TABLE of CONTENTS section i. General provisions



SECTION II. Inter-budgetary relations and forms management



SECTION III. Drafting, consideration and adoption of the budget



SECTION IV. Budget execution



Section v. accounting and financial reporting. Fiscal accounting and reporting on budget execution



Section VI. LOW INVESTMENT



Section VII. Grants. Subsidies



SECTION VIII. PUBLIC DEBT MANAGEMENT OF TURKMENISTAN



SECTION IX. Budget monitoring and evaluation



SECTION x. State financial control



 



                    



                     



Budget code of Turkmenistan



 



Budget code of Turkmenistan establishes general principles for the Organization and functioning of the budgetary system of Turkmenistan defines the framework of the budget process and fiscal relations in Turkmenistan.



 



                                                               Section i. General provisions



 



Chapter 1. The main provisions of



 



Article 1. The basic concepts used in this code



1. In this code uses the following concepts:



1) b



ûdžet is a form of education and spending money intended for financial security objectives and functions of the State;

2) budget operations-operations of deposit of income, financing costs and other operations carried out during the execution of the budget;



3) spending budget-money budget, devoted to financial security objectives and functions of the organs of State power and administration, including local authorities;



4) budgetary institution-an institution created by the State authorities of Turkmenistan, including bodies of local authorities, for the implementation of managerial, socio-cultural, scientific, technical or other non-commercial functions, which are funded from the appropriate budget based on individual plans of financing under obligations and payments;



5) revenue budget-money funds to gratuitous and irrevocable basis, in accordance with the legislation of Turkmenistan at the disposal of the bodies of State authority and administration, including local authorities, leading to an increase in the net asset value of the State;



6) budgetary process is governed by the budgetary legislation of Turkmenistan the activities of bodies of State authority and administration, including local authorities, as well as other participants of the budgeting process for the compilation and consideration of draft budgets at all levels of the budgetary system, approval, execution and State financial control;



7) fiscal investment project is a set of activities implemented within the prescribed period of time, with complete nature and aimed at the creation of new construction or reconstruction of existing objects, acquisition of equipment, machines and mechanisms that are not included in the estimated cost of the object, as well as the establishment, implementation and development of information systems;



8) budget investments-financing, aimed at increasing the value of State assets, the renewal of natural resources with a view to obtaining economic benefits or socio-economic effects;



9 budget programme administrator)-State body (institution) responsible for planning, justification, implementation and achievement of budget programs;



10) budgetary resources-financial and other assets of the State, enrolling in State ownership and the expenditure which is reflected in the budget in the form of cash;



11) budget holders are budgetary institutions, as well as other legal and physical persons receiving budget funds through the budget programme administrator and use them on the implementation of the budget of the programmes;  



12) cash servicing of budget-holding and accounting operations on cash receipts of funds in budget expenditure and income budget;



13) assets of the State-a set of capital constituting the property of the State;



14) public authority-in the State (Central) level, Ministry or agency of Turkmenistan, implementing in accordance with the legislation of Turkmenistan, the coordination of the implementation of the State policy in the relevant sectors of the economy at the local level, departments and units under the authority of the local executive authorities;



15) norm-norm income distribution income distribution between the budgets of different levels in percentage;



16) reported fiscal-year preceding the current fiscal year;



17)-a set of result indicators and outcome direct budget programs, characterizing activity Admin budget programmes for the implementation of the medium-term plan and programme budget;



18) next financial year-the year following the current financial year;  



19) fiscal year is the period of time beginning on January 1 and ending on December 31 of the calendar year;




20) investment proposal is the concept of fiscal investment project, reflecting the purpose of the project and identifies the ways of its achievements, including the set of related activities, developed by administrators of budgetary programmes;



21) planning period-three fiscal years that follow the current fiscal year;



22) neproizvedënnye assets are natural assets and products of social order. Natural assets include land, mineral deposits in the bowels of the Earth, the fish resources in open territorial waters, as well as the electromagnetic spectrum in cases where ownership of it enforceable. Public products devices include patents and leases;



23) revised budget-budget taking into account changes in the approved budget, made in accordance with this code, based on the laws of Turkmenistan, acts of the President of Turkmenistan, decisions of the Cabinet of Ministers of Turkmenistan, local authorities;



24) approved budget-budget to the relevant planning period, approved by the Majlis of Turkmenistan or the representative body of local authorities;



25) transfers-subsidies, grants, social benefits and other expenditures carried out in cash and in kind: a) subsidies are current unrequited payments for legal entities at the expense of the budget to the impact on production levels, as well as for damages arising in connection with government regulation of prices and tariffs;



b) grants-optional current and capital transfers received by the budgetary institution from the relevant public authority, foreign Governments, international organizations, as well as intergovernmental transfers, passed from one level to another level budget budget budget system of Turkmenistan on a non-reimbursable basis;



ç) voluntary transfers other than grants-current and capital transfers received in the form of donations and donations from individuals and non-State legal entities, except for international organizations;



d) social benefits-State aid with a view to social protection for certain categories of citizens;



(e) other expenses paid-) at the expense of the budget pension contributions for certain categories of citizens in certain periods in accordance with the Turkmenistan law "on State pensions", personal pensions, social assistance benefits to certain categories of citizens outside the State pension insurance programmes;



26) budgetary system of Turkmenistan is the sum of the budgets of all levels, based on economic relations and Government of Turkmenistan.  



2. This code other concepts used in the values of certain civil and other laws of Turkmenistan, as well as the relevant articles of this code.



 



Article 2. The budget legislation of Turkmenistan



1. Budget legislation of Turkmenistan is based on the Constitution and consists of the present code and other normative legal acts of Turkmenistan budgetary relationships.

2. Normative-legal acts of State authorities and administration, including local authorities, governing fiscal relationship may not contradict the budget code of Turkmenistan, in case of contradiction the rules set by the Budgetary Code of Turkmenistan.



3. If an international treaty to which Turkmenistan stipulates other rules than those stipulated by the present Code, the rules of the international treaty shall apply.



 



Article 3. Legal relations governed by budget code of Turkmenistan



1. Budget code of Turkmenistan regulates legal relations arising between the subjects of legal relations in the budget process:

a) income generation and expenditure budgets of the budget system of Turkmenistan, implementing State and local borrowing, servicing the public debt;



(b) drafting and review draft) budgets of the budget system of Turkmenistan, adoption and execution of the budgets of the budget system of Turkmenistan, to monitor their implementation.



2. Budget code of Turkmenistan establishes the legal status of members of the budgetary process, procedure and conditions for prosecution for violation of budgetary legislation of Turkmenistan.



 



Article 4. The scope of the budget legislation of Turkmenistan



1. This code applies to budget relationships arising in the territory of Turkmenistan.

2. acts of representative bodies of local power, governing fiscal relations act within the territory of the respective administrative-territorial units.



 



Chapter 2. The budget system of Turkmenistan



 



Article 5. Principles of the budgetary system of Turkmenistan



The budget system of Turkmenistan is based on the following principles:




1) principle of unity-unity of the budget system of Turkmenistan is provided by a single legal base, a single monetary system, a single order of regulation of budgetary relations, the single budget classification, the uniform procedures for implementation of the budget process, a single order of performance, keeping of accounting records, preparation and submission of reports, use of common measures of responsibility for violation of budgetary legislation of Turkmenistan;

2) completeness principle reflect income and expenditure budgets reflect all revenue and expenses in the relevant budgets mandatory and in full.



Tax deferment and installments on taxes and other obligatory payments fully takes into account the revenue budgets, except for delays and installments on taxes and other obligatory payments offered within the current fiscal year;



3) principle of specificity-income and expense budgets are reflected in them in accordance with the structure of the budget classification of Turkmenistan;



4) transparency-publication of normative legal acts in the field of budgetary legislation of Turkmenistan, as well as information concerning fiscal policy, with the exception of information that constitutes a State or other secrets protected by the legislation of Turkmenistan;



5) principle of effectiveness-preparation and execution of the budgets on the basis of the need for results envisioned targets strategic plans of State bodies;



6) principle of effectiveness-preparation and execution of the budgets on the basis of the need to ensure the best result directly from using a limited amount of budgetary funds;



7) the principle of autonomy of budgets:



a) right and obligation of State authorities and administration, including local authorities, and local authorities at the relevant level of the budgetary system of Turkmenistan to the budgetary process, with the exception of cases provided by the present Code, independently determine the shape and direction of spending budgets, except for expenses, financial security which is carried out at the expense of funds from other budgets;



b) codification of the relevant budgets and revenue authority in their formation;



8) principle of balance-the balance of the amount of the expenses with revenues;



9) the principle of responsibility-taking the necessary administrative and managerial decisions aimed at achieving outputs and ensuring accountability of budget programme administrators and managers of public institutions and businesses, receive the budgetary resources for decisions not conforming to the legislation of Turkmenistan;



10) the principle of targeting and targeting budget-budget budget programme administrators in achieving the outcomes envisaged by the strategic plans of the State bodies and their use in accordance with the legislation of Turkmenistan.



 



Article 6. The structure of the budget system of Turkmenistan



To the budgets of the budget system of Turkmenistan are: 1) the State budget of Turkmenistan and central budget;



2) local budgets, which include:

and velayat) budget of Ashgabat city, etrap towns, etrap rights;



(b) budget in etrap);



ç) in city budget etrap, settlement, gengešlika.



 



Article 7. Legal form of budgets



The State budget of Turkmenistan claimed in the form of a law of Turkmenistan, local budgets approved in the form of decisions of representative bodies of local authorities.

 



Article 8. The State budget of Turkmenistan



1. The State budget of Turkmenistan is the financial plan of the State for the planning period that determines the amounts of income and expenditures, ensuring the activity of bodies of State authority and administration, local authorities and local self-government, finansirovanieinvesticionnoj and innovation.

2. the State budget of Turkmenistan includes centralized and local budgets (excluding fiscal grants between them).



3. the income of the State budget of Turkmenistan are distributed between Centralised budget and the budgets of the regions and cities of Ashgabat in accordance with the Turkmenistan law "on the State budget of Turkmenistan for the plan period.



 



Article 9. Central budget



1. Centralized budget of Turkmenistan-form education and spending money intended to support public policy objectives and functions of the organs of State power and administration.

2. income of the Centralized budget formed due to tax and other revenues, certain legislation of Turkmenistan.



 



 



Article 10. Stabilization Fund of Turkmenistan




1. Stabilization Fund of Turkmenistan aims to ensure a stable socio-economic development of the State, reducing the dependence of the economy on the hydrocarbon sector, the impact of adverse external factors and ensure the rights of future generations to a national natural treasure.

2. Stabilization Fund of Turkmenistan includes financial assets and other property (hereinafter referred to as the financial assets).



 



Article 11. Local budgets



1. Local budget form of education and spending money intended for financial security objectives and functions of local authorities.



2. Budget revenue velayat, etrap Ashgabat city budget, city, etrap etrap rights in formed due to tax and other revenues, certain legislation of Turkmenistan.



Budget revenues are shared between the velaâtskim province budget and budgets of city, etrap etrap rights in accordance with the decision of representative authority of velayat on the budget for the plan period of the velayat.



Budget revenues are distributed between the city of Ashgabat city of Ashgabat city budget and the budgets of the districts in the city in accordance with the decision of the representative body of the city of Ashgabat Ashgabat city budget for the plan period.



Revenue budget etrap (towns with etrap rights) are distributed among the ètrapskim budget (municipal budget of the town with the rights of etrap) and the budgets of cities in etrap (district), towns and gengeshliks in accordance with the decision of representative authority etrap (towns with etrap rights) on budget etrap (towns with etrap rights) for the planning period.



3. income of city budget in etrap, settlement, gengešlika are formed at the expense of revenue, certain legislation of Turkmenistan, for execution of expense Gengeša obligations in accordance with the assigned tasks and functions. City budget in etrap, settlement, gengešlika stated in the corresponding budget etrap composition. The use of the local Council of other forms of education and spending money for the execution of expenditure commitments are not allowed.



 



Article 12. State trust funds



1. In the State budget of Turkmenistan State trust funds may be created by acts of the President of Turkmenistan.

2. Under State trust funds refers to money from public funds and earmarked special funds (hereinafter referred to as the public trust funds), which are formed at the expense of the destination or target income deductions from certain types of income, other income.



3. public trust funds intended for the implementation of constitutional rights of citizens to pensions, social security in the event of unemployment, health and medical care, and for other purposes in accordance with the decision of the President of Turkmenistan.



 



Article 13. Extraordinary State budget



1. In the case of the territory of Turkmenistan, the State of emergency is formed by Extraordinary State budget in accordance with article 56 of this code.

2. at the time of State budget action, Turkmenistan law "on the State budget of Turkmenistan and the decisions of the relevant representative bodies of the local authorities of the local budget for the plan period will be suspended.



3. the emergency State budget is valid for the period for which introduced the State of emergency.



4. With the termination of the State budget is made by refining the State budget of Turkmenistan and local budgets in accordance with this code.



 



Chapter 3. Budget structure



 



Article 14. The structure of the State budget of Turkmenistan



The structure of the State budget of Turkmenistan consists of the following sections:



1) basic income:

a) taxes;



b) grants;



ç) revenues of State trust funds;



d) other main income.



2) Main expenses:



a) compensation of employees;



(b)) the use of goods and services;



ç) consumption of fixed capital;



(d)) interest;



(e));



ä) grants;



(f)) expenditure of public trust funds;



g) social benefits;



h) other major expenses.



3) operating balance.



4) transactions in nonfinancial assets:



Net acquisition of non-financial assets:



4.1) for sale of non-financial assets:



a) fixed assets;



b) Revolving Fund stocks;



ç) values;



d) neproizvedënnye assets;



4.2) buying non-financial assets:



a) fixed assets;



b) Revolving Fund stocks;



ç) values;




d) neproizvedënnye assets.



