Budget Code of the Republic of Kazakhstan
Unofficial translation
Code of the Republic of Kazakhstan dated 4 December, 2008 No. 95-IV.
Unofficial translation
Footnote. The table of contents is excluded by the Law of the Republic of Kazakhstan dated 30.06.2021 No. 60-VII (effective ten calendar days after the date of its first official publication).
Footnote. Throughout the text, the words “aul (village)”, “aul (rural)”, “aul (rural)”, “auls (villages)”, “aul (rural)” are replaced by the words “village”, “rural”, “rural”, “villages”, “rural” in accordance with the Law of the Republic of Kazakhstan dated 03.07.13, No. 121-V (see the old. ed.).
This Code regulates budget, intergovernmental fiscal relations, set out the main provisions, principles and mechanisms of the budget system, the formation and use of budget funds, as well as the formation and use of the National Fund of the Republic of Kazakhstan.
GENERAL PART
Section 1. BUDGET SYSTEM
Chapter 1. GENERAL PROVISIONS
Article 1. Budget legislation of the Republic of Kazakhstan
Judicial system financing aspects are regulated by the Constitutional Law of the Republic of Kazakhstan On the Judicial System and the Status of Judges of the Republic of Kazakhstan.
Footnote. Article 1 as amended by the Law of the Republic of Kazakhstan dated 20.12.2021 No. 83-VII (shall be enforced from 01.01.2022).
Article 2. Effect of the budget legislation of the Republic of Kazakhstan
2-1. The provisions of this Code shall apply to the financing of the judiciary system in the part not regulated by the Constitutional Law of the Republic of Kazakhstan On the Judicial System and the Status of Judges of the Republic of Kazakhstan.
The effect of application to the Law on the republican budget (maslikhat decision on the local budget) in the second and third years of the planning period shall become inoperative with the enactment of the Law on the republican budget (maslikhat decisions on the local budget) for the next planning period.
Footnote. Article 2 as amended by the Law of the Republic of Kazakhstan dated 20.12.2021 No. 83-VII (shall be enforced from 01.01.2022).
Article 3. The basic definitions used in this Code
1) The aval–a promissory note guarantee, in which a person, committing it, shall assume an obligation for effecting a payment on a promissory note (in full or in part) for any person, who is liable for the bill;
2) untied grants – the grants, that do not include further borrowing by the Government of the Republic of Kazakhstan from the donor, which has provided a grant or co-financing from the republican and local budgets;
3) tied grants –the grants, that include further borrowing by the Government of the Republic of Kazakhstan from the donor, which has provided a grant or co-financing from the republican and local budgets within the relevant budgetary program, aimed at implementation of the tied grant;
4) an agreement on the tied grant - an agreement between the government and the donor, providing for free financial or technical assistance to the Republic of Kazakhstan;
5) is excluded by the Law of the Republic of Kazakhstan dated 12.11.2015 № 393-V (shall be enforced upon expiry of ten calendar days after its first official publication);
6) the guarantee of a bank - the bank’s obligation to the central authorized body for the implementation of the budget on the repayment of the debt under the state-guaranteed loans, in the case of the borrower’s failure to provide the accumulation, owed from him (her) in the amount of the loan agreement, in the manner and within the timeframe, established by the agreement on the provision of public guarantees;
7) an approved budget - the budget, approved by the Parliament of the Republic of Kazakhstan or by the relevant maslikhat;
7-1) forward-looking consolidated financial statements - information on the financial position, movement and results of net assets, liabilities, income and expenses on an accrual basis, linked to macroeconomic indicators, formed on the basis of budgetary and financial statements;
8) a debt service – the aggregate payment, in a specific period of time, of the remuneration, commission fees, fines and other payments following from the borrowing conditions;
9) a monitoring of debt –activities of the state implemented by its authorized agencies for accounting, analysis and control over the process of formation, change, and debt service;
10) repayment of debt – a repayment of the received amount of the loan by the borrower in the order, established by the loan agreement and performance of other obligations under the loan agreement;
11) is excluded by the Law of the Republic of Kazakhstan dated 12.11.2015 № 393-V (shall be enforced upon expiry of ten calendar days after its first official publication);
11-1) is excluded by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication);
12) budget - a centralized fund of the state, intended to financial provision of the implementation of its tasks and functions;
12-1) budget system - set of budgets and the National Fund of the Republic of Kazakhstan, as well as the budget process and relations;
12-2) budget funds - money and other assets of the state, enrolling in state ownership and expenditure of which is reflected in the budget in the form of money;
12-3 ) recipients of budget funds - individuals and legal entities, receiving budget funds through the administrator of the budget programs and using them as part of the budget programs;
12-4) non-disbursement of budget funds – formed on the results of accounting period, the amount of excess of the financing plan for payments over the paid obligations under the budget program, except for budget savings, unallocated balance of reserves of the Government of the Republic of Kazakhstan and local executive bodies, notionally financed expenses, as well as the amount of return of targeted transfers for the development, allocated in the past financial year, allowed to use by the decision of the Government of the Republic of Kazakhstan or local executive bodies;
12-5) non-disbursement of budgetary funds - the amount of the excess of the financing plan on payments over the paid obligations under the budget program, formed as of the reporting period end, with the exception of savings in budgetary funds, the unallocated balance of the reserve for the initiatives of the President of the Republic of Kazakhstan, the reserves of the Government of the Republic of Kazakhstan and local executive bodies, as well as the amount of return of targeted transfers for development allocated in the past financial year, allowed to be additionally used by decision of the Government of the Republic of Kazakhstan or local executive bodies;
12-6) integrator in the field of budget process - a legal entity, the only shareholder of which shall be a state, determined by the central authorized body for budget execution, which is entrusted with functions to ensure the automation of budget process, as well as other functions provided by this Code;
12-7) integrator in the field of the budget process - a legal entity, the sole shareholder of which is the state, determined by the central authorized body for budget execution, which is entrusted with the functions of ensuring the automation of the budget process, as well as other functions provided for by this Code;
13) local authorized body for implementation of the budget - the executive body, financed from the local budget, carrying out functions in the area of budget execution, accounting, budgetary accounting and budgetary reporting on the implementation of the local budget;
14) a central authorized body for budget execution – the central executive body, carrying out the management and inter-sectoral coordination in the field of budget execution, accounting, budgetary accounting and budgetary reporting on the execution of the republican budget and, within its competence, the local budgets, the victims compensation Fund, the National Fund of the Republic of Kazakhstan on the basis of the report of the National Bank of the Republic of Kazakhstan;
14-1) is excluded by the Law of the Republic of Kazakhstan dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication).
14-2) ineffective execution of budget programs - expenditure of budget funds that does not meet the following principles of the budget system: effectiveness, validity, efficiency, responsibility, targeting and target nature of budget funds;
15) is excluded by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication);
15-1) central authorized body for budget planning - central executive body, providing management and - intersectoral coordination in the area of budget planning;
16) budget investments - financing from the republican or local budget, aimed at creating and (or) developing state assets through the implementation of budget investment projects, as well as formation and (or) increasing the authorized capital of legal entities, with the exception of assets, directed at taking operational measures to ensure socio-economic stability;
Note!
Amendments to subparagraph 17) shall be valid until 01.01.2026 in accordance with the Law of the Republic of Kazakhstan dated 30.12.2022 No. 177-VII.
17) budget investment project - a set of measures aimed at creation (construction) of new or reconstruction of existing facilities, and also creation and development of informatization objects, with the exception of informatization objects intended for the implementation of tasks purposed to ensure the activities of the President of the Republic of Kazakhstan, as well as informatization objects of special state bodies implemented at the expense of budgetary funds directly by the budget program administrator for a certain period of time and having a completed character, by the directorate for the implementation of a pilot national project in education for a certain period of time and having a completed character;
17-1) economic opinion on the budget investment project - the conclusion of the central or local authorized state planning body on the economic feasibility of the budget investment project, its impact on the country's economy and compliance with the State Planning System documents, based on the conclusion of the economic expertise of the feasibility study of the budget investment project;
17-2) economic examination of the feasibility study of the budget investment project - a comprehensive assessment of the information, provided in the feasibility study, on the determination of the feasibility and effectiveness of the project, carried out on the advice of industry expertise and other requirements in accordance with the budget legislation of the Republic of Kazakhstan on the conclusion of examinations;
18) a fiscal capacity - the cost of public services per unit of the recipients of the services, to be provided at the expense of the respective budgets;
19) is excluded by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication);
20) is excluded by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication);
21) budget relations – relations, arising in the budget process;
22) budget transactions – transactions, carried out during the execution of the budget;
23) is excluded by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication);
24) a grant –free financial or technical assistance, provided to the state organizations of the Republic of Kazakhstan by donors;
25) donors - foreign countries, their governments and agencies, international and foreign government agencies, and foreign non-governmental public organizations and foundations, which activities are not contrary to the Constitution of the Republic of Kazakhstan;
26) a financial year - the year, preceding the current financial year of the planning period;
26-1) limit of the debt of local executive body - the fixed amount of loans received and outstanding by the local executive body, established by the central authorized body on state planning for the local executive bodies of the region, the city of the republican significance, for the relevant financial year, which should not exceed the actual debt of the local executive on the given date (at the end of the corresponding financial year);
27) the debt of the local executive body - the amount of received and outstanding loans of the local executive body for a certain date;
28) is excluded by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication);
29) a planning period - three financial years, following the current financial year;
29-1) economic opinion on budget investments through the state participation in the authorized capital of legal entities - the conclusion of the authorized central or local state planning body on the economic feasibility of budget investments, their impact on the country's economy and compliance with the State Planning System documents, prepared on the basis of conclusions of economic expertise of the financial and economic feasibility of budget investments through the state participation in the authorized capital of legal entities;
29-2) economic examination of financial and economic feasibility of budget investments through the state participation in the authorized capital of legal entities - a comprehensive assessment of the information, provided in the financial feasibility study for compliance of activities with the criteria of validity and effectiveness, conducted on the advice of industry expertise and other examination reports, required in accordance with the budget legislation of the Republic of Kazakhstan;
29-3) budget investment by forming and (or) increasing the authorized capital of a legal entity - the implementation of activities aimed at the development of a legal entity through the formation and (or) an increase in its authorized capital from the state or local budget;
30) investment proposal - a conceptual proposal substantiating feasibility of the state investment projects within the implementation of the State Planning System documents, annual state-of-the-nation Addresses of the President of the Republic of Kazakhstan and instructions of the President of the Republic of Kazakhstan, reflecting the purpose of investment, ways to achieve it and possible ways of financing, including a set of relevant measures developed by budget programs administrators;
30-1) economic opinion on the investment proposal - the conclusion of the central or local authorized body for state planning on the economic feasibility of implementation of the investment project, contained in the investment proposal as a budget investment project, the compliance of the objectives of the project with the development priorities of the (sector) economy industry, established by the strategic and (or) policy documents;
