Problems of funds’ formation and use of local budgets in Kazakhstan

Abstract

Leading, decisive role in the formation and development of any modern society’s economic structure
plays government regulation, carried out within the framework of the chosen economic policy authority.
One of the most important mechanisms that allow the state to carry out economic and social regulation
is a financial mechanism – the financial system of a society, the main element of which is the state budget.
Exactly through the financial system, the government forms centralized and affects the formation of
decentralized funds, providing the ability to perform functions assigned to public authorities. The value
of local budgets, including both regional budgets and cities of regional importance and areas, can hardly
be overestimated; almost all the activities of providing public services to the population are carried out
at this level. The article outlines the basic problems of formation and use of local budgets’ funds in Kazakhstan.
In particular, the authors analyze the dynamics of tax receipts and non-tax payments to local
budgets. The article considers the role and economic essence, functions and structure of local budgets.
The basic problems of the local budgets’ use are revealed and the ways of their solution are offered.