An Innovative Approach to the Development of Local Self-Government in Kazakhstan: Decentralization of the Budget System

Abstract

This article discusses budget decentralization as an innovative approach to the development of local self-government. It carries out an analysis of the development of local selfgovernment in the context of 2019-2021 fourth-level (rural) budget revenues in Kazakhstan, and considers the priorities, competencies and responsibilities assigned to state and local government bodies. It also identifies the primary trends in decentralization reform and offers recommendations for improving the efficiency of fourth-level budget management. Budgetary decentralization is shown to be an important innovative solution for strengthening the financial independence of rural areas by addressing locally important issues and, accordingly, improving their quality of life. The main purpose of this study is to substantiate innovative approaches to improving the efficiency of the system of local self-government and fourth-level budget management in the context of decentralization reform. It contributes to scholarly understanding of the relationship between budgetary decentralization and rural development. Methods of theoretical research, analysis and synthesis, and a systematic approach were used. Economic analysis (horizontal and vertical analysis) using qualitative and quantitative research methods was used to analyze the revenues of independent budgets in Kazakhstan. Concrete conclusions based on the results of the implementation of this multilateral process are proposed. A direct relationship is found between budgeting participation, management effectiveness and the perception of innovation. Moreover, effective work at any level of government is primarily conditioned by several factors: transparency and accountability; clearly defined powers and functions; and an independent budget with stable revenue sources.