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RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of April 8, 2022 No. 201

About approval of the Procedure for provision of target transfers from the republican budget to local budgets

For the purpose of execution of provisions of Article 55 of the Budget code of the Kyrgyz Republic concerning determination of procedure for provision of target transfers for local budgets, enhancement of management system public finances, according to articles 13, of the 17th constitutional Law of the Kyrgyz Republic "About the Cabinet of Ministers of the Kyrgyz Republic" the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Approve the Procedure for provision of target transfers from the republican budget to local budgets according to appendix.

2. To the Ministry of Finance of the Kyrgyz Republic annually, since 2022 to provide in the republican budget the financial resources necessary for implementation of financing on target transfers.

3. Recommend to local government bodies to enlist and consider in structure of the income and expenses of the local budget target transfers separately.

4. This resolution becomes effective after ten days from the date of official publication.

Chairman of the Cabinet of Ministers of the Kyrgyz Republic 

A. Zhaparov

Appendix

to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of April 8, 2022 No. 201

Procedure for provision of target transfers from the republican budget to local budgets

1. General provisions

1. This Procedure determines the sequence of actions in case of decision making about allocation of target transfers from the republican budget to local budgets, and also from one local budget to other local budget.

2. The amount and purpose of target transfers from the republican budget in local budgets affirm on annual basis regulatory legal act about the republican budget for the next fiscal year.

3. The amount and purpose of target transfers from one local budget to other local budget affirm the decision of the representative bodies of local self-government (further - local keneshes) transferring and receiving target transfers.

4. Target transfers from the republican budget are provided to local budgets on the following purposes:

1) financing of actions on the basis of the decisions made by the Cabinet of Ministers of the Kyrgyz Republic;

2) ensuring balance of local budgets;

3) financing of expenses of local budgets in case of delegation to local government bodies of separate powers of state bodies of the executive authority;

4) ensuring joint financing of payment commitments republican and local budgets;

5) development of the cities of district value.

5. The total amount of target transfers from the republican budget to local budgets affirms regulatory legal act about the republican budget for the next fiscal year.

6. Target transfers are allocated to local government bodies according to decisions of the Cabinet of Ministers of the Kyrgyz Republic, authorized state body on forecasting and budget implementation, and also representative body of local self-government.

7. Target transfers from one local budget are provided to other local budget for the solution of questions of local value. The purpose of transfer is specified in the decision of the local kenesh who made the decision on allocation of target transfer.

8. The amount of target transfers from one local budget to other local budget affirms the local keneshes reporting and receiving target transfer within the procedures of forming of the local budget.

2. Distribution of target transfers on the basis of decisions of the Cabinet of Ministers of the Kyrgyz Republic

9. The basis for decision making of the Kyrgyz Republic by the Cabinet of Ministers on allocation of target transfer to the local budget is:

1) availability of appeals of local government bodies with the reasonable reasons of need of support to local communities for the solution of questions of local value;

2) acceptance of the regulatory legal act which influenced decrease in revenues or increase in account part of the local budget which became effective in reporting year before approval of the budget for the next year;

3) availability of the regulatory legal acts directed to implementation of the state industry, regional programs of social and economic development of the territories.

10. In case of acceptance of the regulatory legal act leading to change of the income and/or expenses of local budgets in the current year target transfers are calculated and provided in the current year. The next fiscal year financing of losses of the income of the local budget is performed at the expense of means of the corresponding local budget.

11. In case of acceptance of the regulatory legal act leading to decrease profitable and/or to increase in account part of local budgets, the authorized state body on forecasting and budget implementation perfroms calculation of total amount of loss of the income of local budgets and growth of expenses of local budgets and establishes forecast indicators on target transfers for compensation of additional expenses of local budgets.

3. Distribution of target transfers for ensuring balance of local budgets

12. For the purpose of ensuring balance of local budgets with the law on the republican budget for the next year the reserve in the amount of 10 (ten) percent from the total amount of the predicted interbudget transfers is determined.

13. Requests of local government bodies for receipt of target transfers for balancing of the local budget are performed on the basis of decisions of the local kenesh and go to the plenipotentiary of the President of the Kyrgyz Republic in area.

14. The plenipotentiary of the President of the Kyrgyz Republic in area sends reasonable summary inquiry from local government bodies of the respective area to authorized state body by forecasting and budget implementation.

15. Requests of local government bodies for receipt of target transfers are reviewed by authorized state body on forecasting and budget implementation in cases if local government bodies in first-priority procedure provided in local budgets expenses under the protected Articles, the utilities and acquisition of coal calculated according to standard rates or on the basis of expenses of previous year.

16. The authorized state body on forecasting and budget implementation reviews the provided requests from local government bodies depending on opportunities of the republican budget.

4. Calculation and distribution of target transfers for local budgets in case of delegation to local government bodies of separate powers of state bodies

17. The state body of the executive authority delegating the powers to local government bodies:

1) is determined by the list of expenses by the delegated powers;

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