5) net lending/borrowing (surplus/deficit).



6) transactions in financial assets and liabilities (financing):



6.1) net acquisition of financial assets:



a) internal;



b) external.



6.2) net incurrence of liabilities:



a) internal;



b) external.



 



Article 15. Basic income budgets



1. Basic income budgets are formed in accordance with budgetary, tax and other laws of Turkmenistan.



2. basic income budgets can be partially centralized revenues credited to other budgets of the budget system of Turkmenistan for financing activities of national or regional importance.

3. In the composition of the basic income separately accounted for revenues of State trust funds. These revenues are earmarked.



4. other main income-all profitable operations not classified as taxes or grants:



1) property income after paying taxes and duties stipulated by tax legislation of Turkmenistan;



2) income from paid services provided to budgetary institutions, after payment of taxes and duties stipulated by tax legislation of Turkmenistan;



3) funds received in accordance with the legislation of Turkmenistan, as a result of the application of measures of civil, administrative and criminal penalties, including fines, compensation and confiscation;



4) funds received in compensation for damage caused to Turkmenistan and other compulsory exemptions;



5) transfers are not grants, including the receipt of transfers from stabilization fund in the central budget and voluntary transfers;



6) other income, including State fees.



 



Article 16. Property income



Income from property included:



1) funds received in the form of rent or other fees for temporary use of property of State-owned property;

2) funds received in the form of interest on balances of funds in accounts in credit institutions;



3) funds received from the transfer of property of State-owned asset management;



4) income in the form of profit per share in the Charter capital of commercial and public companies, or dividends on shares belonging to Turkmenistan;



5) part of the profits of State-owned enterprises, remaining after payment of taxes and other obligatory payments, in an amount to be determined by the Cabinet of Ministers of Turkmenistan;



6) other income from the use of State property, stipulated by the legislation of Turkmenistan.



 



Article 17. A major expense budgets



1. Basic expenses budgets are implemented on the basis of the disposable type, specified in paragraph 2 of article 14 of this code.



At the same time:



1) labour costs constitute payments made to employees in cash for their work;

2) the use of goods and services represents the full cost of the goods and services required for the implementation of the public function, power and provision of public services arising from them;



3) consumption of fixed capital represents a decrease in the value of stocks of fixed assets during the accounting period as a result of physical deterioration, natural aging and accidental damage;



4) percentages represent the charges associated with the use of deposits, securities other than shares, loans;



5) costs in the form of grants in cash;



6) expenses in the form of grants in cash or in kind;



7) costs of State trust funds are earmarked expenditures of these funds;



8) social (public) benefits constitute payments made in cash for separate categories of citizens for the purpose of social protection;



9) other major expenses include:



a) all expendable operations not referred to other categories of expenses associated with the property, other than interest;



b) fines and penalties imposed by some Governments on the other;



ç) current and capital transfers credited to other expenses;



(d)) insurance premiums and claims relating to life insurance;



e) costs associated with the Organization and the provision of budgetary institutions paid services in accordance with article 79 of the present code.



2. State aid, subsidies are granted in cases stipulated by the legislation of Turkmenistan.



 



Article 18. Operating balance




1. Operating balance is defined as the difference between the basic income and the basic expenditure budget.



2. Negative operating surplus is the excess of expenditure over income main core budget.

3. Positive operating balance is the sum of the basic income exceeded expenditure on basic budget.



 



Article 19. Net acquisition of non-financial assets



1. Net acquisition of non-financial assets is defined as the difference between the buying and selling of non-financial assets.



2. To non-financial assets are fixed assets, working capital, inventory values and neproizvedënnye assets, which are classified in accordance with the legislation of Turkmenistan.

 



Article 20. Net lending/borrowing (surplus/deficit)



1. Net lending/borrowing is equal to operating surplus after deducting the net acquisition of non-financial assets, which is also a net result of transactions in financial assets and liabilities (finance).

The obtained value with positive sign is a surplus budget, with a minus sign-budget deficit.



2. Sources of funding the budget deficit are as follows:



1) funds from the public-both internal and external borrowings;



2) return of budgetary funds from deposits, proceeds from sales of securities;



3) unencumbered balances of budget under the conditions defined by this code;



4) transfers from the stabilization fund.



3. the deficit of the State budget of Turkmenistan may be permitted only in a centralized budget.



 



Article 21. Transactions in financial assets and liabilities (finance)



1. Transactions in financial assets and liabilities are classified according to the types of financial instruments involved in the operation, and the residence of the holder of the asset or liability.

Financial instruments include currency and deposits, securities (except for shares), credits and loans, shares and other equity, financial derivatives, other receivables (Payables).



2. the net acquisition of financial assets is the difference between the purchase and sale of financial assets.  



Acquisitions financial assets are all operations that lead to an increase in financial assets.



Vybytiâmi financial assets are all operations that lead to a decrease in financial assets.



3. Net incurrence of liabilities is the difference between acceptance and repayment obligations.



Commitments are all operations leading to increase obligation.



Liabilities include all operations leading to reduction commitments.



4. Acquisitions and disposals of financial assets, acceptance and repayment obligations are carried out in accordance with the legislation of Turkmenistan.



 



Chapter 4. Government Reserves Of Turkmenistan



                and local authorities



                and their use



 



Article 22. Reserves of the Government of Turkmenistan and

                    the local authorities



1. Government reserves of Turkmenistan and local authorities consist of Central and local budgets, respectively, to finance expenditure not provided for in these budgets because of their unpredictability and require funding in the current fiscal year.

2. reserve the Government of Turkmenistan provides for centralized budget and includes:



1) reserve (Foundation) of emergency situations;



2) reserve for urgent expenses;



3) reserve for fulfilling obligations under decisions of the Court;



4) allowance for covering cash gaps of central budget, budgets of regions, cities of Ashgabat.



3. reserve of the executive authorities of the city of Ashgabat and velayats foreseen in the respective local budgets and includes:



1) reserve for urgent expenses;



2) reserve for fulfilling obligations under decisions of the Court;



3) allowance for covering cash gaps district budgets, towns with etrap rights, district in the city.



4. The total amount of reserve Government of Turkmenistan establishes the Turkmenistan law "on the State budget of Turkmenistan for the plan period.




The total amount of reserve body of local executive bodies shall be established by a decision of the representative body of local authorities on the relevant budget and should not exceed two per cent of the volume of local budget revenues excluding transfers and loans.



5. The allocation of funds from the Government of Turkmenistan and local authorities is carried out within the limits of the amounts approved in the centralized budget or local budgets for the current fiscal year, on the basis of decisions of the President of Turkmenistan or by the local authorities that lapse after the end of the financial year.



6. In case of insufficiency of funds on one type of reserves, the Government of Turkmenistan or the authority of local executive authority in the prescribed manner increases scheduled appointments of this type of reserve, through the reallocation of funds between types of reserves the Government of Turkmenistan or the authority of local executive authority.



7. The allocation of funds from the Government of Turkmenistan and local authorities for emergency expenses and the fulfillment of obligations on the Court after 20 December of the current fiscal year is not allowed.



 



Article 23.  The use of reserves the Government of Turkmenistan and local authorities



1. emergency Reserve is used to dealing with emergencies of natural and man-made disasters.

Emergency reserve may be used to provide humanitarian assistance to Turkmenistan in other States in the form of a grant.



2. reserve for urgent expenses used for financing activities not covered by the relevant budget for the current fiscal year.



Reserve for urgent costs provided in the local budget, where necessary, can be used to eliminate the consequences of natural and human-caused emergencies.



3. Allowance for the performance of the obligations of the court decisions is used for performance of the obligations of the Government of Turkmenistan, the central bodies of State power and administration and their local authorities financed by the budget, as well as local authorities.



4. Borrowing from the reserve to cover the cash gap can be local bodies of executive power within the fiscal year and does not require updating (revision) of Central or local budgets.



The terms of borrowing to cover the cash gap and the application form are set by the Ministry of Finance of Turkmenistan.



5. If necessary, increase the amount of reserve Government of Turkmenistan Turkmenistan law "on the State budget of Turkmenistan for the plan period is amended in the manner prescribed by section 82 of this code.



6. If necessary, increase the amount of reserve body of local authorities, the Ministry of Finance of Turkmenistan for the treatment of this body is considering allocating additional funds to the local budget from a centralized budget.



7. Unused funds from the reserve of the Government of Turkmenistan or local executive body, be returned to the appropriate budget prior to 31 December of the current fiscal year.



 



Chapter 5. Stabilization Fund of Turkmenistan



 



Article 24. Functions of the Stabilization Fund of Turkmenistan



1. Stabilization Fund of Turkmenistan carries out savings and stabilization functions.

Part of the funds of the Stabilization Fund of Turkmenistan, which performs a function that is a Fund for future generations and is formed by the accumulation of financial assets of the Fund and to ensure their long-term profitability.

Stabilization Fund function is designed to maintain the level of liquidity of its assets. Part of the funds of the Stabilization Fund of Turkmenistan used to implement stabilization function, is a transfer from the Stabilization Fund of Turkmenistan in the central budget.



2. formation and use of the Stabilization Fund of Turkmenistan are carried out in order to ensure macroeconomic and fiscal stability, taking into account the financial and economic situation and the priorities of socio-economic development of Turkmenistan.



3. Income Stabilization Fund of Turkmenistan and their expenditure can be carried out both in national and in foreign currency.



Accounting, preparation and presentation of financial statements on operations of the Stabilization Fund of Turkmenistan are carried out in accordance with the legislation of Turkmenistan.




4. management of the Stabilization Fund of Turkmenistan is carried out by the Ministry of Finance of Turkmenistan in accordance with article 27 of this code.



 



Article 25. The formation of funds stabilization fund of Turkmenistan



Means of the Stabilization Fund of Turkmenistan are formed due to:



1) part of central budget surplus under part 5 of article 81;

2) investment income from funds management stabilization fund of Turkmenistan;



3) other income not forbidden the legislation of Turkmenistan.



 



Article 26. How to use funds stabilization fund of Turkmenistan



1. funds stabilization fund can be used:



1) stabilization fund part:

(a)) in the form of a transfer from the Stabilization Fund of Turkmenistan in the Central budget for the realization of budgetary programs (sub-programs) development for the first financial year of the planning period;



(b)) in the form of targeted transfers sent from the Stabilization Fund of Turkmenistan to the centralized budget of Turkmenistan by the President defined;



ç) on the financing of the costs of the management of stabilization fund of Turkmenistan;



(d)) for other purposes, in accordance with the decision of the President of Turkmenistan;



2) means saving part of the Fund:



in agreement with the President of Turkmenistan on lodging in high yield long-term financial instruments in order to produce investment income over the long term.



2. The amount of the transfer from the Stabilization Fund of Turkmenistan for the first financial year of the planning period is determined by the Ministry of finance and should not exceed one third of the stabilization part of its assets at the end of the reporting fiscal year.



3. The Cabinet of Ministers of Turkmenistan shall have the right, on the proposal of the Ministry of Finance of Turkmenistan to allow use in the current fiscal year to finance budget programmes, endorsed by the Centralized budget for the fiscal year, the amount of the transfer from the Stabilization Fund of Turkmenistan in the central budget, not listed in the reported fiscal year, but not exceeding the outstanding registered obligations under the relevant budgetary programmes taking into account the amount of budget surpluses at the beginning of the current fiscal year.



4. the proportion of the assets of the Stabilization Fund of Turkmenistan relating to the Fund for future generations, is determined by the President of Turkmenistan.



The Fund for future generations, is not subject to the requirements of short-term liquidity.



The Fund of future generations can be placed in high-yield long-term financial instruments with a minimum level of risk.



 



Article 27. Management stabilization fund of Turkmenistan



1. the Office of the Stabilization Fund of Turkmenistan is carried out by the Ministry of Finance of Turkmenistan.



2. operations with funds stabilization fund of Turkmenistan are reflected in the special account of the Ministry of Finance of Turkmenistan opened at the Central Bank of Turkmenistan.

3. in order to increase revenue stabilization fund of Turkmenistan, Ministry of Finance of Turkmenistan Turkmenistan stabilization fund invests in financial instruments, cash deposits and other types of investments in national and foreign currency, subject to the following limitations imposed by the Cabinet of Ministers of Turkmenistan:



1) limits on the risks of high-yielding securities and other financial instruments;



2) limits on the duration of the investment;



3) regional investment limits;



4) limit on the percentage of the capital stabilization fund of Turkmenistan, invested in one company;



5) other limits to ensure efficiency and return on investment.



4. the internal audit of the annual financial statements of the Stabilization Fund of Turkmenistan is carried out by the Ministry of Finance of Turkmenistan in accordance with the established procedure.



5. report on internal audit of the Ministry of Finance of Turkmenistan is submitted to the Cabinet of Ministers of Turkmenistan.



 



Chapter 6. Budget classification of Turkmenistan



 



Article 28. The concept of budget classification of Turkmenistan




Budget classification of Turkmenistan-grouping of basic income, core costs, financial and non-financial assets, as well as the chart of accounts of the budgetary system of Turkmenistan on uniform grounds.

 



Article 29. The aims and objectives of the budget classification of Turkmenistan



1. Budget classification of Turkmenistan is used for the preparation and execution of budgets, budget reporting and comparability of indicators of budgets of all levels.

2. Budget classification and chart of accounts correspond to the Turkmenistan objectives medium-term budget planning, programme-and performance-based budgeting, and supporting the operations of single treasury account, as well as national standards of accounting and financial reporting.



3. Budget classification of Turkmenistan is uniform and mandatory for the budgetary system of Turkmenistan.



4. Budget classification of Turkmenistan are developed and approved by the Ministry of Finance of Turkmenistan.



 



Chapter 7. Budget of the programme



 



Article 30. Budget program



1. Budget programme-cost Centralized direction and (or) local budgets on achieving measurable results of budget programme administrator activities in accordance with its purposes and objectives.

