Effective use of budgetary funds of the Republic of Kazakhstan

The relevance of the study of the topic Efficient use of budgetary funds of the Republic of Kazakhstan is due to the need to select priority areas for improving the treasury system of the Republic of Kazakhstan in new economic conditions, according to which economic development should focus on the introduction of innovative technologies, high growth rates of labor productivity and the creation of economic non - primary type models, while one of the key success criteria is to increase the effect budget utilization.

Dependence on exports of raw materials and hydrocarbons puts the economic development of the Republic of Kazakhstan in a vulnerable position due to the fact that the state budget income level depends on fluctuations and jumps in world oil prices, which makes it difficult to implement and sometimes impossible to plan further development and implementation of important state programs. This problem is becoming more urgent as the latest developments in the use of alternative energy sources in the world, when the consumption of traditional energy sources is declining and trends for falling oil prices are outlined.

In this regard, the search for approaches and ways aimed at improving the mechanism of using budget funds, which are able to provide optimal solutions for reallocating state budget funds in accordance with the risks of falling demand and world oil prices, as well as using budget management tools, is highly relevant taking into account the prospects for the development of a high-tech economic model. A smooth transition from the economy based on the raw material model to the high-tech industry of the future with the use of advances in technology based on artificial intelligence and robotics will provide the Republic of Kazakhstan with a decent future and the possibility of further development and prosperity among the most developed countries in the world.

The mechanism of budget planning and use of budget funds in these conditions can be used as a tool for redistributing revenues to the budget and budget funds, which can be redirected and redistributed to the development of industries and science, the development of which will ensure the independence of the Republic of Kazakhstan of exports and re-export of raw materials, hydrocarbons and other natural resources. Today, an important resource on the way to achieving a higher level of well-being and gaining potential for new breakthroughs in the field of high technologies is to increase the efficiency of using budget funds in the treasury system of the Republic of Kazakhstan.

The functioning of the treasury system in the process of planning, executing and using the funds of the state budget of the Republic of Kazakhstan should be considered in terms of the main modules, each of which includes a set of functions, processes and operations aimed at implementing the budget policy of the Republic of Kazakhstan.

From the point of view of analyzing and evaluating the effectiveness of using budget funds in the context of the functioning of the treasury system, it is necessary to identify and streamline the main processes and operations within the framework of using budget funds. To do this, it is necessary to consider one of the strategic goals of the Government of Kazakhstan and a number of related budget programs that contribute to its implementation, namely, to justify an assessment of the effectiveness of the use of budgetary funds, which was produced on the South-West: Western Transit Corridor road construction project.

The project was financed by financing by the European Bank for Reconstruction and Development, which was created to provide financial resources for projects aimed at transition to an open market economy oriented towards the development of international trade, private and business initiatives in the regions of Central Asia and Eastern Europe.

The project "Western Europe - Western China" is a transnational infrastructure project and is a transport corridor (highway), running from Western China to Northern Europe.

The goal of the project is to strengthen the ties between the European Union and Asia.

Characteristics and parameters of the length of the highway:

- total length of highways of St. Petersburg- Lianyungang: 8445 km;

- length of the highway of the Russian Federation: 2233 km;

- length of the highway of the Republic of Kazakhstan: 2787 km;

- length of the highway of the Peoples Republic of China: 3425 km.

Construction began in 2008. The section of the highway China - Republic of K azakhstan has already been commissioned [1].

The Republic of Kazakhstan occupies an extremely favorable geographical position from a geopolitical and economic point of view, which allows it to play the role of a transit bridge between Asia and the European Union, as well as between China and Russia, the largest economic zones of modern civilization. This determines the high transit potential and provides opportunities to use the territory of the country to organize transit traffic in order to ensure high turnover in the scale of continental international trade. In addition, modern Kazakhstan has the necessary potential for a complete reorientation of the foreign trade balance, which also lies in the transit possibilities of the state.

One of the promising ways and directions is the international transit corridor Western Europe - Western China.

The completion of the construction of the highway in the Republic of Kazakhstan is scheduled for the end of 2019. At the final stage of the construction of the highway, work is underway to lay the roadway between Shymkent and Taraz, as well as from Almaty to the border with the People's Republic of China.

Full completion and commissioning of the highway is planned in 2030, with the main section to be completed located in the central regions of the Russian Federation.

