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.