30-2) institutional project - a set of activities, aimed at institutional development of the branch (sphere), implemented directly by the budget program administrator for a certain period of time, having a completed character and financed through public borrowing with conclusion of a loan agreement;
31) subjects of the quasi-public sector - state enterprises, limited liability partnerships, joint-stock companies, including national managing holdings, national holdings, national companies, the founder, participant or shareholder of which is the state, as well as subsidiaries, affiliates and other legal entities that are affiliated with them in accordance with the legislative acts of the Republic of Kazakhstan;
32) the next financial year - the year following the current financial year;
33) a counter party – a party of the transaction for hedging the government loans, concluded with the authorized body for the implementation of the budget;
33-1) concession project - a set of measures to implement the concession sold for a limited period of time and having a complete character, according to the budget legislation of the Republic of Kazakhstan and the Law of the Republic of Kazakhstan “On concessions”;
34) is excluded by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication);
35) standard of income distribution - the percentage of distribution of income between budgets of different levels;
36) residents of the Republic of Kazakhstan - legal entities, established in accordance with the legislation of the Republic of Kazakhstan and located in the Republic of Kazakhstan, as well as their branches and representative offices, also located in the Republic of Kazakhstan and (or) outside of it;
36-1) treasury support – an activity on carrying out of current control over the targeted use of funds, allocated for implementation of budget investment projects related to construction, ensuring the completeness of payment of taxes and other payments to the budget by the participants in implementation of budget investment project - by the general contractor and subcontractor at all stages of making payments through cash reconciliation accounts;
37) a financial agency - the national holding company and legal entities, one hundred percent of shares of which are owned by a national management holding company, as well as a bank or organization which is fully owned by the state, carrying out certain types of banking operations, authorized in accordance with the legislation of the Republic of Kazakhstan, for the implementation of the state’s investment policy in certain sectors of the economy and the implementation of the borrowings in the financial market of the Republic of Kazakhstan and (or) on the international financial markets for these purposes;
38) financial year - the period beginning from January 1 and ending on December 31 of the calendar year, during which the implementation of the budget is carried out;
39) financing - allocation of budget funds to the beneficiaries;
40) financial reporting - information on financial position, financial results of activity and changes in financial position of objects of state audit and financial control, forms and amounts of which shall be determined by the central authorized body for budget execution, unless otherwise stipulated by legislative acts of the Republic of Kazakhstan;
41) borrowing - a process that includes the decision-making procedures for debt financing, determination of the order and terms of attraction, use, repayment and servicing of the loan, the negotiation procedures, ensuring and guarantees of performance, execution and signing the appropriate documents for the loan, ratification of the loan agreement (in public external borrowing), receipt, use of loan proceeds, including accounting procedures, controlling and the analysis of the performance of obligations by the parties;
42) a money - lender – a person, lending governmental or non-governmental loan under the state guarantee or surety of the state, or a representative of the holders of infrastructure bonds;
42-1) loan servicing - activity of central or local authorized body for execution of the budget or the bank for recording the use of loan funds on the borrower's accounts and for the borrower to make payments of fees, commissions and other payments in accordance with the terms of the loan;
42-2) loan restructuring - changing the terms agreed by the parties, financial and other conditions for the execution of their obligations under the loan agreement;
43) a loan agreement - an agreement, under which the borrower receives the loan and is obliged to return them to the lender and pay compensation, as well as other fees, related to the loan;
43-1) the standard for directing funds to environmental protection measures - the share of income from payments for negative environmental impact directed to environmental protection measures in accordance with the Environmental Code of the Republic of Kazakhstan;
44) is excluded by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication);
45) is excluded by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication);
46) state assets – property and non-property benefits and rights, which have valuation base and obtained in state ownership as a result of past transactions or events;
47) a loan, attracted under surety of the state - non-government loan, implementing by issuing the infrastructure bonds;
48) a debt under the surety of the state - the amount on a certain date of the received and outstanding amount of non-government loans under the surety of the state;
49) a limit on the provision of the state guarantees - a fixed amount, sanctioned by the Law on the republican budget for the corresponding financial year within which guarantees of the state may be issued;
50) government-backed debt - the amount on a certain date of the received and outstanding amount of non-government loans, which are secured by the state guarantees;
51) state-guaranteed loan –a private loan secured by the state guarantees;
52) refinancing of the state debt – a redemption of the state debt at the expense of new borrowings;
53) a non-government debt - loan relations, in which the borrower is a resident of the Republic of Kazakhstan, with the exception of the Government of the Republic of Kazakhstan, the National Bank of Kazakhstan and local executive bodies;
53-1) state obligations for public-private partnership projects - the aggregate of rights and obligations of the state partner for the amount, allocated from the state budget for a certain date of financial obligations accepted and not fulfilled by the state partner under the concluded public-private partnership agreements;
53-2) the project of public-private partnership - a set of successive measures for implementation of public-private partnerships, implemented for a limited period of time and having a completed character in accordance with the budget legislation of the Republic of Kazakhstan and the Law of the Republic of Kazakhstan on Public-Private Partnerships;
54) local authorized body for state planning - the executive body, financed from the local budget, carrying out functions in the field of strategic, economic and budget planning in the respective administrative-territorial unit;
55) the central authorized state planning body - the central executive body that exercises management and cross-sectoral coordination in economic planning, development and formation of budgetary policy, as well as formation and implementation of state policy in regional development;
56) a limit on the provision of state guarantees - a fixed amount, approved by the Law on the republican budget for the corresponding financial year, within which state guarantees may be issued;
56-1) state concession liabilities - a set of rights and obligations of the grantor on the amount, received on a certain date and unfulfilled by the grantor the financial obligations under the concession contracts;
56-2) is excluded by the Law of the Republic of Kazakhstan № 393-V dated 12.11.2015 (shall be enforced upon expiry of ten calendar days after its first official publication);
57) state loan - loan relations, in which the borrower shall be the Government of the Republic of Kazakhstan, the National Bank of the Republic of Kazakhstan or local executive bodies. For the purposes of this Code, attraction of Islamic finance through the issuance and placement of state Islamic securities, issued by the state Islamic special financial company shall be considered as a state loan and be carried out, taking into account the specifics established by this Code, other laws of the Republic of Kazakhstan, as well as the terms of issuance of state Islamic securities;
57-1) state investment project - a set of measures aimed at achieving the strategic goals of the state through carrying out of budget investments and implementation of public-private partnership projects, including concession projects;
58) state issued security - an issuing security, certifying the rights of its holder in respect of a loan in which the borrower is the Government of the Republic of Kazakhstan, the National Bank of the Republic of Kazakhstan and local executive bodies or certifying the rights of its holder to receive income from the use of assets on the basis of an agreement lease;
59) an offering of state equity securities - alienation of state equity securities of the Government of the Republic of Kazakhstan, the National Bank of Kazakhstan and the local executive bodies through the conclusion of the first owners of civil transactions;
60) a revised budget –the approved budget with changes and amendments, adopted by the Parliament of the Republic of Kazakhstan or by the relevant maslikhat during its implementation;
61) performance indicators - a set of target indicators, direct and final results characterizing the state body’s activities for the implementation of the development plan of the state body, development plans for the region, city of republican status, the capital and (or) budget programs;
62) the principal amount of a loan - repayable amount of received and not returned loan to the lender, excluding accrued interest amounts on it, a forfeit (fine, penalty);
62-1) target indicator - an indicator quantifying the achievement of the goal of the state body’s development plan or the development plan of the region, city of republican status, the capital;
62-2) mutually compensating transactions- transactions, carried out in formation of the state budget, district and regional budgets (city of regional significance), as well as reports on their implementation, related to exclusion of transfers, budget credits and other money transferred from one level of the budget to another, in order to avoid double counting;
62-3) the tax potential of the region - the maximum possible amount of tax revenues and other mandatory payments to the budget, calculated to determine the amount of the region's revenues in determining the amount of general transfers for a three-years period;
63) free financial aid –provision of money to the state organizations of the Republic of Kazakhstan for financing the supply of goods, works and services by donors;
64) free technical assistance –performance or organization of the supply of goods, works and services to the state organizations of the Republic of Kazakhstan by donors;
65) is excluded by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication);
66) an insurance contract - the contract, providing the obligation of the insurance organization to the central authorized body for the implementation of the budget for compensation of the damages, resulting from the diversion of funds from the republican budget for the performance of obligations under the securities of the state or state guarantees;
67) a non-fixed (floating) interest rate - the interest rate on credits, loans or income from securities with compensation, which is subject to changes depending on the market conditions;
68) a foreign loan - a loan relationship in which the lender is a non-resident of the Republic of Kazakhstan, and the borrower is the Government of the Republic of Kazakhstan or a resident of the Republic of Kazakhstan;
68-1) Excluded by the Law of the Republic of Kazakhstan dated 03.01.2022 No. 101-VII (shall be enforced sixty calendar days after the date of its first official publication).
69) a direct result - a quantitative characterization of the scope of government functions, authorities and public services within the established budget funds, the achievement of which depends entirely on the activities of the organization, performing these functions, authorities and services;
70) end result - an indicator of the budget program that quantifies the achievement of the goal of the state body’s development plan, the development plan of the region, the city of republican status, the capital and (or) the budget program, due to the achievement of direct results of the state body’s activity;
71) a government debt - the amount of received and not repaid government loans by the Government of the Republic of Kazakhstan and classified in accordance with the legislative acts of the Republic of Kazakhstan as the debt of the Government of the Republic of Kazakhstan, the debt obligations on a certain date;
72) a limit of government debt - a fixed amount of the received and outstanding amount of government loans, approved by the Law on the republican budget to the corresponding financial year, which shall not exceed the actual debt of the Government of the Republic of Kazakhstan on a given date (the end of the corresponding financial year);
73) hedging of government loans - a settlement of transaction with financial instruments between the authorized body for budget execution and counterparty in order to manage risk (currency, interest rate and other) of governmental borrowing;
73-1) limit on provision of state guarantees of the Republic of Kazakhstan on export support – a fixed amount for the corresponding financial year, approved by the Law on the republican budget, within which state guarantees of the Republic of Kazakhstan on export support can be issued;
73-2) obligation to support exports, guaranteed by the state– the amount of unliquidated obligations under insurance contracts on a certain date, secured by the state guarantee of the Republic of Kazakhstan on export support, for which the national company, carrying out the functions on export support, has not made insurance payments;
74) a domestic loan - loan relations in which the lender is a resident of the Republic of Kazakhstan, and the borrower is the Government of the Republic of Kazakhstan, local executive body or a resident of the Republic of Kazakhstan.