Costs of implementing budget programs envisaged in the relevant budget.



2. budgetary programs are developed based on the strategic directions, objectives and tasks of budget programme administrators and are grouped into homogeneous State functions, powers and public services or activities budget programme administrator.



3. the budget plan envisages direct indicators and the final results of its implementation.



Performance indicators budget programmes aimed at achieving the goals and objectives of the medium-term budget plan of specific public authority must comply with the medium-term plan, results indicators of State authority.



4. Direct result should determine quantitatively volume performed State functions and public services within budget constraints imposed, the achievement of which depends entirely on the activities of the budget-funded agency which carries out these functions and providing data services.



5. The end result must reflect the status (status change) the level and quality of life of the population, ensure public safety, the level of development of social sphere and other areas of public administration and economic sectors resulting from the achievement of direct results of activity of a particular public authority or the budget-funded agency.



6. Budget programme can be divided into a subroutine, specifying the direction of spending of budgetary funds, provided that the budget subprogrammes apply the same result indicators as for budget programs.



7. the procedure for development of budget programs (sub-programs) and the requirements for their contents are determined by the Ministry of Finance of Turkmenistan.



 



Article 31. Types of budget programs



1. Depending on the level of public administration entails the following kinds of budget programs:



1) public budgetary programs approved in the composition of the Central budget;

2) local budgetary programs:



a) budgetary programs velayat, city of Ashgabat, approved budget consisting of velayat, city of Ashgabat;



b) budgetary programs etrap (cities with rights etrap) approved budget consisting of etrap (city of etrap rights);



ç) budget program in the city, etrap Gengeša approved in budget etrap composition.



2. the budget of the programme referred to in paragraph 1 of this article are:



1) depending on how you implement:



and-one implemented) one-on-one budget programme administrator;



b) distributed a certain program fiscal budget programme administrator, which shall be apportioned during the current fiscal year between different administrators of budget programs.



2) current budget programmes and budgetary development programmes.



3. Current budgetary provision has been made for programmes:




1) support activities for budgetary institutions in accordance with their competence of public services to individuals and legal entities;



2) funding of a non-continuing nature;



3) providing conditional grants among the budgets of the budget system;



4) financing of public benefits and other social payments to certain categories of citizens;



5) provision of grants to legal persons in accordance with the legislation of Turkmenistan;



6) education reserves the Government of Turkmenistan and local authorities;



7) implementation of the commitments of the State (for external loans, the participation of Turkmenistan in international organisations, Government guarantees and other);



8) other objectives.



The volume of financing current budget programs includes current and capital expenditures.



Capital expenditures include costs associated with the strengthening of material and technical base of budgetary institutions, major (reductive) repairs and other expenses, except budget investments, in accordance with the budget classification of Turkmenistan.



4. Budgetary development programmes include programmes with budgetary investments and State participation in the share capital of legal entities.



5. Provision of public services in the framework of the ongoing budget programmes are carried out in accordance with the legislation of Turkmenistan, standards of public services, included in the register of State services.



6. the standard of public services is a normative legal act establishing requirements for public services rendered include the characteristics of the process, the content, form and result delivery of public services.



Civil service standards are developed and approved by the relevant ministries, departments of Turkmenistan.   



 



Article 32. Budget programme administrator



Administrators of budget programs are:



1) organs of State administrative bodies and local authorities;



2) budget institutions that do not have a parent body of public administration;

3) individual economic actors operating on the principles of economic calculation, receive earmarked allocations from the budget for implementation of the budget of the programmes;



4) public associations in Turkmenistan, receiving earmarked allocations from the budget for implementation of the budget programmes.



 



Article 33. Public administrators



                     budget programs



Administrators of public budget programs are State authorities and in accordance with their responsibilities laid down by the legislation of Turkmenistan, as well as other authorities referred to in article 32 of the present code.

 



Article 34. Local administrators of budget programs



Administrators of local budgetary programs are appropriate units, their authorized Branch Office and departments (education, health, culture and other), the Gengeshi, territorial bodies of the ministries and departments of Turkmenistan, whose activities are in accordance with the legislation of Turkmenistan is financed by means of the local budget.

 



 



SECTION II. Inter-budgetary relations and forms management



 



Chapter 8. Intergovernmental relations



 



Article 35. General conditions of interbudgetary relations



 



1. Mežbûdžetnymi relations are the relations between in the budget process:

1) Centralized budget and budgets of the velayats, Ashgabat;

2) Centralized and budget stabilization fund of Turkmenistan;



3) Centralized budget and the Pension Fund of Turkmenistan;



4) in place of the budgets and the budgets of the districts (towns with etrap rights);



5 city) budget and the budgets of the districts in the city;




6 etrap) budget and budgets of the Gengeshi.



2. By the decision of Cabinet of Ministers of Turkmenistan may be inter-budgetary relations between budgets velayats (Ashgabat) in cases of natural and man-caused emergencies, public or international importance.



3. Intergovernmental Relations are carried out in accordance with the Division of responsibilities between levels of Government and based on the principles of the budgetary system of Turkmenistan and inter-budgetary relations.



4. In case of adoption in the period of the current fiscal year budget regulations, entailing an increase in basic income and (or) basic and (or) reduction of basic income lower budgets and mandatory in the current fiscal year, shall be provided compensation for the loss of the lower budgets.



5. In case of adoption in the period of the current fiscal year budget legislation, entailing an increase in the basic expenses of the higher budget in connection with the transfer of functions, limits on staffing of State bodies from a lower to a higher level of Government and binding in the current fiscal year, shall be provided compensation for the loss of the higher budgets.



 



Article 36. Principles of interbudgetary relations



Intergovernmental relations are based on the following principles:



1) equality in the relationship between the Centralized budget and budgets of the velayats, Ashgabat, the budgets of the regions with the budgets of the districts (towns with etrap rights), the budgets of cities with the budgets of the districts in the city;

2) delineation and securing the main income of certain budgets budgets of the budget system of Turkmenistan;



3) distribution and consolidation of major expenditures on certain budgets of the budget system of Turkmenistan;



4) equalization levels minimum budgetary security budgets of the budget system of Turkmenistan.



 



Chapter 9. Regulation of interbudgetary relations



 



Article 37. Forms of regulation of interbudgetary relations



1. Intergovernmental Relations between Centralized budget and budgets of the velayats, Ashgabat, between the budgets of the velayats, Ashgabat and the budgets of the districts (towns with etrap rights) shall be governed by the regulations: income distribution, mežbûdžetnymi grants and subsidies.

2. Intergovernmental grants are divided into unconditional (General) grants conditional (earmarked) grants, broken down into current and capital.



3. Intergovernmental Relations between the Centralized budget of Turkmenistan and the Pension Fund are governed by the legislation of Turkmenistan.



 



Article 38. Intergovernmental unconditional grants



1. Intergovernmental unconditional grants (equalizing grants)-grants provided without specific conditions of use and to cover current expenditures connected with the implementation of the local authorities of their functions.

2. Aligning the grants are budgetary grants and budget.



3. Budgetary subsidies are budgetary funds transferred from the central budget to the budgets of the velayats, Ashgabat, from the budgets of velayat, city of Ashgabat respectively in budgets of districts (towns with etrap rights), etraps in the amounts established by the relevant budget.



4. Fiscal exemptions are budgetary funds transferred from the budgets of the velayats, Ashgabat in the central budget, the budgets of districts (towns with etrap rights), etraps in budget respectively velayat, city, in amounts approved by a corresponding budget.



5. Amount of unconditional grants are set in absolute terms for the plan period by year.



6. Equalization grants are channeled to equalize fiscal capacity level regions and provide a standard level of public services in accordance with the directions of the main expenses for each match budget the budgetary system of Turkmenistan.




7. In determining the amount of the unconditional grants accounted for the tax potential of the region, the number of consumers of public services in the region, standards of public services and the factors that affect the costs of providing public services depending on the specifics of each region.



 



Article 39. Calculation of amount of inter-budgetary



                    unconditional grants



1. the amount of inter-budgetary unconditional grants is defined as the difference between the projected volume of basic income (minus the conditional grants) and projected volume of core costs of the local budget.

2. If you exceed the projected volume of basic income over projected volume of core costs of the local budget, the budget establishes exemptions from the local budget in higher budget.



When exceeding the projected volume of major expenditures over the projected volume of basic income of local budget establishes budgetary grants to the local budget from a higher budget.



3. the amounts of calculation technique of inter-budgetary unconditional grants, the procedure and the frequency of its enumeration shall be determined by the Ministry of Finance of Turkmenistan.



 



Article 40. Intergovernmental conditional grants



                    and conditions of their provision



1. Intergovernmental conditional grants-budget provided by the upstream to the downstream budget budget on the basis of the agreed conditions and sanctions in case of non-compliance.

2. Intergovernmental conditional grants are available in amounts approved by the relevant budget for the implementation of certain targeted expenditures of ongoing budgetary programmes, budgetary development programmes, as well as compensation in accordance with parts of the fourth and fifth articles 35, not taken into account when calculating conditional grants.



3. Intergovernmental conditional grants to development flow from upstream to downstream implementation budgets budget budgetary investment projects by State and local budgetary programs.



Allowed joint financing from the local budget, local budget, for the realization of investment projects which are conditional grants for the development of a higher budget.



4. Intergovernmental conditional grants are listed from upstream of the budget on the basis of:



1) normative legal acts, which alleged distribution of total amount of inter-budgetary conditional grants between lower budgets;



2) of the agreement on the results of intergovernmental conditional grants;



3) individual financing plan for the relevant budget program of payments approved in the prescribed manner;



4) documents confirming the validity of the payment budget programme administrator lower intergovernmental budget conditional grants.



5. Intergovernmental conditional grants used by local executive authorities in accordance with their purpose, specific relevant budget programmes.



6. not Used for the intended purpose of the conditional grant of inter-budgetary amount refundable to the budget, is allocated a specified amount, in the manner prescribed by the Ministry of Finance of Turkmenistan.



7. do not used during the financial year the amount of inter-budgetary conditional grants, allocated from the central budget, with the exception of the reserve of the Government of Turkmenistan, on the decision of the Cabinet of Ministers of Turkmenistan can be used in the next financial year, in accordance with their intended purpose.



Not used during the financial year the amount of inter-budgetary conditional grants allocated from the budget of velayat, city of Ashgabat, excluding allocated from the reserve of the authority of local executive authority of velayat, city of Ashgabat, by decision of the velayat of Ashgabat city, he can be used in the next financial year, in accordance with their intended purpose.



Not used during the financial year the amount of inter-budgetary conditional grants allocated for the reported fiscal year allowed for the decision of the Cabinet of Ministers of Turkmenistan or velayat he, Ashgabat, shall be surrendered to the budget allocated them before December 31 of the current fiscal year.




8. the procedure for the elaboration of an agreement on the outcome of intergovernmental conditional grants listing them, preparation and submission of a report on the results of direct and outcomes are determined by the Ministry of Finance of Turkmenistan.



 



SECTION III. Drafting, consideration and adoption of the budget



 



Chapter 10. Budgeting basics



 



Article 41. General provisions



1. Drawing up budgets of the budget system of Turkmenistan is carried out on the basis of forecasts of the basic directions of social and economic development of Turkmenistan and Turkmenistan investment program regions in accordance with the present code and other normative legal acts of Turkmenistan adopted on its basis.

2. In the budgeting process are developed:



1) project, Turkmenistan law "on the State budget of Turkmenistan for the period covered by the draft decision, the representative body of local authorities on local budget;



2) draft medium-term plans of the authorities;



3) draft budget programmes.



 



Article 42. Development prediction of the basic directions of social and economic development of Turkmenistan



1. Prediction of major trends in the social and economic development of Turkmenistan for the planning period is indicative in nature and are developed taking into account strategic and medium-term policy papers on the socio-economic development of the country.

2. Forecast of basic directions of social and economic development of Turkmenistan shall contain:



1) at the State level, the priorities of social and economic development of Turkmenistan with the establishment of macroeconomic indicators and social parameters for the planning period;



2) at the local level the priorities of socio-economic development of the region for the plan period.



3. Forecast of basic directions of social and economic development of Turkmenistan and regions is being developed by the Ministry of economy and development of Turkmenistan and local authorities, economy and development, with the participation of public administrations and local authorities every year on a rolling basis in the manner and time that are established by the Cabinet of Ministers of Turkmenistan.



 



Article 43. Forecast budget parameters



1. Forecast the budget parameters developed for the plan period on the basis of draft guidelines for socio-economic development of Turkmenistan, regions and must contain:

1) at the State level:



and main directions) fiscal policy of Turkmenistan and the main indicators of the State budget of Turkmenistan and Central budget;



b) projected volumes of expenditures of the State budget programme administrators;



2) at the local level:



a) main directions of fiscal policy and the main indicators of the local budget;



b) projected volumes of local administrators costs budget programmes.



2. forecast for fiscal parameters is developed by the Ministry of Finance of Turkmenistan and local financial bodies with the participation of Central Government, local authorities every year on a rolling basis and shall be reported to the relevant authorities and budget programme administrators.



The order and timing of the forecast budget parameters are set by the Ministry of Finance of Turkmenistan.



 



Article 44. The draft medium-term plan



                    public authority



1. the medium-term plan of the public authority is a document that defines the main directions, goals, objectives, performance indicators public authority, including budgetary programs with funding for the planning period, which leads to the achievement of planned results.


2. The draft medium-term plan of the public authority for the plan period is three years, on the basis of the medium-term strategic programme documents of Turkmenistan, the forecast of basic directions of social and economic development of Turkmenistan and forecast budgetary parameters.



