2.1 Legal basis for the functioning of the financial system in the rok

The financial system consists of a large number of areas and units, and only it can be analyzed to understand how such a complex mechanism may operate. A source and a regulator of the financial system are the legislative and legal acts. It is based on their mechanism can be seen of the financial system, to understand how to accumulate and are distributed and redistributed financial resources. In this course we will look at the work of the legislative and legal acts which constitute the basis of the financial system.

Public finance act one of the main areas of the financial system and the state budget - one of the largest of their units. That it unite the most important revenues and expenditures. Budget your toolkit combines these key financial categories like taxes, spending, government loan, and others, in their interaction and dynamics. Considering the socio-economic reality of the state budget should be noted that it is defined by:

• Method of production;

• The presence of ownership of the means of production;

• functioning of the basic economic laws of the State;

• The nature of industrial relations;

• Nature, aims and objectives of the state.

• The content of socio-economic nature of the state budget shows that he is both:

• Re-ND;

• The instrument of government regulation and economic stimulus;

• The instrument of effective influence on the process of expanded reproduction;

• The lead element of the financial and budgetary systems of the state;

In the budget in terms of our centralized much of the cash resources that are indispensable for the implementation of the state's functions, such as economic, social and political. Budget is the budget system. A budget system is governed by the "Law of the RK on the Budget System"

Law of the Republic of Kazakhstan dated 04.12.2008 N 96-4

"On Republican Budget for 2009-2011"

Article 1.

To approve the national budget for 2009 - 2011 years, according to applications, respectively, including the year 2009 in the following amounts:

1) income - 2,845,331,476 thousand tenge, including:

tax revenues - 1,827,322,214 thousand tenge;

Non-tax revenues - 55,352,958 thousand tenge;

Proceeds from sale of capital - 17,957,823 thousand tenge;

income transfers - 944 698 481 thousand tenge;

2) cost - 3,175,298,064 thousand tenge;

3) The net budgetary loans - 46,154,983 thousand tenge, including:

low cost loans - 60,177,000 thousand tenge;

repayment of budget credits - 14,022,017 thousand tenge;

4) the balance of financial assets - 195 242 554 thousand tenge, including:

acquisition of financial assets - 196 742 554 thousand tenge;

proceeds from the sale of state assets - 1 500 000 thousand tenge;

5) deficiency - -571 364 125 thousand tenge, or 3.4 percent of gross domestic product of the country;

6) financing the budget deficit - 571 364 125 thousand tenge.

Article 2.

To provide for the national budget for 2009 income rents for the use of RC complex "Baikonur" in the amount of 14,202,500 thousand Tenge and military training ground in the amount of 3,061,071 thousand Tenge.

Article 3.

To approve the amount of revenue for the year 2009, sent to the National Fund of Kazakhstan, according to Annex 4.

Article 4.

To establish that the income of the relevant budget shall be entered:

by the code of "tax on mineral extraction" classification of income of a unified budget classification - debt subsoil of royalties, as well as royalties on subsoil use contracts, which guarantee the stability of retained tax regime;

by the code of "Social security tax" income classification of a unified budget classification - in arrears, previously transferred to the Pension Fund, National Center for Pension Payments, Fund of Obligatory Medical Insurance Fund, the State Social Insurance Fund, promotion of employment, as well as road user charges, previously received by the Road Fund.

In this case, taxpayers engaged in activities under subsoil use contracts, which guarantee the stability of retained tax regime, reduce the above payments or social security tax on the amount of payments to the State Social Insurance Fund, calculated in accordance with the Law of the Republic of Kazakhstan "On Compulsory Social Insurance";

by the code "Gasoline (except aviation) of own production, sold wholesale producers" - debt collection with gasoline, previously supplied to the Road Fund;

by the code "Diesel fuel its own production, the producers realized in bulk" - debt collection with diesel fuel, supplied to the earlier Road Fund.

Article 5.