Terms of other branches of the legislation of the Republic of Kazakhstan, used in this Code shall be applied in the meaning, in which they are used in the relevant areas of legislation of the Republic of Kazakhstan, unless otherwise provided in this Code.
In case of discrepancy of the definitions of the budget legislation of the Republic of Kazakhstan with the definitions of other branches of legislation of the Republic of Kazakhstan, the concepts of the budget legislation of the Republic of Kazakhstan shall be used in relation to budget relations.
Footnote. Article 3, as amended by the Laws of the Republic of Kazakhstan dated 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010); dd. 19.01.2011 No. 395-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 22.07.2011 No. 475-IV (shall be enforced from the date of its first official publication); dated 24.11.2011 No. 495-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 28.12.2011 No. 524 -IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 16.02.2012 No. 557-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication), dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication), dated 03.12.2013 No. 150-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 02.07.2014 № 225-V (shall be enforced upon expiry of ten calendar days after its first official publication); 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication); 28.11.2014 № 257 (shall be enforced from 01.01.2015); dated 15.06.2015 № 322-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 31.10.2015 № 380-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.11.2015 No. 393-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.11.2015 № 395-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 24.11.2015 № 422-V (shall be enforced from 01.01.2016); dated 07.04.2016 № 487-V (shall be enforced from the date of signing); dated 27.02.2017 № 49-VI (shall be enforced from 01.01.2017); dated 11.07.2017 № 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication); № 112-VI of 30.11.2017 (see art. 2 for the enactment procedure); dated 28.12.2017 № 128-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 10.01.2018 No. 132-VI (shall be enforced from 01.07.2018); dated 18.03.2019 No. 237-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 03.04.2019 No. 243-VI (shall be enforced upon expiry of ten calendar days after its first official publication); № 290-VI of 27.12.2019 (shall be enforced since 01.01.2020); dated 25.12.2020 No. 391-VI ( see Article 2 for the procedure for enactment ) ; dated 02.01.2021 No. 401-VI (shall be enforced from 01.07.2021); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication); dated 03.01.2022 No. 101-VII (shall be enforced sixty calendar days after the date of its first official publication); dated 30.12.2022 No. 177-VII (shall be enforced ten calendar days after the date of its first official publication).
Article 4. The principles of the budget system of the Republic of Kazakhstan
The budget system of the Republic of Kazakhstan shall be based on the following principles:
1) the principle of unity - the application of unified principles of organization and functioning of the budget system, use of a single budget classification, unified procedures and technical decisions of the budget process in the Republic of Kazakhstan;
2) the principle of completeness - reflection in the budget and the National Fund of the Republic of Kazakhstan of all the revenues and expenses, provided by the legislation of the Republic of Kazakhstan, and avoiding offset of mutual claims with using the budget funds, as well as assignments of claims on the budget funds;
3) the principle of realism - conformity of the approved (revised, adjusted) budget indicators to the approved (revised, adjusted) parameters, directions of socio-economic development forecasts, national projects, development plans of state bodies, development plans of the region, the city of republican status, the capital;
4) the principle of transparency - mandatory publication of regulatory legal acts in budgetary legislation of the Republic of Kazakhstan, approved (revised, adjusted) budgets and reports on their execution, civil budget, development plans of state bodies and reports on their performance, a report on the formation and use of the National Fund of the Republic of Kazakhstan, with the exception of information constituting a state or other secret protected by law, as well as the mandatory openness of the budget process for society and the media;
5) the principle of consistency – compliance with the earlier decisions in the field of budgetary relations by the state bodies;
6) the principle of consequentialism - development and execution of a budget focused on the implementation of national projects, achievement of the performance indicators provided for by the development plans of state bodies, development plans of the region, city of republican status, the capital and (or) budget programs of state bodies;
7) the principle of independence of the budget - the establishment of a stable distribution of revenues between the various budgets and determination of areas of their spending in accordance with this Code, the right of all levels of state administration to independently carrying out the budget process in accordance with this Code, the inadmissibility of seizure of proceeds, additionally received in the implementation of local budgets and surpluses of local budgets to higher budgets, the inadmissibility of laying on the lower budgets, additional costs without their corresponding recovery;
8) the principle of continuity – planning of the republican and local budgets, based on the forecasts of social and economic development, basic expenses, approved in previous periods, the results of budget monitoring, and evaluation of results;
9) the principle of reasonableness – planning of budget on the basis of regulatory legal acts and other documents, defining the need to include a budget project of some income and expenditure and the relevance of their size, and using of the budget funds and state assets in accordance with the legislation of the Republic of Kazakhstan;
10) the principle of timeliness – crediting of revenues to the republican and local budgets, to the control cash account of the National Fund of the Republic of Kazakhstan and transferring them to the Government's accounts in the National Bank of the Republic of Kazakhstan, to the Victims Compensation Fund, to the Education Infrastructure Support Fund, crediting and distributing revenues to budgets of the Eurasian Economic Union member states, acceptance of obligations by state institutions in accordance with individual financing plans on obligations, making payments in accordance with individual financing plans on payments and transferring budget funds to the accounts of budget funds recipients in due time in compliance with the procedure established by the relevant regulatory legal acts of the Republic of Kazakhstan;
11) the principle of cash unity - transfer of all budget revenues to the single treasury account and execution of all expenses from a single treasury account in national currency;
12) the principle of efficiency - the development and implementation of the budget, based on the need to achieve the best direct and final result using the approved amount of budget funds or to achieve a direct and final result using a smaller amount of budget funds;
13) the principle of responsibility - taking the necessary administrative and management decisions, aimed at achieving the direct and final results, and ensuring the responsibility of managers of budgetary programs and heads of state institutions and quasi-public sector entities for making decisions, unconformable to the legislation of the Republic of Kazakhstan;
14) the principle of targeting and purpose orientation of budgetary funds - direction and use of budgetary funds by budget programs administrators, subjects of the quasi-public sector for the implementation of national projects, achievement of the performance indicators provided for by the development plans of state bodies, development plans of the region, the city of republican status, the capital and (or) budget programs of state bodies, financial feasibility studies for budget investments, through participation in the authorized capital of quasi-public sector subjects in compliance with the legislation of the Republic of Kazakhstan.
Footnote. Article 4, as amended by the Laws of the Republic of Kazakhstan dated 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010); dated 16.02.2012 No. 557-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 03.12.2013 No. 150-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.11.2015 № 395-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 30.11.2017 № 112-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication); dated 30.12.2022 No. 177-VII (shall be enforced ten calendar days after the date of its first official publication).
Article 5. Regulatory legal acts, affecting the income and expenses of the budget
For the drafts of laws, submitted to the Majilis of the Parliament of the Republic of Kazakhstan as a legislative initiative of the President of the Republic of Kazakhstan, the existence of such a conclusion is not required.
Provisions of draft decrees of the President of the Republic of Kazakhstan, resolutions of the Government of the Republic of Kazakhstan, regulatory legal orders of the ministers of the Republic of Kazakhstan and other heads of central state bodies, regulatory legal resolutions of central state bodies, regulatory legal orders of the heads of departments of central state bodies having competence for approving them in regulatory legal acts of the state body, whose structure includes the department, providing for a reduction in revenues or an increase in expenditures of the republican and local budgets and (or) the National Fund of the Republic of Kazakhstan, shall be subject to mandatory review by the Republican Budget Commission.
The conclusion of the akim is formed with the proposals of the relevant budget commission.
The provisions of the draft acts of the local executive bodies, providing an increase of expenses or a decrease of incomes of local budgets shall be subjected to mandatory consideration of the relevant budget commission.
Footnote. Article 5, as amended by the Laws of the Republic of Kazakhstan dated 12.11.2015 № 395-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 30.11.2017 №. 112-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Article 5-1. Functions of the integrator in the field of budget process
Integrator in the field of budget process shall:
1) develop technical documentation, with the exception of operational documentation, for creation and development of information systems of state bodies in the field of budget process;
2) carry out system-technical maintenance and support of information systems of state bodies in the field of budget process;
3) carry out the management of projects for creation, development, system-technical maintenance and support of information systems of state bodies in the field of budget process;
4) provide consulting assistance to subjects of information systems of state bodies in the field of budget process;
5) ensure the compliance of information security of information systems of state bodies in the field of budget process with the requirements of the legislation of the Republic of Kazakhstan on informatization.
Footnote. Chapter 1 is supplemented by Article 5-1 in accordance with the Law of the Republic of Kazakhstan dated 30.11.2017 №. 112-VI (shall be enforced upon expiry of ten calendar days after its first official publication).
Chapter 2. TYPES AND LEVELS OF BUDGET
Article 6. General provisions on the types and levels of budget
1) the republican budget;
2) the regional budget, budgets of the city of republican significance, the capital city;
3) district (city of regional significance) budget;
4) budgets of the city of district significance, a village, a township, a rural district.
The regional budget, the budgets of the city of the republican significance, the capital city, the district (city of regional significance) budget, the budgets of the city of district significance, a village, a township, the rural district shall be local budgets.
The State budget is the centralized monetary fund of the state, joining the republican and local budgets without inter-reimbursed transactions between them.
The consolidated budget is the centralized monetary fund of the state, which unites the republican budget, the budgets of oblasts, cities of republican status, the capital, receipts and expenditures of the National Fund of the Republic of Kazakhstan, receipts and payments of the Victims Compensation Fund, receipts and expenditures of the Education Infrastructure Support Fund, receipts and expenses of the Social Insurance Fund, receipts and expenses of the Social Health Insurance Fund excluding mutually repayable transactions between them.
The budget is the centralized monetary fund, joining the regional budget, the district budgets (city of regional importance) without inter-reimbursed transactions between them.
The budget of the district (city of regional significance) shall a centralized monetary fund, uniting the regional (city of regional significance) budget, budgets of cities of district significance, villages, townships, rural districts without taking into account the mutual-paid transactions between them.