3. Amendments to the medium-term plan of the State body shall be made in the following cases:



1) enacting laws of Turkmenistan or amending existing laws of Turkmenistan, resulting in a change in the indicators of the medium-term plan;



2) adoption of new national and sectoral programmes;



3) change functions, structure of a public body;



4) change the settings of the budgets that impact on achieving the result indicators.



If you make changes and additions to the medium-term plans of the State bodies, including the specification of the budget, the requirements established by this code for the formulation of medium-term plans and clarify the budget.



4. the procedure for the formulation of the medium-term plan is determined by the Ministry of finance in cooperation with the Ministry of economy and development of Turkmenistan.



 



Article 45. Operational plan



1. For the implementation of the medium-term plan of the public authority operational plan is being developed.



Operational plan is a document that contains specific actions of the public authority to implement the approved medium-term plan in the first year of the planning period and linked to resources, a timeline for implementation of activities indicating the responsible performers.

2. Operational plan is developed annually and shall be approved prior to 10 January of the current financial year the head of the public body.



 



Article 46. Planning for the main budget revenues



Basic income budget planning is carried out on the basis of draft guidelines for socio-economic development of Turkmenistan and forecast budget parameters to the appropriate planning period in accordance with the tax, budgetary and other legislation of Turkmenistan.

 



Article 47. Planning of the main budget expenditures



1. Basic Planning budget is carried out separately for basic expenditures and spending on new initiatives.



2. Basic expenses are the costs of a permanent nature, capital expenditures, as well as ongoing budgetary investment projects.

Costs of a permanent nature are the costs associated with the provision of public services and other obligations of the State.



3. The cost of the new initiatives include the cost of:



1) implementation of the new directions of socio-economic development, the funding for which is included in the budgetary programs next fiscal year in accordance with the strategic and medium-term policy documents;



2) increased the cost base that is not associated with a change in macroeconomic and social indicators and providing additional budget expenditures in connection with the expansion of the functions and the increasing volume of public services provided by the administrator of the budgetary programmes within the framework of implemented budget programmes.



Budgeting for new initiatives budget programme administrator in accordance with this paragraph is carried out both at the expense of the additional budgetary resources and due to the reallocation of the cost base of the budget programme administrator as provided in the previous planning period.



4. the relevant budget planning budget programme administrators submit for consideration:



1) in the Ministry of economy and development of Turkmenistan and the Turkmenistan Ministry of finance or the local economy and local development finance authority-draft medium-term plan or proposals for amendments and additions to the approved medium-term plan of the public body;




2) in the Ministry of Finance of Turkmenistan or local financial institution, the budget proposal and the draft medium-term plan for the period covered by the plan or proposals for amendments and additions to the approved medium-term plan, finalized taking into account the opinions of the Ministry of economy and development of Turkmenistan and the Turkmenistan Ministry of finance or economics and local development and local fiscal authority.  



Administrators of budget programs, not developing the medium-term plan, submit to the Ministry of Finance of Turkmenistan or local fiscal authority budget application and projects budget programmes for the plan period.



In cases where evaluation results to documents referred to in this paragraph, the results of the evaluation are attached.



 



Article 48. Budget request



1. the budget request is a collection of documents compiled by the administrator of budget programs to justify the expenses foreseen for the next planning period.

2. the budget request includes:



1) calculations by types of expenditure under each line program;



2) information about received and used grants from donors as of 1 January of the current financial year;



3) forecast revenues from the implementation of budgetary institutions of goods (works, services) and the costs of their implementation;



4) explanatory note;



5) other necessary information upon request of the Ministry of Finance of Turkmenistan or the local financial authority.



3. Explanatory note on the budget request contains main directions of spending for the plan period, description of the asserted budget programs, substantiation of basic expenses and new activities, analyzing performance results on budget programmes of the previous plan period.



4. the Administrator introduced the budget programs budget request in accordance with and within the volume of the budget envisaged for it in the budget parameters forecasting of Turkmenistan for the planning period.



5. administrator of budget programs ensures completeness and accuracy of the information and calculations contained in the budget request.



6. Procedures for the preparation and submission of budget requests is determined by the Ministry of Finance of Turkmenistan.



 



Article 49.  Consideration of the draft medium-term plans or proposals for amendments and additions to the approved medium-term plans of the State bodies, as well as the budgetary programmes and projects budget requests

1. the Ministry of economy and development of Turkmenistan and the Ministry of Finance of Turkmenistan or local organs economy and development and local financial authorities are considering the draft medium-term plans or proposals for amendments and additions to the approved medium-term plans of the State bodies for compliance with the strategic and medium-term programme documents, draft guidelines for socio-economic development and the forecast of the budgetary parameters, the budget and other legislation of Turkmenistan.



Based on the results of consideration of the draft medium-term plans or proposals for amendments and additions to the approved medium-term plans of the State bodies of Ministry of economy and development of Turkmenistan and the Ministry of Finance of Turkmenistan or local organs economy and development and local financial authorities were preparing findings and forward them to the relevant State bodies.



2. The public authority finalizes the draft medium-term plan or proposals for amendments and additions to the approved medium-term plan, taking into account the opinions received from the above-mentioned bodies, is the budget request and submit it to the Ministry of Finance of Turkmenistan or local fiscal authority.



3. The Ministry of Finance of Turkmenistan and local financial bodies shall:



1) budget proposal of budget programme administrators on their compliance with the budget and other legislation of Turkmenistan, draft guidelines for socio-economic development and the forecast of the budgetary parameters and standards of public services;




2) indicators of the effectiveness of budgetary programs represented in the proposed medium-term plan or proposals for amendments and additions to the approved medium-term plan for their relationship with the strategic goals and objectives of the public body;



3) performance indicators presented in the draft budget programs of budget programme administrators, not formulating the medium-term plan for compliance with the activities and functions of the administrator of budget programs.



The Ministry of Finance of Turkmenistan or local financial institution on the basis of its consideration of budget requests prepares opinion on the expenditure of budget programme administrators.



4. conclusion on the differences between a public authority, the administrator of budget programs and the Ministry of economy and development of Turkmenistan or the local Department of economy and development, the Ministry of Finance of Turkmenistan or local financial authority on indicators to be submitted to the drafting of the budget, are sent for consideration by the Minister, respectively, of the economy and development of Turkmenistan and to the Minister of Finance of Turkmenistan.



In accordance with the decisions taken by public authorities, differences of budget programme administrators are finalizing the draft medium-term plans or proposals for amendments and additions to the approved medium-term plan, programme budget and budget requests and submit them to, respectively, in the Ministry of economy and development of Turkmenistan or local economy and development, the Ministry of Finance of Turkmenistan or local fiscal authority.



 



Chapter 11. Development of the project, Turkmenistan law "on the State budget of Turkmenistan and the decisions of the representative body of local authorities on the local budget for the plan period



 



Article 50.   Development of the project, Turkmenistan law "on the State budget of Turkmenistan for the plan period

1. the Ministry of finance develops the project of the Turkmenistan law "on the State budget of Turkmenistan for the period covered, which must include: 1) total basic income and expenses, operating balances, transactions in nonfinancial assets, net lending/borrowing (surplus/deficit), transactions in financial assets.



As part of the main indicators of income and expenditure income and expenditure of State trust funds are envisaged for each of the funds;



2) amount of fiscal grants, subsidies and other transfers;



3 transfer required amount) from the Stabilization Fund of Turkmenistan to the centralized budget;



4) regulations from major taxes in local budgets;



5) the amount of the reserve of the Government of Turkmenistan;



6) lists of protected objects of expenditure budget for the first financial year of the planning period, are not subject to sequestration during budget implementation.



The draft of the Turkmenistan law "on the State budget of Turkmenistan" on the planning period may provide other indicators.



2. In the State budget of Turkmenistan for the period covered by the costs of new activities for the second and third years of the planning period for each administrator of budget programs reflects a budget program.



3. To draft of the Turkmenistan law "on the State budget of Turkmenistan for the plan period shall be accompanied by:



1) forecast main directions of social and economic development of Turkmenistan and project investment programme of Turkmenistan;



2) draft medium-term plans or proposals for amendments and additions to the approved medium-term plans of the State bodies-public administrators of budgetary programmes;



3) projects budget programs administrators State budget programmes, formulating medium-term plans;



4) data on the State of public debt in the current fiscal year;



5) explanatory note concerning the draft of the State budget of Turkmenistan for the planning period.




4. the amount of the surplus/deficit of the State budget for the first financial year of the planning period stated in monetary terms and percentage of gross domestic product.  



5. the Ministry of finance no later than 1 November of the current year, submits for consideration to the Cabinet of Ministers of Turkmenistan project, Turkmenistan law "on the State budget of Turkmenistan for the plan period.



 



Article 51. The development of the draft decision, the representative authority of the velayat



                    (Ashgabat) on the budget of the velayat



                    (Ashgabat) for the plan period

1. A financial institution of the velayat (Ashgabat) is developing a draft decision the representative authority of the velayat (Ashgabat) on the budget of the velayat (Ashgabat) for the planning period, which should include:



1) total basic income and expenses, operating balances, transactions in nonfinancial assets;



2) amount of fiscal grants, subsidies and other transfers;



3) regulations from major taxes in the budgets of the districts (towns with etrap rights), district in the city;



4) the amount of the reserve authority velayat (Ashgabat);



5) lists of protected budget expenditure not subject to sequestration during the execution of the local budget for the first financial year of the plan period, established by the Turkmenistan law "on the State budget of Turkmenistan for the plan period.



In the draft decision, the representative authority of the velayat (Ashgabat) on the budget of the velayat (Ashgabat) for the planning period may provide other indicators.



2. the draft decision, the representative authority of the velayat (Ashgabat) on the budget of the velayat (Ashgabat) plan period cost of new activities for the second and third years of the planning period for each administrator of budget programs reflects a budget program.



3. At the same time as the draft decision the representative authority of the velayat (Ashgabat) on the budget of the velayat (Ashgabat) for the period covered by the financial institution of the velayat (Ashgabat) submits the following documents:



1) draft medium-term plans or proposals for amendments and additions to the approved medium-term budget plans Government bodies-local administrators of budgetary programmes;



2) projects budget programs administrators of local budgetary programs not formulating medium-term plans;



3) explanatory note concerning the draft budget of the velayat (Ashgabat) for the planning period.



4. A financial institution of the velayat (Ashgabat) submits to the Executive authority of the velayat (Ashgabat) draft decision the representative authority of the velayat (Ashgabat) on the budget of the velayat (Ashgabat) for the planning period.



 



Article 52.    The development of the draft decision, the representative authority etrap (towns with etrap rights), ètrapa in the city of (City) etrap budget for the plan period



1. Fiscal Authority etrap (towns with etrap rights), in etrap develops draft decision the representative authority etrap (towns with etrap rights), in etrap budget etrap (City) in the planning period, which should include:

1) total basic income and expenses, operating balance;



2) amount of fiscal grants, subsidies and other transfers;



3) lists of protected local budgetary expenditure programmes not subject to sequestration during the execution of the local budget for the plan period, established by the Turkmenistan law "on the State budget of Turkmenistan for the plan period.




2. the draft decision, the representative authority etrap (towns with etrap rights), in etrap budget etrap (City) in the planning period activities new costs for the second and third years of the planning period for each administrator of budget programs reflects a budget program.



3. At the same time as the draft decision the representative authority etrap (towns with etrap rights), in etrap budget etrap (City) in the planning period, the Department of finance etrap (towns with etrap rights), in etrap submits the following documents:



1) draft medium-term plans or proposals for amendments and additions to the medium-term plans of the State bodies-local administrators of budgetary programmes;



2) explanatory note concerning the draft budget etrap (towns with etrap rights), in etrap planning period.



4. Financial authority etrap (towns with etrap rights), in etrap submits to the Executive authority etrap (towns with etrap rights), etrap in draft decision the representative authority etrap (towns with etrap rights), in etrap etrap budget (town) in the planning period.



 



 



Chapter 12. Approval of budgets



 



Article 53. Adoption of the State budget of Turkmenistan for the plan period



1. The President of Turkmenistan presents for consideration and adoption by the Majlis of Turkmenistan draft State budget of Turkmenistan for the planning period.

2. The Turkmen Parliament in the manner provided by the rules of the Mejlis of Turkmenistan, shall review the draft of the State budget of Turkmenistan and accepts the law of Turkmenistan "on the State budget of Turkmenistan for the plan period.



3. If the Majlis of Turkmenistan until the beginning of the next fiscal year will not be accepted by the Turkmenistan law "on the State budget of Turkmenistan for the plan period, until its adoption by funding core costs of the programme budget for the first financial year of the planning period for each month shall be paid in amount of 1/12 volume of basic expenses of the previous fiscal year.



4. The law of Turkmenistan "on the State budget of Turkmenistan for the plan period shall be published in accordance with the legislation of Turkmenistan.



 



Article 54. Approval of local budgets



                    for the planning period



1. The Executive authority of velayat, Ashgabat has been making in the representative authority of the velayat (Ashgabat) draft budget of the velayat (Ashgabat) for the planning period.  

2. The Executive authority of the etrap (towns with etrap rights), in etrap makes representative authority etrap (towns with etrap rights), etrap in draft budget (City) etrap for the plan period.



3. for its consideration of the draft budget for the plan period the corresponding representative body of local authorities creates a working group from among the members of this body.



The Working Group could be held by the representatives of the local authorities.



4. the Working Party formulates suggestions and comments in the form of amendments to the draft budget for the plan period, informed the relevant calculations. While the proposals of the Working Group members should be in conformity with the priorities of socio-economic development of the region, the goals and objectives stipulated in the medium-term plans of the State bodies.



5. The Working Group is a representative body of local authorities informed of the amendments to the draft budget for the plan period.



6. at the meeting of the representative body of local authorities debated the draft of the local budget for the plan period and the amendments thereto, prepared by the working group.