During the negotiations, the European Bank for Reconstruction and Development provides a loan to the Republic of Kazakhstan in the amount of USD 1,800,000,000 or 68.07 billion tenge (the rate is 378.17 tenge for 1 US dollar).

The aim of the project is the reconstruction, restoration and upgrading of the technical category of a 102 km long highway connecting the city of Aktobe with the border of the Russian Federation and running through the village of Martuk [2].

External financing plays a significant role in the budget execution process of the Republic of Kazakhstan. At the same time, the procedure for borrowing, directions of use and methods of repayment of foreign loans are established by the Government of the Republic of Kazakhstan [3].

Figure 1 shows the pattern of spending of external loan funds by the method of direct payment in the framework of the use of budget funds for the implementation of the highway segment of the international transit corridor Western Europe - Western China.

Figure 1 - The scheme of expenditure of external loans by direct payment in the framework of the use of budgetary funds

As executives of budget programs, there may be central executive bodies vested with authority and performing planning functions in the use of budget funds, as well as coordinating and controlling the use of budget funds. In addition, administrators of budget programs, which are, in particular, the Committee for Roads and the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan, can use budget funds within approved programs independently, and the role of the Treasury Committee is to create Special Accounts for further use of budget funds.

The scheme of using budgetary funds by spending funds from the Special Account is shown in Figure 2.

Figure 2 - The scheme of use of budgetary funds from the Special Account

The European Bank for Reconstruction and Development acts as a lender in the framework of project financing. Completion of the project is planned for the end of 2019.

The procedure for repaying the government and state-guaranteed debt of the Republic of Kazakhstan from the republican budget is reflected in the form of a diagram presented visually in Figure 3.

Figure 3 - The procedure for repayment of government and publicly guaranteed debt of the Republic of Kazakhstan from the republican budget

The specifics of accounting and financial reporting in project management at the expense of external financing has its own distinctive features and features.

The procedure for maintaining the budget accounting of execution of the republican and local budgets is determined by the Ministry of Finance of the Republic of Kazakhstan, and budget accounting is the responsibility of the Treasury Committee of the Ministry of Finance of the Republic of Kazakhstan.

The Treasury Committee implements an orderly system of collecting, registering and summarizing information in monetary terms about transactions from a single treasury account, control cash accounts and government institutions, requirements and obligations of the Government of the Republic of Kazakhstan and local executive bodies, regulated by the budget legislation of the Republic of Kazakhstan.

Budget accounting is the accounting of budget execution carried out on a cash basis, in which operations are reflected in the accounts in a double-entry manner in accordance with the chart of accounts.

Budget accounting is conducted in the national currency of the Republic of Kazakhstan.

The scheme for managing the reporting on the republican budget of the Treasury Committee is presented in the form of a diagram, which is clearly shown in Figure 4.

Figure 4 - Report management scheme for the Republican budget of the Treasury Committee

The financial resources of the European Bank are usually mobilized in the financial market through the issuance of bonds, and the value of EBRD loans can be determined in accordance with the market conditions.

It is important to note that making a profit is not a key priority for the EBRD, and most of the lending and investment programs that a bank makes are always profitable. Interest rates on loans for governments of different countries are usually 0.25 - 0.5%, which is much lower than the loan rates provided for in the framework of the national banking systems of various countries and states. EBRD loans can be granted on repayment terms for a period from 12 months to 20 years, and also provide for preferential terms and periods, which can range from 3 to 6 years, which also exceeds the terms of bank loans. For countries with a developing economy, lending rates of up to 2% per annum are stipulated, which is due to low ratings and high risks of loan default, or delay in repayment of loans by the due date. In particular, the loan received under the project was issued at 2% per annum for a period of 19 years. The length of the loan period is due to delays in the construction of the highway on the territory of the Russian Federation [4].

As the main methodology in the performance assessment of the use of budgetary funds allocated for project implementation, methodologies were used to evaluate the effectiveness of achieving goals, which were approved as part of the order of the Ministry of Finance of the Republic of Kazakhstan No. 706 dated December 30, 2016 On Approval of the Methodology for Assessing the Efficiency of Goals (the order is registered in the Ministry of Justice of the Republic of Kazakhstan, February 8, 2017 No. 14781).