Footnote. Article 6 as amended by the laws of the Republic of Kazakhstan dated 02.07.2014 №. 225-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.07.2017 №. 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 10.01.2018 No. 132-VI (shall be enforced from 01.07.2018); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication); dated 30.12.2022 No. 177-VII (shall be enforced ten calendar days after the date of its first official publication).
Article 7. Republican budget
Article 8. Regional budget, the budgets of the city of republican significance and the capital
Footnote. Article 8 as amended by the Law of the Republic of Kazakhstan dated 28.12.2018 No. 210-VI (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 9. The budget of the region (the city of regional significance)
Footnote. Article 9 is in the wording of the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 9-1. Budgets of the city of district significance, a village, a township, a rural district
Footnote. Chapter 2 is supplemented by Article 9-1 in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (shall enforced upon expiry of ten calendar days after its first official publication).
Article 10. Emergency state budget
Where the validity of the emergency state budget is suspended the republican and local budgets are to be clarified.
Chapter 3. STRUCTURE OF THE BUDGET
Article 11. Receipts of the budget
Tax revenues also include advance payments made in accordance with the customs legislation of the Eurasian Economic Union and (or) of the Republic of Kazakhstan in the payment of upcoming customs duties, customs collections, taxes, special, anti-dumping, countervailing duties.
1) from the sale of state property, assigned to the state bodies;
2) from the sale of goods of the state reserves;
3) from the sale of land plots, which are in state ownership, to private ownership or providing them to the permanent or temporary land use or implemented by other means in the manner prescribed by the Laws of the Republic of Kazakhstan and international treaties;
4) from the sale of intangible assets, owned by the state.
Footnote. Article 11, as amended by the Laws of the Republic of Kazakhstan dd. 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010); dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010); dated 26.12.2017 № 124-VI (shall be enforced from 01.01.2018); dated 03.04.2019 № 243-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 30.04.2021 No. 34-VII (shall be enforced from 01.01.2022).
Article 12. Budget expenditures
The level of long-term growth is defined as the average value of the growth of real gross domestic product over the ten years preceding the planning period.
The inflation target is defined as the center of the inflation target for the planning period, established by the National Bank of the Republic of Kazakhstan.
Footnote. Article 12 as amended by the Law of the Republic of Kazakhstan dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Article 13. Budgetary structure
The structure of the budget consists of the following sections:
1) revenues:
tax revenues;
non-tax revenues;
proceeds from the sale of fixed assets;
transfers revenues;
2) expenses;
3) net budget crediting:
budget loans;
repayment of budget loans;
4) the balance on transactions with financial assets:
purchase of financial assets;
proceeds from the sale of state financial assets;
5) deficit (surplus) of the budget;
5-1) non-oil budget deficit (surplus);
6) financing of the budget deficit(use of surplus):
receipt of loans;
repayment of loans;
used budgetary surpluses.
Footnote. Article 13 as amended by the Law of the Republic of Kazakhstan dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Article 14. Non-oil deficit (proficit) of the republican or state budget
The received amount with a negative sign shall be a non-oil deficit of the republican or state budget, with a positive sign - a non-oil proficit of the republican or state budget.
The size of non-oil deficit (proficit) of the state budget shall not be approved and be used for analytical purposes.
To reduce the dependence of budget expenditures on oil revenues, the size of the non-oil deficit in the long-term period should decrease due to the targeted development of the non-oil sector of the economy.
Footnote. Article 14 is in the wording of the Law of the Republic of Kazakhstan dated 30.11.2017 № 112-VI (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 15. Net budget credit
Net budget credit is defined as the difference between the budget loans and the repayment of budget loans.
Article 16. Balance on the transactions with financial assets
1) a purchase of financial assets;
2) revenues from the sale of state financial assets.
Article 17. Deficit (surplus) of the budget
Deficit (surplus) of the budget is equal to the difference between the income and expenses, the net budgetary crediting and the balance on transactions with financial assets.
The value, obtained with a negative sign is the deficit, and with a positive sign is the budget surplus.
Article 18. Financing of the budget deficit (use of surplus)
The amount of financing of the budget deficit is defined as the excess of the amount of loans of raised and the used budget surpluses over the capital for the repayment of loans.
The value of the financing of the budget deficit is set with the positive sign and equal to the budget deficit.
The using volume of the budget surplus is defined as the excess of the amount of principal repayment on loans over the sum of received loans and used budgetary surpluses.
The value of using the budget surplus is set with negative sign and equal to the budget surplus.
Chapter 4. RESERVES OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN AND LOCAL EXECUTIVE BODIES
Article 19. General provisions on the reserves of the Government of the Republic of Kazakhstan and local executive bodies
1) a contingency reserve;
1-1) a reserve for the life support of the population in liquidation of emergency situations of natural and man-made nature;
2) a reserve for emergency expenses;
2-1) is excluded by the Law of the Republic of Kazakhstan dated 25.12.2020 No. 391-VI (shall be enforced ten calendar days after the day of its first official publication);
3)a reserve for the fulfillment of obligations under the court’s decisions;
4) a reserve for covering the cash deficits of the regional budgets, budgets of the cities of republican significance, the capital city.
1) a contingency reserve;
2) a reserve for emergency expenses;
3) a reserve for the fulfillment of obligations under the court’s decisions;
4) a reserve to cover the cash deficit of district (the cities of regional significance) budgets.
1) a contingency reserve;
2) a reserve for emergency expenses;
3) a reserve for the fulfillment of obligations under the court’s decisions;
4) a reserve to cover the cash deficit in the budgets of the cities of district significance, villages, townships, rural districts.
The total volume of the reserve of the local executive body shall not exceed two percent of the total income of the relevant local budget, excluding transfers and loans.
To conduct rescue and recovery operations and other activities, related to elimination of the consequences of natural and man-made disasters, as well as situations that threaten the political, economic and social stability, life and health of people, with a term of implementation for more than one financial year, funds from the Government reserve are allocated with the definition of the total cost, and the amount of the current financial year and the amount by which the Government of the Republic of Kazakhstan shall adopt the decision additionally in the coming financial years.
In the event of deficiency of funds, provided for one of the types of reserves, the Government of the Republic of Kazakhstan or the local executive body shall increase the planning purposes of the corresponding reserve through the reallocation of the total volume of the reserves of the Government of the Republic of Kazakhstan and local executive bodies, in the established order.
Article 20. Use of the reserves of the Government of the Republic of Kazakhstan and the local executive bodies
Financing of expenses from emergency reserve for the activities on liquidation of social, natural and man-made emergency situations provided by the decisions of the Government of the Republic of Kazakhstan or local executive bodies respectively may be carried out by the authorized agencies for budget execution as the administrators of budget programs submit the justifying documents in accordance with the legislation of the Republic of Kazakhstan.
1-1. The reserve for life support of the population upon liquidation of emergency situations of natural and man-made character shall be used to carry out activities aimed at preserving life and maintaining people's health in emergency zones, evacuation routes and places of accommodation of evacuated people.
2-1. Excluded by the Law of the Republic of Kazakhstan dated 25.12.2020 No. 391-VI (shall be enforced ten calendar days after the day of its first official publication).
The reserve for crediting the district (the city of district significance) budgets in case of prediction of cash deficit of their budgets for the next financial year of shall be provided in the regional budget in the next financial year.
The reserve for crediting the budgets of cities of district significance, villages, townships, rural districts in case of a prediction of cash deficit of their budgets for the next financial year shall be provided in district (the city of regional significance) budget in the next financial year.
Borrowing duration in the event of forecast cash deficit in the next financial year may be up to six months within the financial year and does not require the republican or local budgets adjustment.
6-1. The responsibility in accordance with the laws of the Republic of Kazakhstan for untimely return of the unused portion of the allocated money from the reserve of the Government of the Republic of Kazakhstan or local executive body shall bear the first head of the administrator of budget programs, having received the money in accordance with the resolution of the Government of the Republic of Kazakhstan or local executive body.
Footnote. Article 20, as amended by the Law of the Republic of Kazakhstan dd. 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010), by the Constitutional Law of the Republic of Kazakhstan dated 03.07.2013 No. 121-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.04.2014 № 189-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.11.2015 № 395-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 07.04.2016 № 487-V (shall be enforced from the date of signing); dated 11.07.2017 №. 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 30.11. 2017 № 112-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 25.12.2020 No. 391-VI (shall be enforced ten calendar days after the day of its first official publication); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Chapter 5. FORMATION, USE AND MANAGEMENT OF NATIONAL FUND OF THE REPUBLIC OF KAZAKHSTAN
Article 21. National Fund of the Republic of Kazakhstan
Saving function provides the accumulation of financial assets and other assets, excluding intangible assets, and the return on assets of the National Fund of the Republic of Kazakhstan in the long term with a moderate level of risk.
Stabilization function is designed to maintain a sufficient level of liquidity of assets of the National Fund of the Republic of Kazakhstan.
Part of the National Fund of the Republic of Kazakhstan, used for stabilization function is determined in the amount, necessary to provide the guaranteed transfer.
Accounting and reporting operations of the National Fund of the Republic of Kazakhstan are made in the national currency.
The order of accounting and compiling of financial reporting of the National Fund of the Republic of Kazakhstan shall be determined by the National Bank of the Republic of Kazakhstan.
The compiling of financial reporting, based on the results of trust management of the National Fund of the Republic of Kazakhstan shall be carried out by the National Bank of the Republic of Kazakhstan in accordance with the trust management agreement.
Footnote. Article 21, as amended by the Law of the Republic of Kazakhstan dd. 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010); dated 24.11.2015 № 422-V (shall be enforced from 01.01.2016); dated 30.11.2016 № 26-VI (shall be enforced from 01.01.2016); dated 30.11.2017 № 112-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Article 22. Sources for formation of the National Fund of the Republic of Kazakhstan
1) receipts to the National Fund of the Republic of Kazakhstan;
2) investment income from the management of the National Fund of the Republic of Kazakhstan;
3) other receipts and income, not prohibited by the legislation of the Republic of Kazakhstan.
