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Kazakhstan - Reforming intergovernmental fiscal relations

The report makes two major recommendations. First, it recommends that the Government of Kazakhstan provide separate, earmarked funding for functions with critical distributional implications. This would include primary education and primary health. These services would be financed on a capitation basis (i.e., an equal amount per pupil and registered patient, respectively.) The remaining subnational functions would be financed from an annually-determined share of the budget.