The calculation of performance evaluation indicators is made according to the formulas of the above methods of analysis and evaluation.

In order to assess the effectiveness of the use of budgetary funds, indicators are used:

Assessment by criterion Ai "Achieving the goal of a strategic plan" is calculated by the following formula (1):

Where:

hj is the achievement rate of each target indicator provided for in achieving the respective goal of the strategic plan;

m is the number of target indicators envisaged to achieve the corresponding goal of the strategic plan.

Wherein:

- if hj ≥ 1, then hj = 1,

- if hj <1 , then hj = the ratio of the fact to the planned value / the ratio of the planned value to the actual performance;

- if hj ˂ 0, then hj = 0.

In the case of the indicated facts, the result of reaching the target indicator hj is multiplied by a factor of 0.9 (except for the case of adjustments of the planned values of the indicator to the downside and / or their non-achievement (non-fulfillment of measures and obligations) due to factors independent of the activities of the state body (instructions of the Government, consequences of emergency situations).

Evaluation by the criterion Bi "Efficiency of the execution of budget programs in achieving the goal of the strategic plan"

By criterion Bi evaluates the effectiveness of the implementation of the planned results of the budget programs envisaged to achieve the strategic goal. Criterion Calculation Bi "The effectiveness of the implementation of budget programs in achieving the goal of the strategic plan" is carried out according to the following formula (2):

Where:

r_z - the coefficient of efficiency of execution of each budget program in achieving the goal;

t - the number of budget programs in achieving the goal.

The coefficient of efficiency of execution of each budget program in achieving the goal (r_z) is calculated by dividing the arithmetic average of the coefficients of achieving indicators of direct and final results by the coefficient of the budget program budget utilization.

In case of over-fulfillment of indicators of achievement of direct and final results, a value not exceeding 100% is taken into account by the indicator.

According to budget programs for which the use of funds was 90% or less, and the achievement of results is higher, the efficiency ratio of execution will be 0.9.

Evaluation of the "C_i" criterion The relationship of the objectives of the strategic plan with budget programs." The "_i" criterion assesses the degree of interconnection between the goal of the strategic plan and the indicators of budget programs implemented [5].

The ratio of the goals of the strategic plan with budget programs is determined by an expert, when analyzing each budget program for interconnection and compliance. The ratio of each goal is calculated by the arithmetic mean value of the relationship of all budget programs involved in its achievement.

The results of the calculation of achieving the objectives of the implementation of the strategic plan aimed at the implementation of the project are shown in Table 1.

Table 1. Analysis of the target indicators of achieving the goals of the strategic plan aimed at the implementation of the project for the construction of the motorway segment of the international transit corridor "Western Europe - Western China"

To assess the achievement of the goals of the strategic plan aimed at implementing the construction project, five target indicators were selected, ranging from 0 to 1 depending on the degree of compliance with the planned plan strategy and the degree of achievement of the final goal: the road surface readiness (0.99 in 2018); compliance with regulatory requirements and project documentation (0.97 in 2018);compliance with regulatory requirements in the field of ecology and environmental protection (0.97 in 2018); compliance with the construction budget (0.96 in 2018); meeting construction deadlines (0.98 in 2018). The final value of the indicator, reflecting the degree of achievement of the goal of the strategic plan based on the analysis at the end of 2018, is 0.97. In general, the strategic goals in the framework of the implementation of the strategic plan aimed at the implementation of the project should be considered achieved [6].

Table 2 shows the indicators for evaluating the effectiveness and execution of budget programs in achieving the goal of the strategic plan aimed at implementing the project.

Table 2 - Analysis of indicators for evaluating the effectiveness of the execution of budget programs to achieve the goal of a strategic plan aimed at implementing a project to build a section of a highway of the international transit corridor "Western Europe - Western China"

Thus, the budget programs developed in the field of road construction in 2016 fully activated only three of the seven programs:

- "Ensuring the functioning of information systems and information and technical support of the state body";

- "Development of transport infrastructure";

- "Ensuring the activities of the management apparatus for the effective performance of functions in the field of transport and communications."

In 2017, out of seven developed programs, 4 budget programs are fully operational, with three programs still at the testing stage:

- Ensuring the implementation of research projects carried out jointly with international organizations;

- "Ensuring the functioning of highways";

- "Services for the implementation of state policy at the local level in the field of transport and communications."