1) direct taxes from the oil sector organizations (except for taxes to the local budgets), which include:
corporate income tax, excess profits tax, alternative tax on subsoil use;
severance tax, bonuses, share of production sharing;
rent tax on exports;
additional payment of subsoil users, carrying out activities under the production sharing contract;
2) other income from operations, carrying out by the organizations of the oil sector (other than to the local budgets), including income for violating the conditions of oil contracts (other than to the local budgets);
3) receipts from privatization of the republican property;
3-1) receipts from the transfer to a competitive environment of the assets of national managing holdings, national holdings, national companies and their subsidiaries, affiliates and other legal entities that are affiliated with them, in the manner and under the list, determined by the Government of the Republic of Kazakhstan;
3-2) proceeds from the sale by an organization specializing in improving the quality of loan portfolios of second-tier banks, assets acquired in accordance with subparagraph 3) of paragraph 1 of Article 39-2 of this Code;
4) income from the sale of agricultural land.
1) legal entities engaged in the extraction of crude oil, gas condensate;
2) legal entities that have entered into contracts for the exploration of crude oil, gas condensate;
3) the recipient on behalf of the state of minerals transferred by the subsoil user to fulfill the tax obligation in kind.
The list of organizations in the oil sector for the next financial year is approved by December 20 of the current financial year jointly by the central authorized body for budget execution and the competent body implementing the state policy in the field of subsoil use, concluding and executing oil contracts.
Footnote. Article 22 as amended by the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 02.04.2019 № 241-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.01.2021 No. 407-VI (see art. 2 for the procedure for enactment ).
Article 23. Use of the National Fund of the Republic of Kazakhstan
1) as a guaranteed transfer from the National Fund of the Republic of Kazakhstan to the republican budget;
2) is excluded by the Law of the Republic of Kazakhstan dd. 24.11.2011 No. 495-IV (shall be enforced after ten calendar days after its first official publication);
3) on covering of expenses, associated with the management of the National Fund of the Republic of Kazakhstan and conducting the annual audit;
4) in the form of targeted transfers from the National Fund of the Republic of Kazakhstan to the republican budget by decision of the President of the Republic of Kazakhstan for financing:
anti-crisis programs during economic downturn or economic slowdown periods;
socially significant projects of national scale, strategically important infrastructure projects in the absence of alternative sources of their financing.
1) a preservation of the National Fund of the Republic of Kazakhstan;
2) maintaining of a sufficient level of liquidity of the National Fund of the Republic of Kazakhstan;
3) a high level of profitability of the National Fund of the Republic of Kazakhstan in the long term with a moderate level of risk;
4) reception of the investment income in the long term.
Footnote. Article 23, as amended by the Law of the Republic of Kazakhstan dd. 24.11.2011 No. 495-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication).
Article 24. Guaranteed transfer from the National Fund of the Republic of Kazakhstan to the republican budget
2-1. A guaranteed transfer from the National Fund of the Republic of Kazakhstan shall be planned in an amount not exceeding the volume of projected receipts to the National Fund of the Republic of Kazakhstan from the oil sector organizations at a cut-off price.
The cut-off price shall be determined in the manner established by the central authorized state planning body in coordination with the National Bank of the Republic of Kazakhstan.
The cut-off price shall be established by the law provided for in paragraph 2 of this article.
Footnote. Article 24, as amended by the Laws of the Republic of Kazakhstan dated 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010); dated 24.11.2011 No. 495-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.11.2015 № 395-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 25.12.2020 No. 391-VI (effective from 01.01.2022).
Article 25. Management Council of the National Fund of the Republic of Kazakhstan
1) development of proposals to improve the formation and use of the National Fund of the Republic of Kazakhstan;
2) consideration and development of proposals for the volume and direction of use of the National Fund of the Republic of Kazakhstan;
3) development of proposals for the list of approved financial instruments, except for intangible assets, for placement the National Fund of the Republic of Kazakhstan.
4) the functions, established by the Law of the Republic of Kazakhstan "On Pensions in the Republic of Kazakhstan" in the part of management of pension assets of the single accumulative pension fund.
Footnote. Article 25 as amended by the Law of the Republic of Kazakhstan dated 02.08.2015 № 342-V (shall be enforced from 01.01.2016).
Chapter 6. UNIFIED BUDGET CLASSIFICATION
Article 26. Identification of unified budget classification
Footnote. Article 26, as amended by the Law of the Republic of Kazakhstan dated 24.11.2011 No. 495-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 27. Composition of unified budget classification
Unified budget classification shall include:
1) a classification of budget revenues;
2) a functional classification of budget expenditures;
3) an economic classification of expenditures.
Article 28. Classification of budget revenues
The categories represent grouping the revenues on economic grounds.
Classes and subclasses group revenues by their sources and types.
Specificity determines the form of payment or budget revenues.
Article 29. Functional classification of budget expenditures
functional groups;
functional sub-groups;
administrators of budget programs;
budget programs (subprograms).
Footnote. Article 29, as amended by the Law of the Republic of Kazakhstan dd. 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Article 30. Economic classification of budget expenditures
The category shall group the spending on economic grounds. The class and subclass shall group expenditures on the main types of transactions, conducted by state institutions. Specificity determines the type of operations, carried out by state institution for the implementation of the budget program.
Footnote. Article 30, as amended by the Law of the Republic of Kazakhstan dated 24.11.2011 No. 495-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 31. The administrator of the budget programs
The administrator of the budget programs is determined according to the functions and powers entrusted to it.
Budget programs for which the implementation of budget investment is planned by the state’s participation in the authorized capital of the national holdings and national management holding company, providing the implementation of projects in various sectors of the economy, which cannot be attributed to the competence of a single administrator of budget programs, the administrator shall be the central authorized body for state planning.
Footnote. Article 31, as amended by the Laws of the Republic of Kazakhstan dated 24.11.2011 No. 495-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 23.11.2012 No. 55-V (shall be enforced from the date of its first official publication), dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 02.11.2015 № 384-V (shall be enforced from 01.01.2016); dated 11.07.2017 № 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 26.12 2017 № 124-VI (shall be enforced from 01.01.2018); dated 28.12.2018 No. 210-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Article 32. Budget programs
The budget program of the republican budget programs administrator, who does not develop a development plan for the state body, shall determine the direction of the republican budget expenditures, interconnected with the powers defined in the regulation on the state body.
The budget program of the local budget programs administrator shall determine the direction of local budget expenditures, interconnected with the goals, target indicators defined in the relevant development plan for the region, the city of republican status, the capital, or the powers defined in the regulation on the state body.
The budget programs of the republican budget programs administrators that draw up development plans for the state bodies shall be approved by the budget programs administrators in agreement with the authorized central state planning and budget planning bodies.
Budget programs of republican budget programs administrators that do not draw up development plans for state bodies shall be approved by budget programs administrators in agreement with the authorized central budget planning body.
Budget programs of administrators of local budget programs shall be approved by administrators of budget programs in agreement with the relevant local authorized state planning agency, with the exception of budget programs of administrators of local budget programs financed from the budgets of cities of district significance, villages, townships, rural districts, which are approved in agreement with local authorized bodies on state planning of districts (the cities of regional importance).
In budget programs (subprograms) of the administrator of budget programs of the higher budget aimed at providing targeted development transfers or loans to lower-level budgets, a list of local budget investments, financed through targeted transfers on development or loans from a higher budget shall be reflected, in the context of lower-level budgets with the name of local budget investments and expenditures for the planning period.
In budget programs (subprograms) of the administrator of the budget programs of the higher-level budget, aimed at provision of targeted current transfers, with the exception of targeted current transfers, aimed at compensating losses on income of lower-level budgets in accordance with subparagraph 1) of paragraph 2 of Article 46 of this Code, the direct outcome indicators shall be reflected in the context of subordinate budgets.
Approved (re-approved) budget programs of the administrator of the budget programs of the higher-level budget, aimed at providing targeted development transfers or loans to lower-level budgets, by administrators of republican or regional budget programs shall be reported to the local authorized bodies for state planning of regions, cities of republican significance, the capital city or districts (cities of regional significance ) not later than three working days from the date of their approval (re-approval).
Approved (reapproved) budget programs of the administrator of budget programs of the higher budget, aimed at providing targeted development transfers or loans to lower-level budgets, by administrators of district (regional) budget programs shall be brought to the Akims of the cities of district significance, villages, townships, rural districts no later than three working days from day of their approval (reapproval).
clarifying the budget in the event of a change in their financing levels and outcome indicators in agreement with the central authorized bodies for state and budget planning or with the central authorized body on budget planning in accordance with paragraph 2 of this Article;
adjustment of the budget in the event of a change in their financing amounts and outcome indicators in agreement with the central authorized body on budget planning.
Local budget programs shall be re-approved in case of changes in their financing amounts and outcome indicators when clarifying or adjusting the local budget in agreement with the local authorized state planning authority in accordance with paragraph 2 of this Article.
4-1. Changes shall be entered on budget programs at the initiative of the budget programs administrator without changing the annual amount of funding for the budget program without coordination with the authorized central state planning and budget planning bodies or in coordination with the authorized local state planning body in the cases provided for in part two of paragraph 9, paragraphs 9-1 and 9-3 of Article 85 of this Code.
Administrators of budget programs, when making changes to budget programs on their own initiative, within three working days shall send approved changes to budget programs, respectively, to the central or local authorized body for budget execution in the order of notification.
For budget programs, financed from different sources, a budget subprogram shall be allocated for each of the funding sources.
If the budget program has subprograms, the indicators of the direct result shall be reflected at the subprogram level.
According to local budget programs aimed at implementing activities through targeted development transfers from a higher budget, the direct result indicators shall be indicated in the context of local budget investment projects.
The head of the budget program shall bear responsibility in accordance with the laws of the Republic of Kazakhstan for an unqualified planning and failure to achieve the results of the budget program.
Footnote. Article 32 is in the wording of the Law of the Republic of Kazakhstan dated 12.11.2015 № 395-V (shall be enforced upon expiry of ten calendar days after its first official publication); as amended by the laws of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 30.11. 2017 № 112-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Article 33. Types of budget programs
implementation of state functions, authority, and provision of state services arising from them;
providing transfers and budget subsidies;
provision of budget credits;
implementation of budget investments;
implementation of capital expenditures;
execution of the state obligations;
investment of the specific deposit;
target transfer.
To achieve the goal of development plan for the state body or a development plan for a region, a city of republican status, the capital, single end result, the costs of exercising state functions, powers and public services arising from them, making capital expenditures, making budget investments through the implementation of budget investment projects, providing transfers and budget subsidies can be combined into one budget program with the allocation of these costs into separate subprograms.
