Tashkent, Uzbekistan (UzDaily.com) -- On 26 August 2020, at a regular meeting of the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan, the deputies considered the report on the execution of the State budget of the Republic of Uzbekistan and the budgets of state trust funds for the first half of 2020 submitted by the Cabinet of Ministers.

Officials from the Cabinet of Ministers, the Ministry of Finance, the Ministry of Economic Development and Poverty Reduction, as well as heads of other ministries, state committees and departments took part in the meeting via videoconference.

According to the report, the execution of the State budget for the first half of 2020 is aimed at ensuring the implementation of decrees and resolutions of the President of the Republic of Uzbekistan, government resolutions adopted within the framework of the budget parameters, which are defined in the Law of the Republic of Uzbekistan "On the State Budget of the Republic of Uzbekistan for 2020" to counter the pandemic coronavirus, preventing the consequences of the global crisis.

The coronavirus pandemic, as elsewhere in the world, has a negative impact on the economy of Uzbekistan. At the end of the first half of 2020, the country’s gross domestic product (GDP) made up 255.3 trillion. soums, which is 0.2 percent more than in the same period last year. State budget revenues amounted to 58,157.0 billion soums or fulfilled by 45.3 percent relative to the approved annual parameters.

State budget expenditures (excluding state trust funds) reached 64.88 trillion soums or 25.4 percent of GDP and 90.3 percent of the established expenditure plan. The budget deficit for the reporting period amounted to 6.7 trillion. The deficit was covered by international financial institutions (3.3 trillion soums) and proceeds from the placement of state treasury bonds (3.42 trillion soums). As of 1 July, the external debt of the state made up US$17.3 billion.

During the discussions, the deputies positively assessed the fact that during the reporting period the social orientation of the State budget was preserved, 53.4 percent of total budget expenditures were directed to financing social expenditures.

Along with this, the deputies drew attention to the fact that due to the coronavirus pandemic, losses were observed in the state budget revenues in the amount of 8.4 trillion soums in relation to forecast indicators, as well as on the reasons for their occurrence.

In addition, the people’s representatives emphasized the identification of a number of financial gaps in the targeted and effective use of funds allocated for the construction of health care facilities, drinking water facilities, irrigation and melioration, secondary schools, construction, reconstruction and equipping other social facilities in 1,632 cases in the amount of 81.7 billion soums, including shortages and development of funds in the amount of 18.2 billion soums and material wealth, as well as other types of offenses in the amount of 63.5 billion soums.

In the approved Investment Program for 2020, the current state of construction, reconstruction, overhaul and equipping of social facilities remains unsatisfactory. In turn, the deputies assessed as unsatisfactory the use of funds by 27 percent allocated to the sphere for this purpose. The disbursement rate under the Investment Program was 11 percent in preschool educational institutions, 5 percent in the Ministry of Physical Culture and Sports, and 8 percent in the Ministry of Culture, this was the subject of justified criticism of MPs.

During the discussions, the deputies gave specific proposals and recommendations on increasing local budget revenues, expanding the tax base, targeted and effective use of funds, reducing poverty, increasing the executive discipline of officials of local government bodies for material and moral support of the population in need of social protection, strengthening parliamentary control over the efficient execution of the State budget and state trust funds.

Following the meeting, the Legislative Chamber of the Oliy Majlis adopted a relevant resolution on the agenda item.

The deputies also discussed other issues within the competence of the Legislative Chamber.