During the discussion of the report he heard the respective administrative-territorial unit or person (s) authorized (authorized) local executive body, on the local budget for the plan period, as well as the conclusion of the person (s) authorized (authorized) the representative body of local authorities on the draft budget for the plan period.



7. the decision of the representative authority of the velayat (Ashgabat) on the budget of the velayat (Ashgabat) for the planning period must be taken by the representative authority of the velayat (Ashgabat).



8. the decision of representative authority etrap (towns with etrap rights), in etrap budget etrap (City) in the planning period must be taken by the representative authority etrap (towns with etrap rights), in etrap.



9. If the representative body of local authorities before the next fiscal year will not be decided on the local budget for the planning period, until its adoption financing costs shall be carried out in accordance with part 3 of article 53 of the present code.



10. the decisions of the representative bodies of the local authorities on local budgets for the planning period are published in accordance with the legislation of Turkmenistan.



 



Article 55. Secret budget programs



The secret budget of the programme envisaged in the State budget of Turkmenistan and are treated by the Majlis of Turkmenistan in accordance with the legislation of Turkmenistan.

 



Chapter 13. The development and adoption of the State budget of Turkmenistan-emergency, stopping his actions



 



Article 56.  Foundation for the development and adoption of Emergency the State budget of Turkmenistan, its termination

1. Grounds for the development and adoption of Emergency the State budget of Turkmenistan or its termination are respectively the imposition or lifting of State of emergency on the territory of Turkmenistan in accordance with the legislation of Turkmenistan.

2. A State of emergency on the territory of one or several administrative-territorial units of Turkmenistan may be grounds for the adoption of the State budget of Turkmenistan-emergency only when the effects of a State of emergency can present a real threat to national interests and economic security of the country.



3. the emergency the State budget of Turkmenistan is being developed by the Ministry of finance in agreement with the Cabinet of Ministers of Turkmenistan and approved in the form of the Act.



 



 



SECTION IV. Budget execution



 



Chapter 14. General provisions on the budget and its execution principles



 



Article 57. General provisions on the budget



1. Budget execution is financing the costs of the implementation of the objectives and functions of the State stipulated by the budgetary programmes, on the basis of ensuring the income budget revenue, transactions with financial and non-financial assets, as well as other operations in the current fiscal year.

2. The budget for expenditure effected within amounts of budgetary funds for the current fiscal year, approved by the Turkmenistan law "on the State budget of Turkmenistan for the plan period, or by a representative body of local authorities on local budget for the planning period.



Use in the current fiscal year budget, the second and (or) third financial years of the plan period are not allowed.



3. The Cabinet of Ministers of Turkmenistan and local executive authorities organize execution of the State budget and local budgets.




4. Ministry of Finance of Turkmenistan and local fiscal authority to ensure implementation of the State budget and local budgets, coordinate the activities of the organs of State power and administration, the local authorities, as well as budget programme administrators for implementing the budget.



The Ministry of Finance of Turkmenistan, within the limits of their competence develops and approves regulations governing the execution of the Central budget and local budgets, carries out methodological guidance on their implementation, management of budgetary accounting, preparation and submission of reports, defines the procedure for the execution of the budget and its servicing.



 



Article 58. Principles of budget execution



Budget execution is carried out in accordance with the following principles:



1) targeted use of budgetary funds;



2) completeness and timeliness enrolment into the State budget of Turkmenistan and local budgets incomes and budget-on accounts of recipients;

3) Unity cash (transactions on execution of the State budget of Turkmenistan with a single treasury account);



4) uniform implementation of the budget revenue and expenditure in order to avoid education debt.



 



Chapter 15. The process of implementation of the budget



 



Article 59. Organization budget execution



Basic documents, in accordance with the budget execution are: 1) this code;

2) Turkmenistan law "on the State budget of Turkmenistan or the decision of the representative body of local authorities on local budget for the planning period;

3) decisions of the Cabinet of Ministers of Turkmenistan or the authority of local executive authority, to be taken in the current financial year and influencing the implementation of the budget;



4) medium-term plans of the authorities;



5) budgetary program of budget programme administrators;



6) agreement on results provides reach conditional grants;



7) master plan of financing under obligations, consolidated income plan and the financing of payments under the relevant budgets;



8) plans of financing under obligations and payments of budget programme administrators;



9) individual plans of financing under obligations and payments of budgetary institutions;



10) normative acts of the Ministry of finance governing the execution of the budget in accordance with this code.



 



Article 60.  Master plan of financing under obligations, consolidated income plan and finance payments on the respective budgets



1. Development, approval and maintenance of a consolidated plan of financing under obligations, consolidated income plan and finance payments on Central and local budgets were implemented accordingly by the Ministry of Finance of Turkmenistan and local financial authority.

2. The master plan of financing under obligations under the relevant budget shall be drawn up in accordance with the budget classification of Turkmenistan on the basis of the financing plans for the commitments of budget programme administrators.



Plans of financing under obligations of budget programme administrators are defined within the budgetary programs annual budget funds administrators, the amount of commitments for each quarter being taken directly by them and subordinated budgetary institutions.




3. Consolidated earnings plan of income and the financing of payments is a document defining a balanced quarterly plan income budget revenue and financing budgetary programmes on payments.



Consolidated revenue plan of income and the financing of payments under the relevant budgets drawn up by the Ministry of Finance of Turkmenistan or local financial authority in accordance with the budget classification of Turkmenistan.



Master plan of income revenue in the budget shall be drawn up taking into account:



1) timing of budget revenues, stipulated by the legislation of Turkmenistan;



2) analysis of income for previous years;



3) analysis of the dynamics of the yields of Government securities and the level of demand and supply in the market of securities;



4) conditions of credit agreements, contracts, loans, grants agreements.



Consolidated payment financing plan shall be drawn up on the basis of financing schemes for payments of budget programme administrators determining within intended them annual amounts of budgetary funds budget amounts for each quarter, the necessary budget programme administrator directly and its affiliates budgetary institutions for payments at the expense of commitments.



The annual amount of the consolidated plan of financing under obligations, consolidated revenue plan of income and the financing of payments shall be the relevant income and expenditure approved budget.



 



Article 61.  Individual plans of financing under obligations and payments of budgetary institutions. Plans of financing under obligations and payments of budget programme administrators

1. Individual plans of financing under obligations and payments of budgetary institutions are compiled by budgetary institutions in accordance with the budget classification of Turkmenistan and are submitted to the administrators of budget programs for approval and for the plan of financing under obligations and payments of budget programme administrators.



2. plans of financing under obligations and payments of budget programme administrators are drawn up by administrators of budgetary programmes, in accordance with the budgetary classification of Turkmenistan, approved budget programs and are submitted to the Ministry of Finance of Turkmenistan or local fiscal authority.



Administrator of budget programs ensures that scheduled appointments on a quarterly basis, with a view to the timely implementation of the operational plan.



3. The master plan of financing under obligations, consolidated income plan and the financing of payments plans of financing under obligations and payments of budget programme administrators, individual plans of financing under obligations and payments of budgetary institutions are prepared and approved for the first financial year of the planning period.



4. Ministry of Finance of Turkmenistan or local financial authority may on proposals of budget programme administrators to make changes in their plans of financing under obligations and payments on individual articles of the budget classification of Turkmenistan and the subprogrammes of budget programs within annual and quarterly volume of expenditure according to budget program, as well as changes in quarterly amounts of expenditures on budgetary implications.  



Changes in individual plans of financing under obligations and payments of budgetary establishments are managed by the administrator of the programme budget in accordance with the adopted changes in the plans of financing under obligations and payments budget programme administrator.



5. the procedure for the establishment and maintenance of a consolidated plan of financing under obligations, consolidated income and financing plan payments, plans of financing under obligations and payments of budget programme administrators, individual plans of financing under obligations and payments of budgetary establishments, as well as modifications are set by the Ministry of Finance of Turkmenistan.




 



Chapter 16. Invoices for cash servicing



                  budget execution



 



Article 62. Types of bank accounts for cash servicing



                    budget execution



Accounts for cash servicing of budget implementation are:

1) Single Treasury account;



2) account in foreign currency;

3) control accounts of cash;



4) accounts of budgetary institutions.



 



Article 63. A single treasury account



1. A single treasury account of the Ministry of Finance of Turkmenistan opened in the Central Bank of Turkmenistan in national currency to be credited the Turkmenistan State budget revenues, payments and bills operations at the expense of the State budget of Turkmenistan and doing their posting.

2. the single treasury account includes balances control of cash.



 



Article 64. The Ministry of Finance of Turkmenistan account in foreign currency



Accounts for the kinds of foreign currencies Department opened at the Central Bank of Turkmenistan to conduct transactions in foreign currency and doing their posting.

 



Article 65. Cash control accounts



1. cash control accounts are opened in the Treasury Department of the Ministry of finance to account for the operations for the execution of each Central and local budget associated with the transfer of income and carrying out payments.

2. the operations referred to in paragraph 1 of this article, take into account, in accordance with the budget classification codes of budgetary institutions and Turkmenistan.



3. the procedure for opening, maintaining and closing of control accounts, cash is set by the Ministry of Finance of Turkmenistan.



 



Article 66. Account budgetary institutions



1. Budgetary institutions may maintain accounts:



1) in the Treasury Department of the Ministry of Finance of Turkmenistan:



a) account for transfer of funds from the sale of budgetary institutions of goods (works, services) and holding due to these payments (paid services) in accordance with article 79 of the present code;

b) account for enrollment and spending sponsorship, charitable aid;



2) Bank of Turkmenistan, with the exception of the Central Bank of Turkmenistan:



(a)), the special account budget of the investment project, opened in foreign currency, in accordance with an international treaty on State loans, ratified by Turkmenistan, or in agreements on grants, revolving through advance payments of the Government foreign loan or grant;



(b)), the special account budget investment project opened for payments at national (foreign) currency;



ç) Revolving account fiscal investment project opened in the period of implementation of the budget of the investment project, to enroll and use the funds returned in borrowers repayment on the loan, given the expense of Government external loans.



2. the operations referred to in paragraph 1 of this article, take into account, in accordance with the codes of budget institutions.




3. The establishment, maintenance and closure of accounts of budgetary institutions in the Treasury Department of the Ministry of Finance of Turkmenistan are carried out in the manner determined by the Ministry of Finance of Turkmenistan.



Opening, maintaining and closing of accounts in banks of Turkmenistan budget institutions are carried out in the manner prescribed by the banking legislation of Turkmenistan.



 



Chapter 17. Budget execution



 



Article 67. Implementation of the budget of income income



Implementation of the budget of income income includes:



1) crediting of earnings on a single treasury account;

2) distribution of basic income coming into the State budget of Turkmenistan, between the Centralized budget and budgets of the velayats (Ashgabat), between the local budgets in accordance with this code;

3) refund of the overpaid budget basic income on the basis of the opinion of the tax authority.



 



Article 68. Зачисление доходов на Единый



                    казначейский счёт



1. revenues to the State budget of Turkmenistan comes in the form of cash and fully credited on the single treasury account in accordance with the budget classification of Turkmenistan.

2. Earnings credited to the account of the Ministry of finance in foreign currency shall be credited on the single treasury account in the national currency of Turkmenistan by converting official rate set by the Central Bank of Turkmenistan on the day of the transaction.  



 



Article 69. Distribution of basic income



1. The distribution of major revenue to the State budget of Turkmenistan, between the Centralized budget and budgets of Vela



âtov (Ashgabat), between the local budgets is carried out according to the Ministry of Finance of Turkmenistan and local financial bodies.

2. taxes are allocated to standards approved by the Turkmenistan law "on the State budget of Turkmenistan», or by the decision of the relevant representative body of local authorities on local budget for the planning period.



 



Article 70. Use a transfer from the Stabilization Fund of Turkmenistan



The amount of the transfer to the centralized budget of Turkmenistan from the stabilization fund is determined by the Ministry of Finance on a monthly basis within the limits of the amount of transfer, approved for the first financial year of the planning period on the basis of income forecast central budget and budgetary surpluses.

 



Article 71.  Refund of overpaid amounts of budget (recovered) amounts in the revenue budget or their standings in arrears



1. Refund of overpaid amounts of budget (recovered) amounts in the revenue budget or their standings in the debt repayment is carried out by the Ministry of Finance of Turkmenistan or local financial authority in accordance with the legislation of Turkmenistan.

2. Reason for return of overpaid budget (collected) the amounts in income or budget their standings in arrears is the conclusion of a relevant State body for taxes and other major budget income within its competence.



 




Article 72. Budget performance expenditures



1. The budget for expenditure includes:



1) adoption of budget programme administrators monetary obligations;



2) registration of monetary obligations adopted by administrators of budgetary programmes;

3) permit for the payment and money transfer operations with the single treasury account;



4) payments for authorized monetary obligations;



5) confirmation of the execution of the monetary obligations and reflected them in the post.



2. The budget for expenditure by making payments with a single treasury account to implement budgetary institutions commitments.



 



Article 73. Commitments budgetary institutions



1. budgetary institutions are financial obligations by concluding agreements with natural and legal persons or without enclosing them in accordance with the legislation of Turkmenistan.

2. contracts concluded budgetary institutions, subject to registration with the Ministry of Finance of Turkmenistan and local financial bodies according to the codes of budget classification of Turkmenistan.



Contracts related to the:



1) budgetary development programmes with a term of more than one year;



2) current budget programmes involving acquisitions, manufacturing technology which makes their shipment in subsequent financial years;



3) providing services for more than one fiscal year in cases stipulated by the legislation of Turkmenistan;



4) provision of services in accordance with the treaties, although not stipulated by law, but not contradicting, completion of which comes in the next fiscal year;



5) funding at the expense of the reserve of the Government of Turkmenistan with a term of more than one financial year,



must be registered for the whole term of their action within the amounts approved by the individual plan of financing under obligations for the first financial year of the planning period, and the base budget of the second and third years of the plan period.