1) republican, approved in the structure of republican budget;
2) regional, the cities of republican significance, the capital city, approved in the structure of the regional budget, budgets of the cities of republican significance, the capital city;
3) district (city), approved in the structure of the district (the city of regional significance) budget;
4) budget programs of the district in the city, approved in the structure of the budgets of the cities of republican significance, the capital city, the city of regional significance;
This edition of subparagraph 5 is effective from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (the current edition before 01.01.2020 for the cities of district significance, villages, townships, rural districts with the population of two thousand or less people, see the archival version dated 11.07.2017 of the Budget Code of the Republic of Kazakhstan dated 04.12.2008 № 95-IV).
5) budget programs of the city of district significance, a village, a township, a rural district, approved in the structure of budgets of the cities of district significance, villages, townships, rural districts.
Budget programs of the region, the cities of republican significance, the capital city, district (city), as well as budget programs of the district in the city and budget programs of the city of district significance, a village, a township, a rural district shall be local budget programs.
1) individual budget programs implemented by one administrator;
2) distributed budget programs, approved in the structure of the budget as part of budget programs of a certain administrator of budget programs and subject to distribution during the current financial year between various administrators of budget programs.
The distribution of such budget programs shall be carried out in the manner, determined by the relevant central state bodies in agreement with the central authorized body on budget planning.
The final results of the distributed budget program shall be reflected in the budget program of the administrator of budget programs, distributing the budget program, distributed during the current financial year between various administrators of budget programs.
The direct results of the distributed budget program shall be indicated in the budget program of the administrator of budget programs, receiving funds from the distributed budget program, when distributing budget programs distributed during the current financial year between various administrators of budget programs.
Direct and end results of the distributed budget programs directed to using the reserve for the initiatives of the President of the Republic of Kazakhstan, the reserves of the Government of the Republic of Kazakhstan and local executive bodies shall be indicated in the budget program of the budget programs administrator receiving funds from these distributed budget programs.
In case of incomplete distribution of expenses provided for in the approved (revised) budget for distributed budget programs aimed at using the reserve for the initiatives of the President of the Republic of Kazakhstan, the reserves of the Government of the Republic of Kazakhstan and local executive bodies, the unallocated amount shall not be budget non-performance.
Budget programs (subprograms) for the development shall include budget expenditures aimed at implementing budget investments. The remaining budget expenditures shall refer to the current budget programs (subprograms).
Footnote. Article 33, as amended by the Laws of the Republic of Kazakhstan dd. 16.02.2012 No. 557-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dd. 23.11.2012 No. 55-V (shall be enforced from the date of its first official publication); dated 02.07.2014 № 225-V (shall be enforced from 01.01.2015); dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 28.11.2014 № 257 (shall be enforced from 01.01.2015); dated 12.11.2015 № 395-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.07.2017, № 90-VI (see Article 2 for the procedure of enforcement); dated 25.12.2020 No. 391-VI (shall be enforced ten calendar days after the day of its first official publication); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Article 34. Budget programs, aimed at the implementation of state functions, authority and the provision of public services arising from them
Footnote. Article 34 is in the wording of the Law of the Republic of Kazakhstan dated 15.04.2013 No. 89-V (shall be enforced upon expiry of thirty calendar days after its first official publication); as amended by the Law of the Republic of Kazakhstan dated 30.11.2017 № 112-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 25.12.2020 No. 391-VI (shall be enforced ten calendar days after the day of its first official publication).
Article 35. Budget programs, aimed at providing transfers and budget subsidies
1) transfers between levels of budgets;
1-1) Excluded by Law of the Republic of Kazakhstan № 90-VI of 11.07.2017 (see sub-p.1) of p.1 of art.2 for the enactment procedure);
1-2) transfers to the social health insurance fund;
2) transfers to individuals, other than cash payments to employees of state institutions;
3) budget subsidies to individuals and legal entities.
2-1 Excluded by Law of the Republic of Kazakhstan № 90-VI of 11.07.2017 (see p.3 of art.2 for the enactment procedure);
2-2. Transfers to the social health insurance fund shall be transfers of money to this fund from the republican budget:
in order to pay by the social insurance fund for providing services within the guaranteed volume of free medical care;
in order to reimburse the costs of the social health insurance fund for paying for the services of health care entities for the provision of medical care in the system of compulsory social health insurance to military personnel, employees of special state and law enforcement agencies;
in the form of state contributions for compulsory social health insurance for citizens of the Republic of Kazakhstan exempted from paying contributions to the social health insurance fund, determined by the Law of the Republic of Kazakhstan "On Compulsory Social Health Insurance".
Footnote. Article 35 as amended by the laws of the Republic of Kazakhstan dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 28.11.2014 № 257 (shall be enforced from 01.04.2015); dated 02.11.2015 № 387-V (shall be enforced upon expiry of ten calendar days after its first official publication); № 406-V of 16.11.2015 (see art. 3 for the enactment procedure); № 90-VI of 11.07.2017 (see ст. 2 for the enactment procedure).
Article 36. Budget programs, aimed at providing the budget loans
Budget loans shall be applied for:
1) the implementation of budget investment projects;
2) the implementation of foreign economic activity of the state;
3) the implementation of public investment policy by financial agencies;
4) cover the cash deficit of lower budgets;
5) the solution of problems of state social policy;
6) ensuring food security through the purchase of agricultural products.
Footnote. Article 36, as amended by the Law of the Republic of Kazakhstan dd.16.02.2012 No. 557-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Article 37. Budget programs, aimed at the implementation of budget investments
Budget investments are made through the implementation of budget investment projects and through the participation in the authorized capital of legal entities.
Footnote. Article 37 is in the wording of the Law of the Republic of Kazakhstan dated 03.12.2013 No. 150-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 38. Budget programs, aimed at the implementation of capital expenditures
The capital expenditures shall include the expenditures aimed at formation or strengthening the material-technical base, for the capital (replacement) repair and other capital expenditures in accordance with the economic classification of expenditures, except for budget investment.
Footnote. Article 38, as amended by the Law of the Republic of Kazakhstan dated 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010).
Article 39. Budget programs aimed at the fulfillment of the state obligations
Budget programs, aimed at the fulfillment of the state obligations are:
aggregate payments of remuneration, fees, fines and other payments, arising from the terms of borrowing, and payment on the hedging transaction in a specific period of time;
repayment the amount of the received loan in the manner prescribed in the loan agreement by the borrower and the performance of the other state obligations, arising from the loan agreement;
share and donor contributions to the international organizations, which member is the Republic of Kazakhstan;
fulfillment of the obligations on the state guarantees and sureties;
fulfillment of obligations under state guarantees for export support;
fulfillment of state obligations on public-private partnership projects, including state concession obligations;
other obligations of the state under the international treaties ratified by the Republic of Kazakhstan and the legislative acts of the Republic of Kazakhstan or court decisions.
Footnote. Article 39, as amended by the Law of the Republic of Kazakhstan dated23.11.2012 No. 55-V (shall be enforced from the date of its first official publication), dated 04.07.2013 No. 131-V (shall be enforced from the date of its first official publication); dated 31.10.2015 № 380-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 03.04.2019 № 243-VI (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 39-1. Budget programs, aimed at the investment of special deposit
Autonomous educational organizations and their institutions shall be accountable for achieving the performance indicators of the targeted contribution to their activities, defined in the development plans of state bodies and (or) budget programs of the respective budget programs administrators.
Footnote. Chapter 6 shall be supplemented by Article 39-1 in accordance with the Law of the Republic of Kazakhstan dated 16.02.2012 No. 557-IV (shall be enforced upon the expiry of ten calendar days after its first official publication), as amended by the Law of the Republic of Kazakhstan dated 13.06.2013 No. 102-V (shall be enforced upon the expiry of ten calendar days after its first official publication); dated 03.12.2013 № 151-V (shall be enforced from 01.01.2014); dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 28.11.2014 № 257 (shall be enforced from 01.01.2015); dated 21.07. 2015 № 337-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.11.2015 № 395-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Article 39-2. Budget programs aimed at targeted transfer
1) a non-commercial organization, established in the organizational and legal form of the fund solely to provide financing to a legal entity with 100% state participation in the authorized capital, which main subject of activity is organization and holding of an international specialized exhibition on the territory of the Republic of Kazakhstan, as well as the post-exhibition use of the territory of an international specialized exhibition;
2) an autonomous cluster fund exclusively for creation of joint ventures with participation of transnational corporations, as well as for equity participation in foreign investment funds;
3) an organization that specializes in improving the quality of loan portfolios of second-tier banks, in the event of the sale of which there may be losses;
4) a non-commercial organization, providing conditions for the activity of bodies and their organizations, as well as participants in the international financial center, solely for the acquisition of long-term assets, provision and financing of the activity of bodies and their organizations.
A legal entity with 100% participation of the state in the authorized capital, whose main activity is organizing and holding of an international specialized exhibition on the territory of the Republic of Kazakhstan, as well as post-exhibition use of the territory of an international specialized exhibition, an autonomous cluster fund, as well as an organization that provides conditions for the activities of the bodies, their organizations and participants of the international financial center shall be accountable for achieving the performance indicators of the targeted transfer to their activities, defined in the development plans of state bodies and (or) budget programs of the respective budget programs administrators.
The organization, specializing in improving the quality of loan portfolios of second-tier banks shall bear responsibility for using the targeted transfer on the directions, defined in the budget programs of the respective administrators of budget programs.
4-1. Target transfers not used for the purposes specified in the legislative acts of the Republic of Kazakhstan shall be bindingly refunded to the relevant budget no later than three months after the issuance of an order by the state audit and financial oversight bodies.
Footnote. Chapter 6 is supplemented by Article 39-2 in accordance with the Law of the Republic of Kazakhstan dated 28.11.2014 № 257 (shall be enforced from 01.01.2015); as amended by the laws of the Republic of Kazakhstan dated 12.11.2015 № 395-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 17.11.2015 № 407-V (shall be enforced from 01.01.2016); dated 27.02.2017 № 49-VI (shall be enforced from 01.01.2017); dated 13.03.2017 № 53-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.12.2017, № 122-VI (shall be enforced from 01.01.2018); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Article 40. Classification of expenses of state bodies carrying out operational-search activities, intelligence and counterintelligence activities, and their institutions, as well as ensuring the security of protected persons and objects
Footnote. The heading of Article 40 is as amended by the Law of the Republic of Kazakhstan dated 25.12.2020 No. 391-VI (shall be enforced ten calendar days after the day of its first official publication).
