Abstract
Reforming the state budget system in the ongoing COVID-19 pandemic poses more challenges to researchers and authorities in Kazakhstan than in previous periods. The economic crisis caused by morbidity and quarantine restrictions around the world creates restrictions on economic activity and the movement of goods. The consequence for each of the countries is limited financial resources with significant additional budgetary costs associated with overcoming morbidity and mitigating the social and economic impact of the pandemic. The purpose of the study is to identify the features of the functioning of intergovernmental fiscal relations in the Republic of Kazakhstan in the context of the COVID-19 pandemic and the ongoing reform of the budget system. The investigation uses a deductive method to identify problematic links in the budget system, an inductive method to generalise arrays of empirical data and the results of the primary analysis made by other authors, as well as a statistical method for analysing time series of budget indicators and a graphical method. The study revealed such issues of intergovernmental fiscal relations as rigid budget centralisation, lack of sufficient resource base for the formation of local budget revenues, lack of authority of local authorities to find and develop sources of budget replenishment. The shock absorber of budget imbalances – The National Fund is becoming increasingly dependent on the unstable conjuncture of external commodity markets and financial resource constraints will be stronger going forward. The programme-based budgeting approach, which has been introduced in practice, encounters weak linkages between strategic programme objectives and local needs and opportunities. Lax accounting and control over the use of funds allocated to programmes call into question the effectiveness of their implementation.