At the same time, the indicator of the effectiveness of budget programs is 0.91, which makes it possible to speak about the expediency of further utilization of budget funds that are used for their intended purpose and the use of budget funds within budget programs is effective.

As of the end of 2018, the performance indicator of budget programs in achieving the goal of the strategic plan aimed at implementing the project to build the highway section of the international transit corridor Western Europe - Western China is 0.96.

The calculation of the coefficient a of the interrelation of the goal of the strategic plan with budget programs is given in Table 3.

Table 3. Calculation of the coefficient a and the relationship of the objectives of the strategic plan with budget programs

Thus, the coefficient of the relationship between the goals of the strategic plan and budget programs is 0.89 in 2016; 0.92 in 2017 and 0.95 in 2018. The tendency of changes in the calculated values of the coefficient is positive, on the basis of which it can be concluded that the budget programs correspond to the goals of the strategic development plan aimed at implementing the project

The final calculation of the achievement of the goal of the strategic plan and the effectiveness of the implementation of the budget programs of central state bodies was made on the basis of the formula:

R_i = (A_i + B_i) / 2 × C_i (3)

where:

A i - the ratio of achieving the goal of the strategic plan;

B i - coefficient of efficiency of budget program execution in achieving the goals of the strategic plan;

C i - the ratio of the goals of the strategic plan to budget programs.

The results of the calculation are shown in table 4.

Table 4 - The final calculation of achieving the goal of the strategic plan and the effectiveness of the implementation of budget programs of central state bodies

According to the results of the calculations, the final calculation of achieving the goal of the strategic plan and the effectiveness of the execution of budget programs of central state bodies has unacceptably low values in 2016 (0.79) and in 2017 (0.85), while the dynamics of changes is positive and in 2018 the calculated the value of the coefficient is 0.92, which indicates a high efficiency of the execution of budget programs in the implementation of the strategic plan for the development of the project for the construction of a section of the international transit highway Corridor "Western Europe - Western China" [7].

In order to assess the role and importance of the treasury system, the coefficient R K is introduced - the final assessment of the effectiveness of the treasury system in using and assimilating funds from the republican budget in the framework of the implementation of strategic goals.

The calculation is made according to the formula:

R K = (0.5 × D K) + (L + Z + G) W (4)

Where:

R K - the final assessment of the effectiveness of the treasury system in the use and assimilation of funds of the republican budget;

D K - achievement of the goals set by the Treasury Committee within a specific project;

L - the absence of violations of budget and other legislation on the basis of audits of budget development programs by state audit and financial control over the period assessed ;

Z K - the achievement of direct results of the use of budgetary funds through the treasury system;

G K - the effectiveness of the execution of budget programs within the framework of the planned use of budget funds

W K - penalty points .

The assessment indicator provides the following states and degrees of efficiency of use of budgetary funds:

- 0 - 1 - inefficient use of budget funds;

- 1 - 2 - low efficiency in the use of budgetary funds, which is accompanied by the failure to achieve strategic goals and the incomplete implementation of budget programs;

- 2 - 3 - moderate efficiency: the final results of achieving the strategic goals and the full implementation of budget programs are possible in the medium or long term;

- 3 4 - acceptable efficiency: the achievement of strategic goals and the full implementation of budget programs are possible in the near future;

- 4 - 5 - high efficiency: strategic goals and full implementation of budget programs have been achieved;

Thus, the final assessment of the effectiveness of the use of budgetary funds in the process of planning, accounting and management of budgetary processes by the treasury system of the Republic of Kazakhstan is: 2.76 in 2016, 2.91 in 2017 and 3.14 in 2018.

The calculated value of the indicator characterizing the final efficiency of use and assimilation of funds from the republican budget within the framework of the strategic goals of the Government of the Republic of Kazakhstan, which are aimed at implementing the project to build the highway section of the international transit corridor Western Europe - Western China through the functioning of the treasury system in the form of a Committee Treasury Department of the Ministry of Finance of the Republic of Kazakhstan and the Treasury Department Nur-Sultan is equal to 3.14, which corresponds to acceptable efficiency: the achievement of strategic goals and the full implementation of budget programs are possible in the near future.

REFERENCES

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