BAKU, Azerbaijan, April 11. Limits on new initiatives will be determined depending on the growth rate of budget expenses which shouldn’t exceed the average annual growth rate, Vice Minister of the country's National Economy Azamat Amrin said, Trend reports via the ministry.
Amrin made the remark during discussions of the revision of budget processes and the introduction of a block budget, which were held in the Kazakh Senate.
“In his address made on September 1, 2021, the Head of State instructed the Government to develop a bill on the introduction of elements of a block budget,” the vice minister reminded. “So far, there have been developed approaches aimed at solving the main problems in the consolidation of budget programs, simplification of budget procedures, flexibility in managing budget funds, as well as the efficient use of budget funds.”
Amrin has proposed to stabilize the limits by dividing them into four blocks.
“The first block includes unconditional fixed expenses, the second - expenses for the activities of national projects, the third - expenses for the formation of reserves, and the fourth one - lump-sum expenses not related to the first three blocks,” he explained.
“Besides, it’s proposed to set spending limits with a separation of limits on basic expenses and limits on new initiatives, that is, the limits will be set on forward plans annually, on a rolling basis, and brought to the administrator of budget programs by July 1,” Amrin noted.
The expenses shouldn’t exceed the average annual growth rate in accordance with the countercyclical fiscal rule, and the upper limit for the growth is the expenses recorded over the past 10 years, given the inflation target which equaled 7.5 percent in 2021, added the vice minister.