When you change the base budget expenditures referred to treaties are subject to re-registration.



3. When the registration of the contract, concluded the budgetary institution in foreign currency, while the amount of the contract in the national currency by the sum of the contract conversion of foreign currency into national currency at the official exchange rate established by the Central Bank of Turkmenistan on the date of registration of the contract.



4. Ministry of Finance of Turkmenistan or local fiscal authority gives the budget establishment notice of registration of the contract.



5. Registration of treaties after 20 December of the current fiscal year is not allowed, except budgetary allocations from the reserve of the Government of Turkmenistan or local executive body.



6. the procedure for the registration of treaties of budgetary establishments, as well as a list of objects of expenditure to the budget classification of Turkmenistan, on the registration of those treaties is required is determined by the Ministry of Finance of Turkmenistan.



 



Article 74. Suspension of registration of contracts, payments and bills operations




1. The Ministry of Finance of Turkmenistan or local fiscal authority suspends party documents of budgetary institutions for registration of treaties and of payments and money transfer operations in the manner and within the period defined by the Ministry of Finance of Turkmenistan, in the following cases:

1) changes in the individual plans of financing under obligations and payments;



2) exhibiting the collection orders;



3) if unused sum of foreign currency is not restored to the budget code of the budget classification agencies of Turkmenistan, with which the national currency is expressed in foreign currency;



4) the decision on seizure of budget programs.



2. the suspension of the registration of contracts, payments and bills of Exchange operations in accordance with paragraphs 1-3 of the first paragraph of this article shall be effected by budget program, except for payroll expenses, government benefits and other payments to individuals, stipulated by the legislation of Turkmenistan, as well as on transfer of tax payments and pension contributions, bank charges.



3. registration of treaties, holding payments and transfer operations of budget institutions are suspended in cases provided by:



1) item 1 of the first paragraph of this article-till the completion of the procedures for making changes to individual plans of financing under obligations and payments according to the codes of budget classification of Turkmenistan;



2) paragraph 2 of the first paragraph of this article, until the collection of orders according to the codes of budget classification of Turkmenistan, which exhibited data orders;



3) item 3 of part one of this article to recover the amount of any unused foreign currency code fiscal budget classification agencies of Turkmenistan, with which the national currency is expressed in foreign currency;



4) paragraph 4 of the first paragraph of this article-till the completion of the procedures for making changes to individual plans of financing under obligations and payments according to the codes of budget classification of Turkmenistan on programme budget subject to sequestration.



 



Article 75. Payments and transfer operations in



                    national currency



1. Payments and transfer operations on performance of monetary obligations of budgetary institutions, adopted in the manner prescribed by article 73 of this code shall be conducted within the limits stipulated by the individual plan of financing, cash balances on control accounts and accounts of budgetary establishments, as well as the amounts of the contracts.

2. no payments and money transfer operations on contracts without registering them under articles of the budget classification of Turkmenistan, where such registration is compulsory.



3. the amount receivable fiscal agencies in past years is repayable through delivery of goods (works, services), required under the terms of the contract, either by the creditor in return income associated budget.



4. a list of the articles and the expenditure of the budget classification of Turkmenistan, on which the registration of the contracts is mandatory, as well as payment and money transfer operations are determined by the Ministry of Finance of Turkmenistan.



 



Article 76. Send order



1. Send order applies to the enforcement of Executive Agency budget documents issued by judicial authorities, as well as to pay off the tax debt, owed to the Customs authorities in the manner prescribed by the legislation of Turkmenistan.


2. There shall be no issuance of orders for collection a single treasury account and the accounts in foreign currencies, open the Ministry of Finance of Turkmenistan, cash control accounts appropriate budgets and temporary placement of funds.



 



Article 77. Payments and transfer operations of budgetary institutions in foreign currency



Payments and transfer operations of budgetary institutions in foreign currency are carried out in accordance with the monetary legislation of Turkmenistan.

 



Article 78. Budget management



1. Budget Management is carried out by the Ministry of Finance of Turkmenistan on the basis of:



1) forecast cash flows through the definition of the expected amounts of income basic income, amounts of the basic costs of operations with non-financial and financial assets, the use of surplus or deficit financing cash flow for the current fiscal year;

2) monitoring of the movement of funds to control the cash account of the corresponding budget.



2. the Ministry of Finance carries out the provision in the amount of cash required for the payments envisaged by the master plan of income and the financing of income payments.



3. Net lending/borrowing, determined in accordance with article 20 of this code, is surplus cash deficit/respectively.



4. In the case of the forecast cash deficit of the corresponding budget its borrowing expense coverage or make changes in the consolidated plan of receipts of income and the financing of payments in accordance with this code.



5. In the case of the forecast cash surplus corresponding budget the Ministry of Finance of Turkmenistan or local fiscal authority determines the amount of temporarily free budget funds.

Temporarily free budget funds are funds on the single treasury account, which are not used within a certain time period of the current fiscal year.



In order to make rational use of temporarily free budget funds and income-related budget temporarily free budget funds of central budget and the budgets of the velayats, Ashgabat hosted deposits (deposits) banks of Turkmenistan.



Accommodation budget in deposits with credit institutions are not allowed, except in the case provided for this part.



6. placement of temporarily free budget funds of Central and local budgets is carried out by the Ministry of Finance of Turkmenistan.



7. procedure for placing temporarily free budget funds is determined by the Ministry of finance in agreement with the Central Bank of Turkmenistan.



 



Article 79.  Execution at the expense of budgetary institutions received from realization of goods (works, services)



1. For operations at the expense of budgetary institutions received from realization of goods (works, services), their annual income and expenditure estimates compiled from the realization of goods (works, services) by types.




2. budget programme Administrator in accordance with the procedure determined by the Ministry of Finance of Turkmenistan is and claims on its affiliates budgetary institutions consolidated estimate of revenues and expenditures from the realization of goods (works, services) by types on the appropriate budget program (sub-programme) on the basis of estimates of income and expenditure from the realization of goods (works, services) by types submitted by budgetary institutions.  



3. the expenses of budgetary institutions at the expense of funds from realization of goods (works, services) are carried out in accordance with the order of expenditure of such funds, determined by the Ministry of Finance of Turkmenistan, and approved the consolidated income and expenditure estimates from the realization of goods (works, services) by types.



4. Registration of treaties on operations at the expense of budgetary institutions received from realization of goods (works, services) shall be carried out in accordance with article 73 of this code.



5. estimated income and expenses from the realization of goods (works, services) by types may be specified in the case of income in the current financial year in excess of the amounts provided for in the approved budget.



6. payments at the expense of budgetary institutions received from realization of goods (works, services) are carried out within the actual availability of funds on the account of the budget-funded agency in the Treasury Department of the Ministry of finance or the Treasury Division of the local fiscal authority to account for funds received from realization of goods (works, services).



 



Article 80. Completion of the financial year



1. The operation of the current fiscal year related to the transfer of revenues to the budget and the implementation of payments from the budget, completed 31 December of the current fiscal year.

2. remains of scheduled appointments, not used on 31 December of the current financial year, inclusive, shall be cancelled.



 



Article 81. Budgetary surpluses



1. Remnants of the budget at the end of the reporting financial year are funds remaining unused in the reported fiscal year, as well as over revenue.

2. The remnants of the budget at the beginning of the current year are funds remaining unused on the outcome of the implementation of the budget for the reported fiscal year, as well as over income as of 1 January of the current financial year.



3. local budgets, budgetary surpluses are not subject to seizure (transfer) to a higher budget.



4. Budgetary surpluses at the beginning of the year can be used through the clarification of budget of the current fiscal year in accordance with article 82 of this code:



1) service and repayment of principal on loans received;



2) listing in lower budget the unpaid part of the registered obligations reported fiscal year, financed at the expense of development grant in cases where the amount of the grant is not fully transferred from the parent for the reported fiscal year budget;



3) financing costs in the current financial year, carried out at the expense of current grants allocated from the upstream budget, in the amount of unused at the beginning of the current fiscal year, the balance of these grants allocated for the reported fiscal year;



4) financing the unpaid part of the registered obligations of reporting fiscal year as provided in paragraphs 1-3 of part 2 of article 73 of this code.




5. Budgetary surpluses central budget at the beginning of the year, except for the remnants of State trust funds, after the distribution of the objectives of the fourth part of the present article, shall be sent to the stabilization fund.



Budgetary surpluses from local budgets at the beginning of the year after the distribution of the objectives of the fourth part of this article, as well as clarification of inter-budgetary relations grants in the current financial year are free of residues of budgetary funds and may be used to finance the cost of the current year through the clarification of budget.



 



Chapter 18. Clarification of budget. Sequestration



 



Article 82. Clarification of budget



1. Clarification of the State budget of Turkmenistan is the change of Central and local budgets, carried out in the following cases:

1) the adoption of regulatory legal acts of Turkmenistan, with the exception of acts of ministries and other central bodies of State administration, leading to a reduction in income or increase in expenses of Centralized and (or) local budgets;

2) reduce (growth) revenue of Central and local budgets in the course of their performance in excess of ten per cent of the approved annual volume for the current fiscal year;



3) conditional grants amounts allocated from upstream;



4) for part of the fourth article 13 and part of a fifth article 81nastoâŝego of the code;



5) amending the budget classification of Turkmenistan;



6) education, liquidation, reorganization, changes in the function of the organs of State power and administration, including local authorities, and their affiliated companies, organizations and institutions. With this clarification of the budget lies in the merger, Division, transfer of appropriate budgetary programs associated with these cases, within the total amount approved (corrected), the expenditure according to budget programmes;



7) during the financial year allocation of funds from the reserve of the Government of Turkmenistan or organ of the local executive authorities;



8) the existence of grounds stipulated in part 3 of article 26 of the sixth and seventh instalments article 40, part of the fourth article 81, paragraph 2, article 83 of this code.



2. Clarification of the State budget of Turkmenistan can be implemented through:



1) adoption by the Majlis of Turkmenistan of the corresponding Act or the decisions of the representative body of local authorities;



2) the making of the Ministry of Finance of Turkmenistan or local financial authority of changes in consolidated revenue plan of income and the financing of payments consolidated plan of financing under obligations under relevant budgets based on the acts of the President of Turkmenistan respectively or the decisions of the authority of local executive authorities.



3. Clarification of the State budget for the current fiscal year in accordance with paragraph 1 of part two of this article shall be carried out, if the grounds provided for in paragraph 1 of this article, change the total amounts of income and expenditure of the budget, approved by the Turkmenistan law "on the State budget of Turkmenistan or by a representative body of local authorities on local budget for the planning period.




4. Clarification of the State budget for the current fiscal year in accordance with paragraph 2 of part two of this article shall be carried out, if the grounds referred to in paragraph 1 of this article do not lead to a change in the total amounts of income and expenditure of the budget, approved by the Turkmenistan law "on the State budget of Turkmenistan or by a representative body of local authorities on local budget for the planning period.



5. When deciding on the basis of a proposal by the Ministry of Finance of the State budget of Turkmenistan in part reduced budgetary programs, the Ministry of Finance of Turkmenistan or local fiscal authority may suspend the operation of these programmes.  



6. Clarification of the State budget of Turkmenistan in accordance with paragraph 1 of part two of this article shall be as provided for in this code for project planning of the State budget of Turkmenistan and local budgets and their approval.



 



Article 83. Sequestration



1. Sequestration-reduction of expenditures on approved budgetary programmes in cases of income during the execution of the State budget of Turkmenistan, in the current fiscal year in volume, below the approved budget, as a result of which it becomes impossible to finance the expenses in full.

2. Sequestration of the budgetary expenditures of the programme budget an amount less than ten per cent of the approved annual volume of expenditure on these programmes is carried out through the clarification of budget, in accordance with paragraph 2 of part 2 of article 82nastoâŝego of the code, for an amount exceeding ten per cent through the clarification of budget, in accordance with paragraph 1 of part two article 82 of this code.



 



 



Section v. accounting and financial reporting. Fiscal accounting and reporting on budget execution



 



Chapter 19. Accounting and financial reporting



 



Article 84. Accounting and financial reporting of budgetary institutions

Budgetary institutions provide accounting, preparation and presentation of financial statements in accordance with the legislation of Turkmenistan.

 



Chapter 20. Fiscal accounting and reporting



                  on the budget



 



Article 85. The main provisions of budget accounting



Budgetary accounting-continuous orderly system of collection, recording and summarizing in monetary terms on budget entries on the single treasury account and the accounts of budgetary establishments, taking into account the condition of the assets and liabilities of the Cabinet of Ministers of Turkmenistan and local authorities, as well as their change.

 



Article 86. Budget accounting



Fiscal accounting based on the chart of accounts and the budget structure, as provided for by article 14 of this code shall be subject to basic income, expenditure, financial and nonfinancial assets and liabilities.

 



Article 87. Maintenance budget accounting and preparation of budget performance reporting




1. conduct of fiscal accounting and performance reporting are set by the Ministry of Finance of Turkmenistan.

2. budgetary accounting Data are the basis for reporting performance.



3. Forms of fiscal accounting and reporting on budget execution are approved in accordance with the legislation of Turkmenistan.



4. performance Reporting should contain accurate and complete information about committed transactions in accordance with the provisions of this code and other normative legal acts of Turkmenistan.



