 184366 tenge with growth on 16,8 %. The growth of such annual financial maintenance allows to judge about the efficiency of the state expenditure on social area in general.

In 2012 expenses of the state budget are aimed on improvement of life conditions of the population and preventing the growth of unemployment, increase of wages, support of small and medium business, development of agriculture, etc. Thus the state expenditure on social area in 2012 will make 3 377 200,0 million tenge – about 53 % of all expenses, and the growth in comparison with 2011 will make 9,7 % [5, p. 3].

Such dynamics allows concluding, that expenses of the state budget of Republic of Kazakhstan for 2009-2011 have strongly expressed social character and in 2012 financing of social area on account of the State expenditure remains the same prior direction. Increase of budgetary funds use efficiency will be reached due to growth of quality of state services to the population, maintenance of the employment, available housing and qualitative growth of the human capital in Kazakhstan.

Thus, the social orientation of the budget in intermediate term prospect will be kept and the basic priority at planning the state expenditure will be well-being of Kazakhstan citizens, namely their social support, health and formation, as well as creation of conditions for qualitative growth of economy.

The work is submitted to the International Scientific Conference «Science and education in modern Russia», Russia (Moscow), November, 20-12, 2012, came to the editorial office оn 14.11.2012.