PRESS RELEASE about the seminar -meeting on the implementation of introduction of the forecast consolidated financial statements on the local budget

The Ministry of Finance of the Republic of Kazakhstan held a seminar-meeting with the participation of the Director of the ADB Representative Office in Kazakhstan N.Mannapbekov and employees of the Departments of Economy and Finance of 17 regions of the country chaired by Vice Minister of Finance of the Republic of Kazakhstan D.E. Zhanalinov on November 12.

The purpose of the meeting is to discuss the next stage of the ongoing reform in the public sector on application of the accrual method at the budget planning stage.

         The best international practice of OECD countries shows that accrual budgeting is the most complete information about the consequences of budget decisions.

In Kazakhstan, the current budget system is built on a cash basis and represents only information about cash flows in the form of budget receipts and expenditures.

However, modern budgeting trends are aimed at establishing the interdependence between budget planning and execution, budget accounting and cash-based reporting, as well as accounting and financial reporting on the accrual basis.

The amendments to the Budget Code adopted in 2017 relate not only to conceptual provisions, but also to the deadlines for the submission of forecast consolidated financial statements: for

the republican budget - from 2020;

according to local budgets - from 2023.

Since 2020, administrators of republican budget programs have been forming forecast consolidated financial statements using the "FCFS" module in the Integrated Information System of State Planning, which includes two subsystems: "FCFS ABP" and "FCFS RB", which makes a significant contribution to the disclosure of information on assets and liabilities, including long-term liabilities.

In order to implement the reform at the level of local budgets, an Action Plan for 2021-2022 was approved by the order of the Minister of Finance dated December 10, 2020, according to which the stages of methodology development, automation issues, pilot and training were envisaged.

By Order of the Minister of Finance No. 1206 of December 15, 2020, a Working Group was created, including representatives of all 17 regions of the country.

The rules for the preparation of forecast consolidated financial statements for the regional budget, the budget of the city of republican significance, the capital have been developed, agreed with the members of the Working Group and approved by the Order of the Minister of Finance dated October 27 of the current year No. 1108. This order was registered with the Ministry of Justice under No. 24948 dated October 28, 2021.

The Ministry of Finance plans to hold a number of training seminars and discussions with members of the Working Group on "pilot", automation and implementation of forecast consolidated financial statements in all 17 regions of the country starting from 2023.

 

 

The joint work will be continuing.