 



Article 88. Types of performance reporting



1. performance Reporting includes the following types of reports:



1) reports drawn up by budgetary institutions:



(a)) on the performance of individual financing schemes;

(b) performance plans) of income, received from the realization of goods (works, services), and expenditure at the expense of such proceeds;



ç) on the receipt of income derived from sponsorship and charitable assistance and expenses due to such proceeds;



d) receivables and Payables;



2) reports drawn up by administrators of budget programs:



(a)) on the outcome of the budget monitoring;



(b)) financing plan for the performance of budget programs (subprograms);



ç) plans performance income proceeds from realization of goods (works, services), and expenditure at the expense of such proceeds;



(d)) on the receipt of income derived from sponsorship and charitable assistance and expenses due to such proceeds;



(e)) of the accounts receivable and accounts payable;



ä) on the implementation of the medium-term plan;



3) reports prepared by the Ministry of Finance of Turkmenistan and local financial bodies: a) on the execution of the State budget of Turkmenistan respectively and central budget, local budgets;



(b) income) on revenues and using the tools of State trust funds;



ç) on the formation and use of funds stabilization fund of Turkmenistan;



(d) performance plans revenue) revenue received from realization of goods (works, services), and expenditure at the expense of such income for Central or local budget;



(e)) on the status of assets and liabilities of the Cabinet of Ministers of Turkmenistan, local executive authorities;



ä) on the receipt of income derived from sponsorship and charitable assistance, and expenditure at the expense of such income for central budget or local budget;



(f)) of receivables and Payables of central budget or local budget;




4) reports for the reporting financial year submitted to the Majlis of Turkmenistan and local authority representative respectively by the Cabinet of Ministers of Turkmenistan, body of local authorities: a) on the execution of the State budget or local budget;



(b)) on the formation and use of funds stabilization fund of Turkmenistan.



2. the Ministry of Finance has the right to establish additional types of performance reporting in accordance with the legislation of Turkmenistan.



 



Article 89. Presentation of reports



                    on the budget



1. report on the State budget of Turkmenistan and local budget for the reporting period reflects the performance of the approved (utočnënnogo) of the State budget and local budgets, including registered, outstanding obligations, as well as the execution of the corresponding revenue budget revenues and paid commitments on budgetary implications.

2. the Ministry of Finance on a monthly basis as of the first day of the month following the otčëtnym, introduced the report on the execution of the State budget of Turkmenistan in the Cabinet of Ministers of Turkmenistan.



3. local fiscal authority monthly as of the first day of the month following the otčëtnym, introduced the report on the performance of the local budget in the local executive and higher fiscal authority.



 



Article 90. Report of the public authority on the implementation of the medium-term plan



1. report of the State body on the implementation of the medium-term plan provides information on the achievement of the objectives and performance indicators of the public authority, including information on budgetary implications.

2. the State bodies-ministries, departments of Turkmenistan annually before 1 March of the current fiscal year are report on the implementation of the medium-term plan in the Cabinet of Ministers of Turkmenistan, Ministry of Finance of Turkmenistan.



3. State bodies-directorates and departments under the authority of local executive authority, annually before 1 February of the current fiscal year are the report on the implementation of the medium-term plan in the local executive authorities and local fiscal authority.



 



Chapter 21. Performance report for the reported fiscal year



 



Article 91. Presentation of the report on the execution of the State budget of Turkmenistan



                    for the reported fiscal year

1. The Ministry of Finance of Turkmenistan presents a report on the execution of the State budget of Turkmenistan for the reporting financial year at Cabinet of Ministers of Turkmenistan no later than 30 April of the year following the otčëtnym.

2. report on the State budget of Turkmenistan for the reported fiscal year includes:



1) data on the State budget of Turkmenistan in the context of indicators established by the Turkmenistan law "on the State budget of Turkmenistan";



2) explanatory note:




a) analytical information on the economic situation and the realization of basic directions of fiscal policy defined basic directions of social and economic development of Turkmenistan and the State budget of Turkmenistan;



b) analytical data on the State budget of Turkmenistan for income revenues, implementation of the State budget on the basis of the programmes conducted by the budget monitoring and analysis of the implementation of the medium-term plans of the State bodies for the reporting financial year towards achieving established goals and performance indicators.



3. Annual report on the State budget of Turkmenistan is submitted to the Majlis of Turkmenistan at the time of submission of the draft of the State budget of Turkmenistan in the next planning period.



 



Article 92.  Consideration and adoption by the Majlis of Turkmenistan report on the execution of the State budget of Turkmenistan



  for the reported fiscal year



1. The Turkmen Parliament considers the report on the execution of the State budget of Turkmenistan for the reported fiscal year and hears:

1) report to the person (s) authorized (authorized) by the Cabinet of Ministers of Turkmenistan, on the State budget of Turkmenistan;



2) reports of persons authorized by the Majlis of Turkmenistan, with conclusions on the report on the execution of the State budget of Turkmenistan.



When considering the report on the execution of the State budget of Turkmenistan for the reported fiscal year in the Majlis of Turkmenistan can be also heard reports of State bodies on implementation of State budget programmes.



2. Following the consideration of the report on the execution of the State budget of Turkmenistan for the reported fiscal year the Turkmen Parliament decides on the approval of the report on the execution of the State budget of Turkmenistan for the reported fiscal year.



 



Article 93.    Presentation of the report on the budget of the velayat (Ashgabat) for the reported fiscal year



1. A financial institution of the velayat (Ashgabat) before 1 March of the year following the otčëtnym, introduced the report on the budget of the velayat (Ashgabat) for the reported fiscal year executive authority of velayat (Ashgabat) and the Ministry of Finance of Turkmenistan.

2. report on the financial performance of the velayat (Ashgabat) for the reported fiscal year must contain:



1) data on performance in terms of indicators, endorsed the decision of the representative authority of the velayat (Ashgabat) on the budget of the velayat (Ashgabat);



2) explanatory note:



a) analytical information on the economic situation and the realization of basic directions of fiscal policies adopted in key areas of socio-economic development and budget velayat (Ashgabat);



b) analytical data on the performance of the budget of the velayat (Ashgabat) for income revenues, budgetary programmes, on the basis of the conducted analysis of the budget monitoring and implementation of the medium-term plans of the State bodies for the reporting financial year towards achieving established goals and performance indicators.




3. The Executive authority of velayat (Ashgabat) is the representative authority of the velayat (Ashgabat) simultaneously with the presentation of the draft budget for the next planning period the draft decision the representative authority of the velayat (Ashgabat) approving the report on the budget of the velayat (Ashgabat) for the reported fiscal year, a report on the budget of the velayat (Ashgabat) for the reporting fiscal year.



 



Article 94. Consideration and adoption of the report on the budget of the velayat (city



                    Ashgabat) for the reported fiscal year



1. Representative authority of velayat (Ashgabat) within two weeks considering the report on the budget of the velayat (Ashgabat) for the reporting fiscal year.

2. during its consideration of the report on the budget of the velayat (Ashgabat) for the reported fiscal year representative authority of velayat (Ashgabat) hear performance reports:



1) person (s) authorized (authorized) body of the Executive power of the velayat (Ashgabat);



2) Chairman of the Working Group;



3) person (s) authorized (authorized) representative authority of velayat (Ashgabat).



3. in its consideration of the report on the budget of the velayat (Ashgabat) for the reported fiscal year representative authority of velayat (Ashgabat) can be also heard reports of local administrators of budgetary programs of budget programmes.



4. Following the consideration of the report on the budget of the velayat (Ashgabat) for the reported fiscal year representative authority of velayat (Ashgabat) decides on the approval of the report on the budget of the velayat (Ashgabat) for the reporting fiscal year.



 



Article 95.  Presentation of the report on the budget of etrap (towns with etrap rights), in etrap for the reported fiscal year



1. Fiscal Authority etrap (towns with etrap rights), in etrap before 1 February of the year following the otčëtnym, introduced the report on the budget of etrap (towns with etrap rights), in etrap for the reported fiscal year in local Executive etrap (towns with etrap rights), in etrap and higher fiscal authority.

2. report on the financial performance of etrap (towns with etrap rights), in etrap for the reported fiscal year must contain:



1) data on performance in terms of indicators, endorsed the decision of the representative body of the local government budget etrap (towns with etrap rights), in etrap;



2) explanatory note:



a) analytical information on the economic situation and the realization of basic directions of fiscal policies adopted in key areas of socio-economic development and budget etrap (towns with etrap rights), in etrap;



b) analytical data on the financial performance of etrap (towns with etrap rights), etrap in revenue income, the implementation of the budget on the basis of the programmes conducted by the budget monitoring and analysis of the implementation of the medium-term plans of the State bodies for the reporting financial year towards achieving established goals and performance indicators.




3. the authority of local executive authority is the representative body of local authorities at the time of submission of the draft budget for the next planning period the draft decision the representative body of the local authority approving the report on the budget of etrap (towns with etrap rights), in etrap during the reported financial year, a report on the budget of etrap (towns with etrap rights), in etrap for the reported fiscal year.



 



Article 96. Рассмотрение и утверждение отчёта об



                    исполнении бюджета этрапа (города с



                    правами этрапа), этрапа в городе



                    за отчётный финансовый год

1. Representative body of local authorities within two weeks considering the report on the budget of etrap (towns with etrap rights), in etrap for the reported fiscal year.



2. during its consideration of the report on the budget of etrap (towns with etrap rights), in etrap for the reported fiscal year representative local authority hears performance reports:



1) person (s) authorized (authorized) by the authority of local executive authorities;



2) Chairman of the Working Group;



3) person (s) authorized (authorized) the representative body of the local authority.



3. in its consideration of the report on the budget of etrap (towns with etrap rights), in etrap for the reported fiscal year a representative body of local authorities can be also heard reports of local administrators of budgetary programs of budget programmes.  



4. Following the consideration of the report on the budget of etrap (towns with etrap rights), in etrap for the reported fiscal year representative local authority adopts a decision approving the report on the budget of etrap (towns with etrap rights), in etrap for the reported fiscal year.



 



Chapter 22. Annual report on the formation and use of funds stabilization fund of Turkmenistan



 



Article 97.  Annual report on the formation and use of funds stabilization fund of Turkmenistan

1. the Ministry of Finance of Turkmenistan is the annual report on the formation and use of funds stabilization fund of Turkmenistan and up to 30 April of the year following the otčëtnym, submits it to the Cabinet of Ministers of Turkmenistan.

2. Annual report on the formation and use of funds stabilization fund of Turkmenistan shall contain: 1) report on the use of funds and income stabilization fund of Turkmenistan;



2) other data stabilization fund management of Turkmenistan.



3. The procedure for drawing up the annual report on the formation and use of funds stabilization fund of Turkmenistan, approved by the Ministry of Finance of Turkmenistan.



 




Article 98. Adoption of the annual report on the formation of



                    using the tools of a stabilisation



                    Fund of Turkmenistan



The Cabinet of Ministers of Turkmenistan annually not later than 1 June of the current year, submit for the approval of the annual report of the President of Turkmenistan on the formation and use of funds stabilization fund of Turkmenistan.

 



 



Section VI. LOW INVESTMENT



 



Chapter 23. Планирование и реализация



                  бюджетных инвестиций



 



Article 99. General provisions



1. Budget investments the budgetary programmes are carried out through:

1) budgetary implementation of investment projects;



2) State participation in the share capital of legal entities.

2. budgetary investment projects are divided into State and local in dependencies:



1) arising from the ownership of the property (the central body of State power and administration or local executive body), received as a result of the implementation of the budget of the investment project;



2) of recipients economic benefits as a result of the implementation of the budget of the investment project. If the fiscal investment project aimed at socio-economic development of the two regions (velayats and Ashgabat), this investment project is public, if one region (province or city of Ashgabat) is local.



3. financing the State budget investment project is funded from the central budget, local budget investment project-at the expense of the local budget.



 



Article 100. Budget planning of investment projects



1. Budget Planning investment projects is carried out in three phases:



1) development of public authorities or administrators of budgetary programs of investment proposals at the stage of projects to their medium-term plans and programmes;

2) feasibility studies budgetary investment projects for facilities requiring such studies, and conducting relevant examinations;



3) definition of a list of budgetary investment projects.



2. formation of the list of budgetary investment projects implemented by the Ministry of economy and development of Turkmenistan on the basis of the public authorities or administrators of budgetary programs of investment proposals, feasibility studies and results of the relevant expertise of investment projects.




 



Article 101. Development of investment proposals



1. investment proposal must contain:



1) General information on the budgetary investment project;



2) information on the objectives of the project to the development priorities of the industry (sector) economy, certain strategic and programme documents of Turkmenistan;

3) forecast options industry development (sector) economy in cases of implementation of the budget of the investment project and if the project will not be implemented;



4) information on the distribution of benefits arising from the implementation of the budget of the investment project.



2. the Ministry of economy and development of Turkmenistan in accordance with the established procedure considers investment offers state bodies or public administrators or local budgetary programs and presents them with conclusions for consideration by the Cabinet of Ministers of Turkmenistan.



3. On the agreed by the Cabinet of Ministers of Turkmenistan investment proposals of the Ministry of economy and development of Turkmenistan produces a list of budgetary investment projects in accordance with part 2 of article 100 of the present code.



4. the procedure for budget formulation and review of investment projects and the selection of investment proposals are set by the Ministry of economy and development of Turkmenistan and the Ministry of Finance of Turkmenistan.



 



Article 102.  The inclusion of budgetary investment projects in the programme budget and the draft budget for the plan period



The basis for inclusion of budgetary investment projects in the budget programmes for the implementation of the budget and the draft budget for the planning period is the presence of the approved in the prescribed manner the feasibility of fiscal investment project, except for projects that do not require the development of a feasibility study.

Feasibility study of investment project budget is approved in accordance with the legislation of Turkmenistan.



The definition of a list of projects that do not require development



formulate a feasibility study, and their approval is carried out by the Cabinet of Ministers of Turkmenistan.



 



Article 103.  Budget planning investment through participation in the share capital of legal entities



 Budget planning investment through participation in the share capital of legal persons shall be as provided for in article 100 of the present code.

 



Article 104. Budget implementation of investment projects



1. budgetary investment projects are being implemented in accordance with the technical and economic reasons, approved in the prescribed manner.


2. Construction activities envisaged within the framework of the implementation of the budget of investment projects is carried out in accordance with the design and estimate documentation approved in the prescribed manner.



