The main financial document of the country is in the focus of deputies’ attention

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December 14, 2017

The main financial document of the country is in the focus of deputies’ attention

On December 13 this year, the regular meeting of the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan was held. Deputies considered the drafts State Budget of the Republic of Uzbekistan and budgets of state trust funds, as well as discussed the main areas of the tax and budget policy for 2018. Deputy Prime Minister of the Republic of Uzbekistan – Minister of Finance J.Kuchkorov delivered a speech at the meeting.

Deputies noted that measures envisaged in this document are aimed at ensuring the achievement of goals and priorities identified by the President of the Republic of Uzbekistan Shavkat Mirziyoyev, as well as tasks outlined in the Strategy of actions on five priority areas of development of the Republic of Uzbekistan in 2017-2021. In the current year, significant systemic work has been carried out on consolidating efforts aimed at ensuring timely and full financing of the planned measures. At the same time, qualitatively new approaches to formation of the revenue part of the budget were used at the expense of increasing the independence of local budgets, identifying additional sources of income, as well as attracting additional funds. All these measures contributed to the achievement of the established macroeconomic indicators. The budget for the current year is expected to be implemented with a surplus of 0,1 percent of GDP, in execution of all the envisaged expenses and financing the approved programs.

Deputies emphasized that the large-scale reforms initiated in the current year in accordance with the Action Strategy require additional financial resources, in this connection the work on expanding and strengthening the revenue part of the budget is carried out on an ongoing basis.

The state fully fulfills its obligations on supporting the basic sectors of the economy, strengthening the social protection of vulnerable segments of the population, as well as financing approved programs on construction of objects of social infrastructure, housing and communal services, including roads, water supply, and eliminating other problems that require their solution.

It should be noted that during the meeting, deputies highly appreciated the innovative methods introduced in the budget planning process for the forthcoming period.

It was stated that for the first time the draft State Budget was compiled on the basis of macroeconomic indicators, price indices recognized by the world financial institutions. GDP in 2018 is forecasted at 290,6 trillion sums, the GDP deflator is 14,1 percent, the consumer price index is 12-13 percent. It was proposed to approve the State Budget with a surplus of 0,02 percent of GDP.

At the same time, the main directions of the tax policy for 2018 were discussed, providing for further reduction of the tax burden on business entities and incomes of the population, increasing incomes of local budgets. A reduction in the tax burden on individuals’ incomes due to an increase in the amount of deductions to individual savings accounts of citizens from 1 percent to 2 percent, reduction of fixed tax rates for individual entrepreneurs is proposed. It is also proposed to reduce the number of taxes and other mandatory payments by combining taxes and payments having the same tax base.

It was noted that granting the right to local authorities, taking into account the specifics of the regions and the location of the activity, to introduce decreasing and increasing coefficients to the established base rates for the tax on the property of individuals, the land tax of individuals and fixed tax will increase the independence and responsibility of state governing bodies at places.

The forecasted figures indicate that activities on supporting the social sphere will be consistently continued in 2018. In particular, expenditures on the social sphere will amount to 34,7 trillion sums.

In this regard, it was noted that the Legislative Chamber is directly involved in reforming the healthcare sphere, including by improving the legislative framework. Constant monitoring of the process of targeted and efficient spending of the State Budget funds is being conducted. In 2018, 9,6 trillion sums will be allocated to this sphere, which is 30,9 percent more than in the current year. This, in turn, will ensure financing of all activities within the framework of the adopted programs on reforming the healthcare sphere and medical services for the population. According to deputies, it is also important that it is expected to increase the cost of providing healthcare facilities, especially family polyclinics, emergency medical services with medicines and medical products. Budget expenditures for these purposes in 2018 will be increased by 2,5 times. In addition, it is envisaged to allocate 753,6 billion sums for the construction, reconstruction, overhaul of medical institutions in accordance with the State Program and instructions of the Head of the country during trips to the regions.

Deputies supported the proposals concerning the continuation of activities on renewal of the car park of the medical care service, unification of the republican and territorial coordination and dispatch services into a single data network. It is planned to allocate 141 billion sums for these purposes.

Thus, healthcare remains one of the priority items of the expenditure part of the budget, and this is quite logical, because, as deputies emphasized, public health is the most important.

At the same time, it was emphasized that priority should be given to preventing financial irregularities, increasing the executive discipline and responsibility for the targeted use of budgetary funds.

Therefore, implementation of effective public and parliamentary control over effective use of budgetary funds is of actual importance. Representative bodies at places should actively join in ensuring rational use of resources and completeness of revenues to the budget taking into account the strengthening of the revenue base of local budgets and consequent increase in their independence. In this regard, the parliament of the country will provide all kinds of assistance to local Kengashes of people’s deputies.

As a result of discussions, detailed answers were provided to all questions of parliamentarians.

The Prime Minister of the Republic of Uzbekistan A.Aripov delivered a speech at the meeting.

Representatives of all factions of political parties and a deputy group from the Ecological Movement proposed to support the draft State Budget and budgets of state trust funds submitted by the government, as well as the main areas of the tax and budget policy for 2018, which were approved by the Legislative Chamber.

Information Service of the Legislative Chamber
of the Oliy Majlis of the Republic of Uzbekistan