Article 140. Debt of local executive bodies and borrowing by local executive bodies Budget Code of the Republic of Kazakhstan

Home / Codes / Article 140. Debt of local executive bodies and borrowing by local executive bodies Budget Code of the Republic of Kazakhstan

1. Debt of the local executive body is the amount of loans received and outstanding by the local executive body on a specific date.

2. Borrowing by local executive bodies of regions, cities of republican significance, and the capital shall be carried out in the form of:

1) receiving budget loans from the republican budget;

2) obtaining budget loans from a higher budget to cover the projected cash deficit in the cash control account during the financial year;

3) the issue by local executive bodies of regions, cities of republican significance, and the capital of government securities for circulation on the domestic market to finance expenses in accordance with the list of borrowing purposes by local executive bodies of regions, cities of republican significance, and the capital.

The list of purposes of borrowing by local executive bodies of regions, cities of republican significance, and the capital shall be determined by the central authorized body for budget policy in the area of state and state-guaranteed debt in agreement with the central authorized body for budget execution and is approved by the Government of the Republic of Kazakhstan;

4) the issue by local executive bodies of cities of republican significance and the capital of government securities for circulation on the domestic market to finance the budget deficit;

5) the issue by the local executive body of a city of republican significance with a special status determined by a legislative act of the Republic of Kazakhstan of government securities in national currency for circulation on the territory of the Astana International Financial Center, as well as borrowing from international financial organizations in national currency to finance projects classified as "green" in accordance with the environmental legislation of the Republic of Kazakhstan.

Borrowing by local executive bodies of districts (cities of regional significance) shall be carried out in the form of receiving loans from the local executive body of the region to finance the deficit of the district (city of regional significance) budget.

Borrowing by the offices of akims of cities of regional significance, villages, settlements, and rural districts shall be carried out in the form of receiving loans from the local executive body of the district (city of regional significance) to finance the deficit of the corresponding local budget.

3. Borrowing by the local executive body of a region, city of republican significance, or the capital shall be limited by the established debt limit of the relevant local executive body and the volume of local budget funds allocated to repay and service the debt of the relevant local executive body.

The debt limit of a local executive body is a fixed amount of loans received and outstanding by the local executive body for the relevant financial year, which shall not be exceeded by the actual debt of the local executive body on a given date (at the end of the relevant financial year).

The debt limits of local executive bodies for the relevant financial year are approved by the law on the republican budget.

Liability for failure to comply with the debt limit of a local executive body for the relevant financial year is established by Article 41 of this Code.

4. The number of expenses for repayment and servicing of the debt of the local executive body shall not exceed an amount equal to ten percent of the local budget revenues, excluding targeted transfers from a higher budget for the relevant financial year.

The repayment and servicing of the debt of local executive bodies shall be carried out by them at the expense of funds provided by local budgets, in the manner determined by the central authorized body for budget execution.

5. The issue of securities for circulation on the domestic market by the local executive body of the region, city of republican significance, or capital shall be carried out in the manner determined by the authorized body for budget execution.

The conditions, volume and intended purpose of the issue of government securities for circulation on the domestic market by the local executive body of the region, city of republican significance, or capital shall be determined by the central authorized body for budget execution.

6. The issue of government securities in national currency for circulation on the territory of the Astana International Financial Center and borrowing from international financial organizations by the local executive body of a city of republican significance with a special status determined by a legislative act of the Republic of Kazakhstan for the financing of projects classified as "green" according to the environmental legislation of the Republic of Kazakhstan shall be carried out in the manner determined by the Government of the Republic of Kazakhstan.

The conditions, volume and purpose of external government loans of the local executive body of a city of republican significance with a special status determined by a legislative act of the Republic of Kazakhstan from international financial organizations for financing projects classified as "green" according to the environmental legislation of the Republic of Kazakhstan shall be determined in agreement with the central authorized body for budget execution.

Borrowing by a local executive body of a city of republican significance with a special status determined by a legislative act of the Republic of Kazakhstan shall be carried out by concluding a loan agreement with an international financial organization to finance projects classified as "green" according to the environmental legislation of the Republic of Kazakhstan, within the established debt limit of the relevant local executive body.

7. Repayment of the debt of the local executive body of the region, city of republican significance, capital on issued government securities shall be carried out without fail within the period established by the obligations.

Repayment of the debt of the local executive body of a city of republican significance with a special status, determined by a legislative act of the Republic of Kazakhstan, under loan agreements, shall be carried out without fail within the period established by the loan agreements.

Code of the Republic of Kazakhstan dated March 15, 2025 № 171-VIII.

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