3. Construction activity in territory of the foreign States, envisaged in the framework of the implementation of the budget of investment projects is carried out in accordance with the documentation, approved in accordance with the legislation of the State in whose territory the project is implemented.



4. For budgetary investment projects with common technical parameters model project is being developed.



Financing for development and the examination of model projects are carried out at the expense of funds for specified purposes under budget program authorized State body in the field of construction.



 



Section VII. Grants. Subsidies



 



Chapter 24. Grants



 



Article 105. Grants classification



1. grants are divided into:



1) depending on the source of income:



a) grants from foreign Governments;

b) grants from international organizations;

ç) grants from other units of the State management sector;



2) depending on the destination:



a) current is provided on the implementation of current expenditure;



b) capital-provided on the acquisition or creation of assets or reconstruction of existing assets.



2. grants, referred to in subparagraphs a and b of paragraph 1 of this article shall be provided to Turkmenistan, in accordance with the agreement on the grant, under "ç" in accordance with section II of the present code.



 



Article 106. Planning grants



1. planning grants-development, introduction and selection of applications for travel grants, based on the proposals by donors.



Planning of capital grants implemented by the Ministry of economy and development of Turkmenistan, ongoing grants-Ministry of Finance of Turkmenistan.



2. applications for grants shall be submitted to the central body of State power and administration of Turkmenistan taking into account suggestions by the local authorities, respectively, in the Ministry of economy and development of Turkmenistan or Ministry of finance.



3. the selection of applications for travel grants is carried out on the basis of:




1) conformity of applications to attract grant priorities of social and economic development of Turkmenistan;



2) matching applications for grants policy grant to attract donors.



4. Ministry of Finance of Turkmenistan jointly with the Ministry of economy and development of Turkmenistan submits for approval by the Cabinet of Ministers of Turkmenistan in the list of applications for grants.



 



Article 107. Grants



1. On the basis of the approved by the Cabinet of Ministers of Turkmenistan to the list of applications for grants from the relevant bodies of State authority and administration, including local bodies of executive power in Turkmenistan, draw up applications for grants in the form established by donors.

2. In the State budget of Turkmenistan grants volume reflected under the respective years of the plan period, the amount of bids in accordance with the list provided for part of the fourth article 106 of the present code.



Grant agreement is after the approval of the State budget of Turkmenistan.



 



Article 108. The use of grants



1. use a separate budget form grants program (subroutine) and is carried out by the central organ of State power and administration or authority of local executive authorities of Turkmenistan-recipient of the grant in accordance with the grant agreement and the legislation of Turkmenistan.

2. the central organ of State power and administration or a body of local executive power in Turkmenistan-grantee submits a report that it has finished using a capital grant to the Ministry of finance and Ministry of economy and development of Turkmenistan, current grant-Ministry of Finance of Turkmenistan. The report must be signed by an authorized representative of the donor and the head of the central organ of State power and administration or a body of local executive power in Turkmenistan, which grant application.



 



Article 109. Monitoring and evaluation of the use of grants



1. monitoring the use of grants includes:



1) collection and processing of the central organs of State authority and administration of Turkmenistan or local executive power bodies, information on the progress and outcome of the use of grants;

2) representation of the central State authorities or local bodies of executive power of Turkmenistan, reporting on the progress and outcome of the use of grants to the Ministry of economy and development of Turkmenistan and the Ministry of Finance of Turkmenistan.



2. the forms and deadlines for reporting and requirements for reporting on the progress and outcome of the use of grants are determined by the Ministry of economy and development of Turkmenistan and the Ministry of Finance of Turkmenistan.



3. Evaluation of the use of capital grants implemented by the Ministry of economy and development of Turkmenistan, ongoing grants-Ministry of Finance of Turkmenistan on the basis of reports on the progress and outcome of the use of grants and provides:




1) comparison of the planned and achieved results of grants, as well as an analysis of their impact on the socio-economic development of the country and the region;



2) analysis and evaluation of the various external factors influencing the use of grants.



4. the Ministry of economy and development of Turkmenistan and the Turkmenistan Ministry of finance to form the consolidated reports on the use of capital and operating grants, respectively, based on the results of their evaluations, and submit them to the Cabinet of Ministers of Turkmenistan no later than 30 April of the year following the year of otčëtnym.



 



Chapter 25. Subsidies



 



Article 110. Grants and conditions of their provision



1. Subsidies are granted to legal entities on the basis of agreed conditions in the amounts established by the relevant budget for the implementation of certain targeted expenditures of ongoing budget programmes.  

2. grants listed on the basis of:



1) normative legal acts providing for the provision of services on preferential terms;



2) individual financing plan for the relevant budget program of payments approved in the prescribed manner, and on the results of the agreement;



3) documents confirming the validity of the payment budget programme administrator.



3. Subsidies are used in accordance with their purpose, defined in the relevant budgetary programs.



4. the procedure for granting subsidies for the preparation and submission of a report on the results of the implementation of the relevant budget program shall be determined by the Ministry of Finance of Turkmenistan.



 



 



SECTION VIII. УПРАВЛЕНИЕ ГОСУДАРСТВЕННЫМ



                ДОЛГОМ ТУРКМЕНИСТАНА



 



Chapter 26. General provisions



 



Article 111. Turkmenistan's state debt



1. Turkmenistan's state debt is composed of internal and external public debt.



2. Domestic public debt of Turkmenistan-part of the public debt, consisting of domestic public debt loans and other debt obligations of Turkmenistan before zaimodatelâmi-residents of Turkmenistan.




3. External debt of Turkmenistan-part of the public debt, consisting of external public debt loans and other debt obligations of Turkmenistan before zaimodatelâmi-non-residents of Turkmenistan.



 



Chapter 27. Management of public internal and external debt



 



Article 112. Management of Government domestic debt



The Ministry of Finance of Turkmenistan acts authorized agent of the State Government's domestic debt and represents its interests when concluding contracts and agreements on credit and loans.



 



Article 113. Management of public external debt



1. decisions on attracting external loans and credits on behalf of the State are accepted by the Cabinet of Ministers of Turkmenistan.



Intergovernmental agreements to attract foreign loans and credits on behalf of the State shall be signed in accordance with the legislation of Turkmenistan.



2. The Ministry of Finance of Turkmenistan acts authorized agent of the State Government's external debt and the right to participate in the negotiations for the conclusion of contracts with foreign creditors, to make proposals to the Cabinet of Ministers of Turkmenistan regarding the appropriateness of their findings.



 



Article 114. State monitoring



                      internal and external debt



State monitoring internal and external debt is exercised by the Cabinet of Ministers of Turkmenistan and the Ministry of Finance of Turkmenistan.



 



SECTION IX. Бюджетный мониторинг и



         оценка  результатов



 



Chapter 28. Общие положения о бюджетном мониторинге



                  и оценке результатов



 



Article 115. Budget monitoring

1. Budgetary monitoring is a systematic collection and analysis of performance information in order to monitor the implementation of the budget of income projections and execution of the budget, identify the causes of the late receipt of the revenue, commitments and payments for budgetary programmes.


2. Budget monitoring is carried out by the Ministry of Finance of Turkmenistan, local financial bodies, other State authorities in accordance with their competence and administrators of budget programs.



3. The administrators of State and local budgetary programs represent, respectively, the Ministry of finance and local finance authorities information on the results of the monitoring of the budgetary implications.



4. According to the Ministry of Finance of Turkmenistan budget monitoring, local executive authorities, local financial authorities quarterly direct reminder information ministries and departments about non-implementation of plans on taxes and other payments to the budget, budget programme administrators-about missed cash commitments to budgetary programmes in accordance with the plan of financing under obligations and late payment financing plan.



5. The Ministry of Finance of Turkmenistan, local financial authorities take into account the results of budget monitoring when updating the budget of the current year, as well as in the formulation of the budget for the planning period.



6. The Ministry of Finance of Turkmenistan provides overall methodological and methodical guidelines for budget monitoring.



 



Article 116. Score results



1. performance evaluation of public authority and admin budget programmes, including the implementation of the medium-term plan and programme budget of the public authority, is a comprehensive and objective assessment of the impact of public authority and budget programme administrator on the development of industries.

2. Evaluation of the results provides:



1) analysis of the choice of indicators of results, clarity and sharpness of their presentation, the correctness of the planning of resources needed for the implementation of the budget of the programme;



2) analysis of the degree of achievement of performance indicators, certain medium-term plans of the State bodies and the budgetary programs of budget programme administrators;



3) conformity assessment results obtained strategic directions, goals and objectives of the public body defined in the medium-term plan;



analysis of the causes of failure) 4 strategic objectives and performance indicators;



5) recommendations for improving the activity of a public authority and admin budget programs, increase (reduce) the volumes of financing budgetary programs or their exclusion from the budget.



3. In assessing the results also used information of public associations on the quality of government services received based on a survey of beneficiaries.



4. Evaluation of the results of database administrators (DBAs) budget programmes and relevant bodies of State power and administration, including local authorities.



5. procedures for the evaluation of the results is determined by the Ministry of Finance of Turkmenistan.



 




                 РАЗДЕЛ Х. Государственный



                    финансовый  контроль



 



Chapter 29. General provisions on State financial control



 



Article 117. The notion of State financial control

In this section, the following definitions are used: 1) State financial control (external and internal)-monitoring the efficiency, effectiveness and validity of the performance target of State financial control in accordance with the legislation of Turkmenistan;

2) objects of State financial control-the participants of the budgeting process.



 



Article 118. Types of State financial control



1. Types of State financial control are:



1) integrated control-inspection and assessment of financial and economic activity of the object of State financial control in total for a particular period of time.

Integrated control of State financial control bodies is carried out in budgetary institutions once every two years, enterprises carrying out activities on the principles of economic calculation, once a year;



2) thematic inspection-inspection and assessment of activities at the site of the State financial control on individual financial and Economic Affairs for a specified period;



3) counter-control checking of entities or individuals associated with the object of State financial control common financial relations, solely on their relationship within the validated destinations with the aim of obtaining and collating information.



2. State financial control under part 1 of this article may be carried out jointly by the State financial control bodies, as well as with other government bodies.



3. In the case of detection of signs of crime during the test or administrative violations of State financial control bodies transmit materials to law enforcement agencies or control bodies authorized to hear cases of administrative offences.



 



Article 119. Принципы и стандарты государственного



                      финансового контроля



1. the conduct of the State financial control is carried out on the basis of independence, objectivity, competence of the organs of State financial control, reliability, transparency, transparency of results of checks with account of provision of regime of secrecy.


2. State financial control must be carried out in accordance with the standards of the State financial control, establishing uniform requirements for initiating and drafting the documents adopted on the basis of testing results.



3. State financial control Standards are developed by Supreme Chamber of Turkmenistan, together with the Ministry of finance and approved by the President of Turkmenistan.



 



 



Chapter 30. Public financial bodies



                  control and their competence



 



Article 120. Bodies of State financial control



State financial control bodies are:

1) A control of Turkmenistan;



2) the Ministry of Finance of Turkmenistan and local financial bodies;

3) the main state tax service of Turkmenistan and its subdivisions in velayats, towns and etraps;



4) internal control authorities, including local authorities.



Article 121. The powers of the State financial control



State financial control bodies referred to in article 120 of the present Code, implementing financial monitoring compliance with budgetary legislation of Turkmenistan in accordance with the powers established by the legislation of Turkmenistan.



 



Chapter 31. Relationship between bodies and objects of State financial control, their responsibility



 



Article 122. Права и обязанности руководителя объекта



                       государственного финансового контроля

1. the head of State financial control object has the right to: 1) know the purpose, time, and duration of State financial control, its findings, conclusions and recommendations;



1) do not allow for control of State financial control officials, had not submitted the relevant document of State financial control bodies for financial control;



2) in case of disagreement with the audit results to submit to the authority of the State financial control, carrying out monitoring, objections in writing upon signing an act of control;




3) appeal against the actions of State financial control body that is responsible for monitoring, in the manner prescribed by the legislation of Turkmenistan.



2. the head of State financial control object in conducting of State financial control shall: 1) create a workers State financial control body, appropriate conditions for work, provide them with all requested documents and information relating to the Affairs of the State financial control;



2) to sign the Act of State financial control within three days from the date of its submission for examination and signature.



In case of disagreement with the results of the State financial control of State financial control object manager signs the Act and at the same time presents objections to act in accordance with paragraph 3 of this article;



3) enforce the directives of the State financial control body to rectify identified shortcomings and violations, to submit information on measures taken to eliminate them.



3. the Chief and other officials of State financial control object does not have the right to obstruct the conduct of a State financial control, limit its scale, to interfere in the actions of the State financial control organ.



4. the Chief and other officials of State financial control object responsible for submission of false, inaccurate and incomplete information in accordance with the legislation of Turkmenistan.



 



Article 123. Restrictions in the activities of the officials and employees of State financial control



1. the activities of the official bodies and employee of the State financial control restrictions associated with the passage of the public service, established by the legislation of Turkmenistan.

2. Employees of the State financial control prohibits financial control in State financial control on an object:



1) if the head or chief accountant of State financial control object is in accordance with the labor laws of Turkmenistan in close relationship with the employee property or public financial control body;



2) if they or persons in close relationship with them or property, have a direct or indirect financial dependence on State financial control object.



 



Article 124. Reporting on the results of the public



                       financial control



The Ministry of Finance of Turkmenistan submits a report on the work carried out on the implementation of the State financial control, the Cabinet of Ministers of Turkmenistan.


 



 



Chapter 32. Responsibility for violation of budgetary



                  legislation of Turkmenistan



 



Article 125. Ответственность за нарушение бюджетного



                      законодательства Туркменистана

Violation of this code and other normative legal acts of Turkmenistan budgetary legal relationship entails liability under the legislation of Turkmenistan.