Negative balance, formed on December 31, 1998 in the excess of the amounts accrued benefits for employers of temporary disability, maternity, childbirth, funeral, paid from State Social Insurance Fund, calculated on the amount of deductions in the fund, monthly count the payment of social tax within 4 percent of payroll.

2.2 Status and Problems of Development of the financial system RK

According to many experts, Kazakhstan already has overcome the most painful after reaching the peak of financial stabilization of structural economic reforms and has achieved notable success by implementing its own strategy and tactics of economic reforms.

In Kazakhstan, for fifteen years of independence has completely changed the system of economic and social relations. Since the start of the 1994 global economic reforms largely achieved financial stabilization, is nearing completion of the privatization of all state property, there has been a rise in production. In 1993, inflation stood at more than two thousand percent, then in 2001 it dropped to 23.7% and now amounts to about 7-9%. There have been almost complete liberalization of prices and removal of most restrictions on foreign trade.

In 1996, the first time in recent years has been achieved growth in gross domestic product, compared with the previous year by 0.5%. Refinancing rate of the National Bank of Kazakhstan, is reached in mid-1994, 450-480%, decreased by more than 20 times.

Conducting a rational policy of public spending ensured reducing the budget deficit.

In turn, this allowed to lay a solid foundation to ensure the financial stability of the economy: created the necessary prerequisites to attract investment, promote moderate economic growth, recovery and restructuring the national economy and improve on this basis, the quality of life.

One of the main sections of the government program to deepen the reform is to reform the management of financial resources of the country and its adaptation to market conditions. In this regard, in recent years, the government's efforts were aimed primarily at streamlining the budget expenditures, strengthening financial discipline, creating a real ownership and stimulate investment in the development of the economy, improvement of intergovernmental relations and the formation of an effective mechanism for managing internal and external public debt, strengthening and development of the market for government securities and other instruments of market infrastructure.

Despite the complexity of the economic situation in recent years from the national budget allocated significant funds to support domestic producers, sanitation and rehabilitation of public enterprises, financing investment and social projects, facilities for small and medium businesses. In particular, only 200B year it is sent to more than 15% of the budget, or 26.9 billion, including the development of agriculture - 9.8 billion, or 91.4% of the forecast. Loans to finance investment projects amounted to 3.6 billion tenge, or 99.5% of the plan, and the Rehabilitation Bank to carry out procedures for insolvent enterprises - 5.8 billion, or 97.1% of the plan.

In order to attract foreign capital to expand production and acquire skills in marketing and management in 2005 - 2006 years of the transferring of some large enterprises of ferrous and nonferrous metallurgy, chemical industry to foreign investors. You can, of course, as you wish to criticize the government for these measures, especially since no one is immune from mistakes in this extremely complex and totally new to us really, but the fact remains. These companies in 2006 alone made product by more than 190 billion tenge, which is almost 28% of the total industrial output.

Compared with the corresponding period of 2005 increased the production of steel (6%), rent ready (7%), refined copper (1.4 times), magnesium and magnesium alloys (1.5 times), lead in concentrate ( 5.8%), alumina (5.8%). Also increased the production of iron ore and pig iron. But most importantly - are able to maintain employment, to avoid major social conflicts are already taking measures to strengthen control over tax revenues from these businesses. A key objective of the government is creating a real owner, to expand the revenue base budget. In 2006, greatly accelerated the pace of privatization in accordance with certain individual projects. Currently, nearly all large enterprises in private hands. At this stage a lot of work to complete the privatization of individual projects.

However, as in other transition economies, the development of the public sector in recent years have hampered decline in government revenues as a result of severe crisis and high inflation in previous years, financial condition and fiscal discipline, especially in public enterprises, a weak tax administration and the complexities of the taxation of the growing private sector. For example, state budget revenues to the level of GDP declined from 22.3% in 2003 and to 16.9% in 2006, including revenue from 15.6% to 11% of GDP.

The main share of tax revenue in 2006 was due to tax consumers - 40.7% of the total amount of taxes.