State Regulation of Regional Entrepreneurship in the Market Economy: A Case of Kazakhstan

There is a budget leveling mechanism involving the redistribution of income between regions, between the national and regional budgets in order to align budgetary security of regions of Kazakhstan. One way to allocation and distribution of budgetary funds are public procurement carried out through the state order. Analysis of international experience in the procurement of goods, works and services for state needs allows us to offer a number of enhancements for use in Kazakhstan’s public procurement mechanisms. It is necessary to organize the procurement process to provide each regional office the ability to respond to their needs promptly and effectively, at the same time respecting the mandatory legal requirements. However, delegation of authority from central organs of the Republic of Kazakhstan to subordinates may result in the risk of reducing the effectiveness of budget spending. Accordingly, it is necessary to establish effective interaction mechanisms between parent organizations and local governments in the implementation of such approach.