Expenses of special state bodies engaged in intelligence and counterintelligence activities, and their institutions, as well as ensuring the security of protected persons and objects, are classified according to one functional group, reflecting one specific economic classification of expenses for the following budget programs:
for one budget program designed to perform state functions and authority, providing transfers and making capital expenditures;
for one budget program aimed at the implementation of budget investment.
Expenses for the implementation of the operational-search activities of state bodies and their institutions, with the exception of special state bodies, are classified according to one functional group, according to one budget program aimed at performing state functions and powers, with the exception of capital expenses and expenses for the implementation of budget investment projects, with reflection according to one specific economic classification of expenses.
Footnote. Article 40 as amended by the Law of the Republic of Kazakhstan dated 25.12.2020 No. 391-VI (shall be enforced ten calendar days after the day of its first official publication).
Article 41. State task
The allocation of budgetary funds to legal entities with state participation in the authorized capital for the state task execution is carried out without increasing the authorized capital.
1) the National Chamber of Entrepreneurs of the Republic of Kazakhstan for compliance with the rights and legitimate interests of business entities;
2) the antimonopoly body for compliance with the legislation of the Republic of Kazakhstan in the field of competition protection, issued in the manner determined by the antimonopoly body.
The conclusion of the antimonopoly body may determine the mandatory scope of the state task that the legal entity responsible for the state task implementation subcontracts in compliance with the competitive procedures provided for by the legislation of the Republic of Kazakhstan on public procurement.
Fulfillment of state task is carried out without following the tender procedures, provided by the legislation of the Republic of Kazakhstan on the state procurement.
The legal entity responsible for the implementation of the state task is allowed to transfer the state task to a subcontractor (co-executor) in the amount of not more than fifty percent of the amount of budget funds for the corresponding financial year allocated for the implementation of the state task.
The provision of part three of this paragraph shall not apply to quasi-public sector subjects operating in healthcare, in the field of implementing state information policy, and to the Elbasy Academy corporate fund.
4-1. Orders can be attributed to state tasks:
1) on implementation of the state information policy, including work on its technical and methodological support;
2) in the areas of modernization of public consciousness, interethnic relations and internal political stability, support for compatriots abroad and kandaces within the country, social development, methodological support for the implementation of state youth and family policy;
3) in aerospace activities;
4) in environmental protection;
5) on implementation of state policy in religious activities and interaction with religious associations;
6) National Olympic and Paralympic Committees of the Republic of Kazakhstan;
7) in culture and tourism activities, in the protection and use of historical and cultural heritage facilities;
8) in education, science;
9) in healthcare, including medical support services for certain categories of civil servants and citizens of the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan;
10) on organizing and conducting training for healthcare workers and other servants of the Administration system of the President of the Republic of Kazakhstan;
11) to ensure the safety of navigation and shipping, the maintenance of navigable waterways and locks;
12) for the construction, reconstruction, repair, maintenance and development of a network of public roads of international and national scale;
13) on the state geological study of the subsoil, as well as collection, storage, processing and provision of geological information;
14) on conducting research in sustainable economic development of the national economy, scientific economic expertise of draft regulatory legal acts;
15) to improve regulatory and technical documents in architecture, urban planning and construction, as well as housing and utility services;
16) for the inventory of underground and above-ground communications in the built-up area of settlements;
17) to increase the availability of information on land resources;
18) on development and improvement of urban planning documents of national importance;
19) to carry out activities within the framework of energy conservation and energy efficiency in the housing and utility services;
20) in nuclear, radiation and nuclear security;
21) on creation, updating and publication of state topographic maps and plans, creation, development and maintenance of state geodetic networks, preparation of technical projects, formation and maintenance of the National spatial data fund, creation and development of the National spatial data Infrastructure;
22) in the social and labor sphere;
23) accounting for oil and gas condensate, provision of dispatching services of performance indicators in the oil and gas industry of the Republic of Kazakhstan;
24) in support for Kazakhstan personnel and producers in hydrocarbons and uranium;
25) in the population migration;
26) for the provision of public services, implementation of budget investment projects and performance of other tasks on behalf of and (or) in agreement with the President of the Republic of Kazakhstan.
This list is exhaustive and cannot be extended.
4-2. To be included in the list of state tasks, the orders specified in paragraph 4-1 of this article must meet one of the following criteria:
1) absence of any other possibility of ensuring national security, the defense capability of the state or protecting the interests of society;
2) the use, operation and maintenance of strategic facilities, critical infrastructure facilities, including information and communication infrastructure, owned by the state, by virtue of ensuring public interests and national security;
3) absence of competition in the relevant market for goods, works and services;
4) exclusivity and uniqueness of goods, works, services, intellectual property objects.
It shall be prohibited to plan a state task and include orders in the list of state tasks that do not meet the criteria provided for in part one of this paragraph. Transactions concluded in violation of this paragraph may be declared invalid by the court at the suit of interested persons.
Footnote. Article 41, as amended by the Laws of the Republic of Kazakhstan dated 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010); dated 19.01.2011 No. 395-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 01.02.2012 No. 551-IV (shall be enforced upon expiry of ten calendar days after its first official publication), dated 04.07.2013 No. 130-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 10.06.2014 № 208-V (shall be enforced from 01.01.2015); dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.12.2014 № 269-V (shall be enforced from 01.01.2015); dated 12.11.2015 № 395-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.05.2017 № 65-VI (shall be enforced from 01.01.2018); dated 30.11.2017 № 112-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2018 № 174-VI (shall be enforced upon expiry of ten calendar days after its first official publication); № 280-VI of 13.12.2019 (shall be enforced since 01.01.2020); dated 25.12.2020 No. 391-VI (shall be enforced ten calendar days after the day of its first official publication); dated 03.01.2022 No. 101-VII (shall be enforced sixty calendar days after the date of its first official publication); dated 21.12. 2022 No. 167-VII (shall be enforced ten calendar days after the date of its first official publication); dated 30.12.2022 No. 177-VII (shall be enforced ten calendar days after the date of its first official publication).
Article 41-1. Conventionally financed spendings
Footnote. Article 41-1 is excluded by the Law of the Republic of Kazakhstan dated 25.12.2020 No. 391-VI (shall be enforced ten calendar days after the day of its first official publication).
Chapter 7. INTERGOVERNMENTAL FISCAL RELATIONS
Article 42. General provisions on intergovernmental fiscal relations
The transfer of expenses and certain types of receipts from one level of the budget to another shall be only when the amendments and supplement to the Code are made.
Footnote. Article 42, as amended by the Constitutional Law of the Republic of Kazakhstan dated 03.07.2013 No. 121-V (shall be enforced upon expiry of ten calendar days after its first official publication); by the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 28.12.2018 No. 210-VI (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 43. Principles of intergovernmental fiscal relations
Intergovernmental fiscal relations are based on the following principles:
1) equality of regional budgets, budgets of the cities of republican significance, the capital city in relations with the republican budget, district (cities of regional significance) budgets in relations with the higher regional budget, budgets of the cities of district significance, villages, townships, rural districts in relations with the higher district (the cities of regional significance) budget;
2) the effective distribution of the proceeds, taking into account the simultaneous observation of the following criteria for their separation:
for the lower budgets the tax and non-tax revenues, which are stable and independent of external factors shall be fixed;
tax and non-tax revenues, representing the payment for services, rendered by state institutions arrive to the budget, whereof these services are funded;
taxes, having redistributive character and uneven distribution of the tax base are assigned to the higher levels of the budgets of the budgetary system;
when fixing taxes and other obligatory payments to the budget, the preference is given to the level of the budget, which will ensure the highest level of their collection;
taxes charged on the tax base, which has the clear territorial binding, are assigned to the local budgets;
3) the equalization of the level of fiscal capacity of the administrative-territorial units of the Republic of Kazakhstan;
4) ensuring the provision of the same level of public services by local executive bodies;
5) the efficiency and effectiveness of public services –the strengthening of public services for the level of government that can ensure the most effective and efficient provision of public services;
6) the maximum approaching of the level of public services to its beneficiaries - the transfer of execution of services at the lowest possible level of the budget system in order to better address the needs of the beneficiaries and the improvement of quality of public services.
Footnote. Article 43 as amended by the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 44. Forms of regulation of intergovernmental fiscal relations
1) between the republican and the regional budget, the budgets of the city of republican status and the capital:
transfers;
budget loans;
2) between the regional and district (the city of regional importance) budgets:
transfers;
budget loans;
standards of income distribution;
3) between the district (the city of regional significance) budget and budgets of the cities of district significance, villages, townships, rural districts:
transfers;
budget credits.
Target current transfers transferred in accordance with subparagraph 1) of paragraph 2, of Article 46 of this Code to compensate for losses resulting in a reduction in local budget revenues shall be reflected only in the receipts of lower-level budgets.
By the decision of the local executive body the amount of targeted transfers for development, allocated from the regional budget and unused (under-used) during the financial year, with the exception of the allocated from reserve of the local executive body of region, can be used (re-used) in the next financial year, in accordance with their purpose.
According to the decision of local executive body of the district (city of regional significance) unused (underused) during the financial year the amounts of targeted transfers on development, allocated from the regional (the city of regional significance) budget, with the exception of allocated from the reserve of the local executive body (the city of regional significance); may be used (pre-used) in the next financial year with the compliance with their targeted intention.
Unused (underused) amounts of targeted transfers in the past financial year, allocated from the republican, regional or district ( the city of regional significance) budget, for which the Government of the Republic of Kazakhstan, the local executive body of the region or district (the city of regional significance) did not make a decision on the further use (pre-use) in the current financial year shall be refunded to the higher-ranking budget that has allocated them before March 1st of the current financial year from the balance of budget funds for the beginning of the year.
Footnote. Article 44, as amended by the Law of the Republic of Kazakhstan dd. 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010); as amended by the Law of the Republic of Kazakhstan dated 16.02.2012 No. 557-IV (shall be enforced upon the expiry of ten calendar days after its first official publication), dated 03.12.2013 No. 150-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.11.2015 № 393-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.11.2015 № 395-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.07.2017 № 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication);
Article 45. Transfers of a general character
between the republican budget and regional, the cities of republican significance, the capital city budgets – by the Law of the Republic of Kazakhstan;
between the regional budget and district (the cities of regional significance) budgets – by the decision of regional maslikhat;
between the district (the city of regional significance) budget and budgets of the cities of regional significance, villages, townships, rural districts – by the decision of the district maslikhat (the city of regional significance) on the district (the city of regional significance) budget.
The amounts of general transfers shall be subjects to change every three years, except for the amounts of general transfers between the district (the city of regional importance) budget and budgets of the cities of district significance, villages, townships, rural districts, which are set annually on a rolling basis for the planning period.
