The Main Problems of Economic Development of Kazakhstan's Regions

Topics: Economics, Local government, Tax Pages: 36 (11962 words) Published: August 1, 2010
The economic framework of local governance

The economic foundations of the local government of the Republic of Kazakhstan are: - Municipal property;
- Local finance;
- Property in state ownership and transferred to the management of local governments.

The material and financial resources, which are the economic foundation of local government, determine in fact the efficiency of local government. The economic foundation for local governance is a set of legal norms that regulate social relations and which in turn, linked to the development and use of municipal property, local budgets and other local finance in the public interest the municipality [2]. Economic fundamentals provide the economic independence of local government, serve the needs of the population and create conditions for its life. Strengthening and development of the economic foundations of local government greatly affect the economic situation in Kazakhstan in general. This suggests that public authorities should promote the economic foundations of local self-government. In accordance with the Constitution of the Republic of Kazakhstan authorities ensure: - Regulation by law, order, transfer the state property in the municipal; - Transfer to local government material necessary for the implementation of specific state powers which may be vested by law with these bodies; - Participation in solving problems through targeted regional programs; - Compensation to local authorities the additional costs arising from the implementation of government decision-making; - Development of state minimum social standards.

Local finance is an economic relationship, through which local governments mobilize, allocate and use in accordance with the functions entrusted to them part of the social product in the form of money. Local finance is an important component of the financial system of the state. They include local budgets, special off-budget funds and finance businesses owned by local governments. Local budgets are the foundation of the budget system, which is not strengthened, it is impossible to radically improve the budgetary relations in accordance with the functions assigned to each level of government. Local budgets as an essential component of the regional finance, money funds are administrative-territorial units, approves the decision of the maslikhat, formed from the income and deficit financing (the use of surplus) budget for the financing of local budget programs in education, health, culture and sports, social welfare, etc. [1]. In this regard, the role of regional finance increases, and the scope of their use expands. From the local budgets were financed major health facilities, arrangements for internal security, rule of law, protection of the environment. Through local budgets are being implemented part of national programs and activities. The law lays down the principle of clear division of responsibility for the expenditure of budgetary funds between government agencies of national and local levels. In world practice, the income of local budget consists of four main components: taxes, subventions from the republican budget, non-tax revenues and borrowings. Due to the fact that the growth rate of expenditure of local budgets are sometimes higher than the growth of their income, there is a need for transfers from the republican budget, which reflect the "external" financial cooperation in the region. Intergovernmental transfers (grants) to help solve various economic tasks, the most important of which are: - Implementation of the planned development strategy of the State; - Alignment of the level of socio-economic development of regions, reaching the minimum guaranteed level of living; - To balance revenue and expenditure of local budgets;

- Compensation for the additional costs of the regional budgets, due to various reasons [3]. At the local government tasked to implement the social programs of the state. Generally funding for...
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