GOVERNMENT. Weekly Review. There must be clear link between strategic plans and budgetary programs – Prime Minister
May 7. KAZINFORM. ASTANA
Within this week the Government of Kazakhstan has considered the results of performance of the Strategic Plans by state bodies and implementation of the memorandums concluded between the Prime Minister and heads of central state bodies confirming the latter’s intentions to achieve the goals set in their Strategic Plans. Elaboration of the strategic plans and conclusion of the memorandums are a part of the administrative reform being conducted in Kazakhstan at present within the President’s Address to the Nation New Kazakhstan in New World as of February 28, 2007. In this document the Head of the State names the administrative reform as a “priority goal for joining the club of 50 most competitive states of the world”.
In general, the administrative reform includes six blocks. The first one is the reforming of the public service. Second, improving of state planning. Third, result-oriented budgeting. Fourth, improving quality of state planning. Fifth, optimization and effective management of public sector economy. Sixth, monitoring and assessment of the results of work of the state bodies and public sector of economy.
The work on all six directions is conducted deliberately and methodically. The strategic, economic and budget planning was harmonized. The activity of the state bodies was reoriented at achieving strategic goals and state tasks. Among other results of that work was the transition from short- to medium-term budget planning, transparent distribution of budget funds, and maximally effective management of funds and introduction of integrated assessment of the effectiveness of state bodies.
Making a report at the Government’s session on May 4, Minister of Economic Development and Trade Zhanar Aitzhanova said there were some shortcomings in the system of state planning.
“First of all, the indicators which must characterize the level of achievement of strategic goals do not usually reflect the current activity of the state bodies. Secondly, sometimes responsibility of central state bodies and local akimats is not differentiated in the documents. Third, the number of indicators is too high”, Z. Aitzhanova said.
According to her, introduction of amendments to the national budget also negatively impacted the effectiveness of implementation of the strategic plans.
In turn, the Prime Minister pointed out a number of shortcomings. According to him, the ministries overfill their plans with strategic tasks and indicators of their achievement. Some of them contain more than 100 indicators. Sometimes the ministries reflect the current activity, but not results they plan to achieve. There are no certain requirements to development of the content of the budgetary programs. The Premier noted the necessity to adjust further activities.
Summing up the results of the sitting the Prime Minister gave a number of tasks. The Ministry of Economic Development and Trade together with Finance Ministry were charged to prepare an updated methodological basis for development of strategic plans till May 20. Strategic plans should be focused on the key strategic directions and goals, but not cover all spheres of work of state bodies. It is necessary to tighten requirements for the formulation and selection of strategic objectives and tasks. Strategic purposes and tasks should fall within budget. Finally, strategic plans of the central executive bodies should be coordinated with the territory development programs and strategic plans of the local executive bodies.
The Ministry of Finance was instructed to analyze the formation of budget programs till June 1. The Ministry of Economic Development and Trade in association with Finance Ministry were urged to develop a system of integrated assessment of strategic plans implementation, memoranda and budget programs till October 1. The Ministry of Economic Development and Trade was charged to work out requirements to development, maintenance and evaluation of memoranda concluded between the heads of state bodies and the Prime Minister, introduce amendments to existing legal acts.
At the same sitting the Head of the Government charged to establish a commission for studying the situation on the Caspian Sea, namely on compliance of oil companies’ exploration activities with the country’s environmental legislation. He noted that oil slick disaster in Gulf of Mexico arouses many issues regarding observance of environmental standards while oil deposits development.
Besides, K. Massimov reminded of necessity of controlling the situation on food markets taking into consideration the tendency of growth of food prices. First Vice PM Umirzak Shukeyev was charged to establish a special group for studying the situation and adopting appropriate measures in case of necessity.
On the same day the Prime Minister held a regular session of the Council of Economic Consultants under the Kazakh Government. The sitting participants heard a report on Analysis and assessment of state anti-crisis measures – consequences for economic policy prepared by the Public Policy Research Center. The report provides for major factors and degree of influence of the global crisis on Kazakhstan economy and assessment of efficiency of the Government’s anti-crisis measures on maintaining the country’s economy. After discussion the experts made recommendations on adjustment of short-term and middle-term economic policy.
On Thursday, May 6, K. Massimov met with Minister of Foreign Affairs of Georgia Grigol Vashadze. The parties focused on the prospects of bilateral trade-economic relations development, in particular, the issues of the Kazakh investments participation in various spheres of the Georgian economy and expansion of cooperation in the field of transport, energy and infrastructure development.
The Consultative Council on Customs Union’s activity held its first session in the Ministry of Economic Development and Trade on Thursday. Representatives of the country’s business community took part in it. Vice Minister Timur Suleimenov said that regulatory-legal base of the Customs Union is being discussed in Moscow and Minsk by the countries’ delegations now. According to him, successful functioning of the Customs Union depends on activeness of businessmen themselves, realization of their projects.