It is not allowed to change the volume of transfers of a general nature between the district (cities of regional significance) budget and the budgets of cities of district significance, villages, settlements, rural districts during the current financial year.
4-1. To the Law (the decision of the regional Maslikhat) on the amounts of general transfers or on the decision of the Maslikhat of the district (the city of regional significance) on the district (the city of regional significance) budget, the minimum amounts of financing from the local budget of certain directions of expenditures shall be applied.
The minimum amounts of financing from the local budget of certain directions of expenditures shall be determined by central or local authorized bodies of the relevant branch (sphere).
The directions of expenditures, for which the minimum amounts of their financing from the local budget are established, shall be determined taking into account their priority and social significance.
4-2. In the course of budget execution, local executive bodies of regions, cities of republican status, the capital, districts (cities of regional status), as well as the offices of akims of cities of district scale, villages, towns, rural districts shall have the right to redistribute funds according to budget programs (subprograms), for which minimum financing amounts are established from the local budget of certain expenditure areas, in agreement with the authorized body of the relevant industry (sphere), which determined the minimum amount of financing from the local budget of certain expenditure areas, to other expenditure areas.
In case of financing by local executive bodies of certain directions of expenditures from the local budget below the minimum amounts, established by law (by the decision of the regional Maslikhat) on the amounts of general transfers, the sum of exceeding the established amount, taking into account the changes introduced in it in accordance with part one of this paragraph over the annual sum of the consolidated plan of financing for payments at the end of the relevant financial year, following the results of the expired financial year shall be subject to refund to the higher budget not later the 1st of March of the current financial year.
In case of financing by the local executive bodies of certain directions of expenditures from the local budget below the minimum amounts, set by the Law (by the decision of regional Maslikhat) on amounts of general transfers, as amended, in accordance with the first part of this paragraph, the Akims of oblasts, the cities of republican significance, the capital city, districts, cities of regional significance shall bear responsibility in accordance with the laws of the Republic of Kazakhstan.
The volume of transfers of a general nature is determined by the central and local authorized bodies for state planning.
When exceeding the predicted amount of expenses over the predicted amount of income of the local budget, the budget subventions to local budgets from the higher budget are set.
Predicted amounts of revenues and expenses of the district budget (the city of regional significance) shall be calculated by the local authorized body on state planning area in the manner, determined by the local executive body area.
9-1. The prediction of revenues of the budgets of regions, cities of republican significance, the capital city for establishing the amounts of general transfers for a three-year period shall be determined by the central authorized body on state planning.
The prediction of the revenues of the budgets of districts (the cities of regional significance) for establishing the amounts of general transfers for a three-year period shall be determined by the local authorized body on state planning of the region.
9-2. The amounts of general transfers from the budgets of oblasts, cities of republican status, the capital shall be established taking into account:
1) the volume of current costs, taking into account the updated plan as of May 1 of the year preceding the planned period, in accordance with the methodology for calculating general transfers submitted by local executive bodies;
2) the forecast volume of current costs for preschool education and training, for primary, basic secondary and general secondary education, submitted by the authorized education body in agreement with local executive bodies of oblasts, cities of republican status, the capital;
3) information on indicators and coefficients, formed in accordance with the methodology for calculating general transfers, provided by the central authorized bodies of the relevant industries (spheres) in agreement with the local executive bodies of oblasts, cities of republican status, the capital;
4) information on the forecast of costs of local budget development programs aimed at implementing the documents of the State Planning System, provided by the central authorized bodies of the relevant industries (spheres) in agreement with the local executive bodies of oblasts, cities of republican status, the capital.
The central authorized body for state planning shall draft a conclusion on the calculation of general transfers and submit it for examination by the Republican Budget Commission.
Examination and determination of the general transfer amounts shall be completed no later than August 1 of the current financial year.
The heads of central authorized bodies of the respective industries (spheres) and akims of oblasts, cities of republican status, the capital shall be accountable for validity, reliability of the information provided for the calculation of general transfers in accordance with the laws of the Kazakhstan.
The central authorized bodies of the relevant sectors (areas) shall provide budgetary monitoring of the indicators used in the calculation of general transfers, targeted transfers included in the local budget base, and the minimum amount of funding established by the law on the general transfers volumes.
As of the end of the year, the central authorized bodies of the relevant industries (spheres) shall direct the budget monitoring results to the central authorized body for budget execution in order to generate an analytical report on the relevant budget program execution.
Budget monitoring and formation of an analytical report on the relevant budget program execution shall be carried out in accordance with the methodological and methodic approaches established by the authorized body for budget execution.
Footnote. Article 45, as amended by the Law of the Republic of Kazakhstan dd. 24.11.2011 No. 495-IV (shall be enforced upon the expiry of ten calendar days after its first official publication), dated 15.04.2013 No. 89-V (shall be enforced upon the expiry of thirty calendar days after its first official publication), dated 03.12.2013 No. 150-V (shall be enforced upon the expiry of ten calendar days after its first official publication); dated 02. 07.2014 № 225-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.07.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.07.2017 № 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 30.11.2017 № 112-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 28.12.2018 No. 210-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 30.06.2021 No. 60-VII (shall be enforced upon the expiration of ten calendar days after the day of its first official publication); dated 31.12.2021 No. 100 (shall be enforced ten calendar days after the date of its first official publication); dated 30.12.2022 No. 177-VII (shall be enforced ten calendar days after the date of its first official publication).
Article 46. Targeted transfers
1) higher budgets to lower ones, aimed at compensating the losses of lower budgets, resulting from the adoption of laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan, representative and executive bodies of the oblast, district (the city of regional significance), increasing expenditures and (or) reduction of incomes of local budgets;
2) by the lower budgets to the higher budgets, in order to compensate the loss of the higher budgets, resulting from the adoption of legislative acts, acts of the President of the Republic of Kazakhstan, entailing the increase of expenses of the higher budget in connection with the transfer of state functions from a lower level to a higher level of state administration.
Targeted transfers on development for implementation of local budget investments shall be allocated to lower budgets in a single amount with a per-object distribution in budget programs.
Distribution of targeted transfers for development between local budget investments shall be carried out by local executive bodies, taking into account the amount of financing, provided in the relevant local budgets for these purposes, in accordance with the procedure, established by the central authorized body on budget planning.
5-1. Targeted transfers for development from higher budget to lower budgets shall be allocated by co-payment of investments from the lower local budget.
Note!
Part two of paragraph 5-1 shall be valid until 01.01.2026 in accordance with the Law of the Republic of Kazakhstan dated 30.12.2022 No. 177-VII.
The condition of co-financing of budget investments from the lower-level local budget shall not apply to budget investment projects within the pilot national project in education.
Note!
Amendments to part one of paragraph 7 shall be valid until 01.01.2026 in accordance with the Law of the Republic of Kazakhstan dated 30.12.2022 No. 177-VII.
Note!
Part two of paragraph 7 shall be valid until 01.01.2026 in accordance with the Law of the Republic of Kazakhstan dated 30.12.2022 No. 177-VII.
In case of insufficient resources in the local budget, the expenses on increasing the estimated cost of local budget investments of strategic and (or) social importance, implemented through targeted transfers for development from the republican budget in the capital city, in connection with the adjustment of design estimates or inclusion of additional components in it not provided for in the feasibility study or the model project, which are more than 1,000,000 times the monthly calculation index established by the law on the republican budget, shall be carried out at the republican budget expense.
If there are insufficient resources in the local budget, the expenses on increasing the estimated cost of local budget investments, having strategic and (or) socially important significance, realized through targeted transfers for the development from the republican budget in the capital city city, in connection with the adjustment of design estimates or the inclusion of additional components in it, not provided in the feasibility study or the model project, amounting to more than 1,000,000 times the monthly calculation index, established by the law on the republican budget, shall be carried out at the expenses of the republican budget.
The local executive body of the district (the city of regional significance) on the results of the year shall submit a report on the direct and final results, achieved through the use of allocated targeted transfers, in accordance with budget programs (subprograms) to the relevant local executive body of the region.
The local executive bodies of the regions, the cities of the republican significance, the capital city on the results of the year shall submit a report on the direct and final results, achieved through the use of allocated targeted transfers, in accordance with the budget programs (subprograms) to the relevant administrator of the republican budget programs.
Administrators of the republican budget programs on the results of the year shall submit a report on the direct and final results, achieved through the use of allocated targeted transfers, in accordance with the budget programs (subprograms) to the central authorized body on budget execution.
Footnote. Article 46 is in the wording of the Law of the Republic of Kazakhstan dated 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010), as amended by the Laws of the Republic of Kazakhstan dated 24.11.2011 No. 495-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 16.02.2012 No. 557-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 23.11.2012 No. 55-V (shall be enforced from the date of first official publication), dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication), dated 03.12.2013 No.150-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 02.07.2014 № 225-V (see Article 2 for the procedure of enforcement); dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.11.2015 № 393-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.07.2017 № 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 30.11.2017 № 112-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.11.2022 No. 157-VII (shall be enforced ten calendar days after the date of its first official publication); dated 30.12.2022 No. 177-VII (shall be enforced ten calendar days after the date of its first official publication).
Article 47. Budget loans to lower budgets
Footnote. Article 47, as amended by the Law of the Republic of Kazakhstan dated 16.02.2012 No. 557-IV (shall be enforced upon expiry of ten calendar days after its official publication); dated 07.04.2016 № 487-V (shall be enforced from the date of signing); dated 11.07.2017 № 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 48. Responsibility for failure to achieve the results when using the transfers
1) is excluded by the Law of the Republic of Kazakhstan dated 30.11.2017 № 112-VI (shall be enforced upon expiry of ten calendar days after its first official publication);
2) the first head of administrators of budget programs of higher budget for not transferring targeted transfers to lower budgets in accordance with the individual financing plan for payments;
3) The Akim of the region, the city of the republican significance, the capital city, the district (the city of regional significance), the city of district significance, the village, the township, the rural district and the first head of the relevant administrators of local budget programs for using of targeted transfers, not in accordance with the approved budget program, including with the full absorption of budget funds, failure to report on the results, achieved through the use of targeted transfers received;
4) The Akim of the region, the city of the republican significance, the capital city, the district (the city of regional importance), the city of district significance, the village, the township, the rural district, the first head of administrators of budget programs of lower budget for failure to obtain targeted transfers, received from the higher budget, resulting in failure to achieve the results;