The article assesses the current system of inter-budgetary relations in Kazakhstan. Problematic issues have been identified, such as the high dependence of local budgets on the republican budget - this is evidenced by the fact that more than 50% of local budget revenues are transfers from the republican budget; low self-sufficiency of regions – in Kazakhstan, only four regions are donors to the republican budget, all other regions are recipients of subventions; fiscal centralization, low motivation and incentives for local authorities to increase their own revenue base - most economic taxes go to the republican budget, local budgets receive mainly taxes from the payroll and territorial taxes (property, land, transport); donors have no incentive to increase their own income – since the higher the region’s income, the greater the volume of budget withdrawals to the republican budget; the subsidized regions are growing dependent moods – since the lower the region’s own income, the more budget subsidies they receive. The system of interbudgetary relations of the Republic of Kazakhstan includes relations not only between the republican budget and the budgets of regions (cities of republican significance and the capital), but also within regions, that is, between regional and district, district and rural budgets. This article discusses the issues and provides recommendations for improving the mechanisms of budget allocation between the center and the regions through the allocation of inter-budget transfers, in particular transfers of a general nature between the republican and regional budgets, budgets of cities of republican significance and the capital.