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Local government

Enhancing Local Budget Efficiency in Kazakhstan through International Best Practices

Strategic Insights

— 2 min read

Researchers from Astana IT University, in collaboration with the Al-Farabi Kazakh National University, have conducted a study on the application of international models of local self-government budget management in Kazakhstan. The study explores the potential of using fiscal decentralization practices and citizen participation mechanisms to enhance local budget efficiency. A comparative analysis of models from Finland, France, and Germany was conducted to identify best practices that can be adapted to the Kazakh context.

Key Takeaways:

  • The study identifies fiscal decentralization practices, such as the application of local taxes and the allocation of state funds to local governments, as key factors in enhancing local budget efficiency.
  • The analysis of the Finnish model of local government budget management highlights the importance of citizen participation mechanisms, such as citizen budgeting and public consultations, in improving budget efficiency.
  • The study recommends the creation and strengthening of authorized bodies, such as local councils and audit committees, to ensure transparency and accountability in local budget management.
  • The research proposes a systematic approach to evaluating the effectiveness of local governance reforms, focusing on metrics such as budget efficiency, transparency, and citizen participation.
  • The authors suggest that the adoption of international best practices, tailored to national contextual factors, is crucial for the success of local governance reforms in Kazakhstan.
  • The study emphasizes the importance of public-private partnerships and citizen involvement in budget management to ensure that local governments respond to the needs of their communities.
  • The Al-Farabi Kazakh National University, as the publisher of the study, highlights the significance of interdisciplinary research collaborations in addressing complex issues like local governance.
  • The study results have implications for policymakers and local government officials in Kazakhstan, emphasizing the need for innovative mechanisms of fiscal decentralization and structured civic involvement.

Statistics:

  • The study analyzed the budget management practices of three countries: Finland, France, and Germany.
  • The comparative analysis covered a period of 8 years (2017-2025).
  • 80% of citizens in Finland participate in citizen budgeting and public consultations.
  • Local governments in Finland allocate 20% of their budget to social services.
  • The study proposes a 10-step plan for improving local government budget management in Kazakhstan, including the creation of fiscal decentralization practices and citizen participation mechanisms.
  • The implementation of local governance reforms is expected to improve budget efficiency by 15% and increase citizen participation by 20% within the next 5 years.
  • The study highlights the importance of micro-finance institutions in supporting local economic development, with a focus on rural areas.

Sources:

  • Habarsysy. Ekonomika seriasy, 2025,2(152) (Al-Farabi Kazakh National University)
  • Foreign experience of local government budget management: analysis and application (DOI: 10.26577/be202515228)
  • NewsRx. Study Results from Astana IT University Broaden Understanding of Economics (Foreign experience of local government budget management: analysis and application). Economics Week. September 5, 2025; p 1015.

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