Tashkent, Uzbekistan (UzDaily.com) -- On 1 June 2020, the regular plenary meeting of the Legislative Chamber of the Oliy Majlis was held, at which the deputies considered a report on the implementation of the State budget and budgets of state trust funds of the Republic of Uzbekistan for 2019. This was reported by the press service of the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan.

As noted, as a result of ensuring macroeconomic balance and achieving sustainable growth in sectors of the economy, gross domestic product increased by 5.6 percent. Positive growth rates in construction made up 19 percent, in industry - 6.6 percent, in the services sector — 5.1 percent, in agriculture, forestry and fisheries — 2.5 percent. Industrial development has contributed to the development of such areas as trade, consumer services, catering, education. In 2019, the volume of investment in fixed assets was equal to 189 trillion. 924 billion soums, which is 37.1 percent in relation to GDP.

Stability in the economy had a positive impact on the execution of the State budget in 2019. The large-scale reforms in the fiscal policy, carried out under the leadership of the President, as well as in the face of a reduction in personal income tax, a single social payment for business entities and income tax rates, have expanded the tax base in the economy. Despite the fact that value-added tax rates were significantly reduced, revenues from this type of taxes increased by 21.3 percent compared to 2018.

In short, ensuring the principle of fair taxation and reducing the share of the shadow economy led to serious changes in the revenue base and an increase in the number of official taxpayers.

As a result of this, in the reporting period, State budget revenues made up 112.2 trillion soums, or 21.9 percent relative to gross domestic product. Forecast indicators are fulfilled with an excess of 9.2 trillion soums or 109 percent.

Corporate income tax in budget revenues increased 4.7 times compared to the same period of 2018.

Thanks to benefits and preferences provided to entrepreneurs, funds in the amount of 12.8 trillion soums remained at the disposal of the economic entities themselves. Also, as a result of the reduction of the tax burden on personal income tax, household incomes increased by 6.5 trillion soums, which in turn contributed to the growth of real incomes of the population.

Fulfillment of the revenue side in excess of the approved plan allowed not only to finance all approved budget expenditures during 2019, but also to make 15.6 trillion soums of additional costs for the purpose of socio-economic development of the country.

In general, the state budget expenditures in 2019 increased by 48 percent compared to 2018. As in previous years, the share of social expenditures in the state budget was high, which made up 54 percent of total expenditures.

In the reporting period, 4.7 trillion soums were spent on expenses on social protection of the population and improving its well-being from the State budget. In particular, 235 billion soums were allocated for attracting about 350 thousand unemployed to temporary community service, 85 billion soums for employment in rural areas, and more than 4 trillion soums for the construction of affordable housing in rural areas and cities.

To implement a number of initiatives of the head of state on the development of science, 662 billion soums were allocated from the budget for social protection of employees of research institutions, improving the system of remuneration for their labor. As a result, the salaries of specialists in this field increased by an average of 82 percent compared to the same period of 2018.

During the discussion of the report, the deputies, noting the positive indicators, drew special attention to certain shortcomings in the implementation of the State budget.

For example, out of 8 thousand 74 budget organizations where control measures were carried out, 6 thousand 616 organizations revealed financial errors in the amount of 142.5 billion soums, including cases of shortage and misappropriation of funds and material wealth in the amount of 30, 3 billion soums, as well as 112.2 billion soums of illegal expenses.

Such cases show that mechanisms for exercising effective control over the targeted use of budget funds have not yet been formed.

Deputies paid special attention to issues of budgetary discipline, transparency and accountability. They emphasized that when allocating funds from the budget, it is primarily important to take into account the expected effectiveness and efficiency of them.

During the discussions, members of the lower house of parliament noted the need to strengthen executive discipline of local government officials, parliamentary control over the timely and quality execution of the state budget and the budgets of state trust funds for the coming period, as well as determine specific tasks for cooperation with local councils of people’s deputies.

At the meeting, the Legislative Chamber of the Oliy Majlis adopted a corresponding resolution on the report on the implementation of the State budget and the budgets of state trust funds for 2019.

On the same day, deputies considered the second issue on the agenda of the plenary session of the lower house of parliament - a report on the implementation of the State budget and budgets of state trust funds of the Republic of Uzbekistan in the first quarter of 2020.

As noted in the report submitted by the government, at the initiative of the President, for the first time,the State Budget for 2020 was adopted in the form of a law. At the same time, the budget, adopted earlier in the form of a resolution, was not just turned into a law, but important changes were also made in the budget system.

In particular, a big step was taken in financial decentralization, the independence of local budgets was increased, and the republican budget expenditures were adopted separately for each ministry. The parliament was given additional powers to hear information on the targeted and efficient use of budget funds and their results for each ministry and department.

These measures had a positive impact on the stable development of industries in the first quarter of 2020. According to the results of the reporting period, the growth of gross domestic gross product made up 4.1 percent. At the same time, the share of industry is 1.2 percent, services - 1.5 percent, agriculture, forestry and fisheries - 0.5 percent, construction - 0.4 percent.

Due to the coronavirus pandemic, a slowdown in international integration is observed in almost all countries of the world. This was the reason that the country’s foreign trade turnover made up 8.1 billion dollars or decreased by 10.2 percent (by 924 million dollars) compared to with the same period of 2019. The inflation rate in January-March 2020 was equal to 2.8 percent.

Nevertheless, the introduction of the new version of the Tax Code served to increase entrepreneurial activity in the economy, legalize income, and ensure the stable receipt of state budget revenues.

In particular, in the first quarter of 2020, State budget revenues made up 28.5 trillion soums, and expenses - 27.7 trillion soums. The budget is implemented with a surplus of 0.8 percent of GDP. State budget revenues increased by 23.6 percent compared with the same period last year. The established target indicators were fulfilled by 103.2 percent.

State budget expenditures for the first quarter of 2020 made up 27.7 trillion soums and increased compared to the same period last year by 14.6 percent. At the same time, the salary of employees of budgetary organizations is 11 trillion soums and equivalent payments, as well as deductions in relation to salaries in the amount of 2.2 trillion soums are financed in a timely manner.

Expenditures on the development of the social sphere made up 54.5 percent of total expenditures. A total of 15 trillion has been allocated to finance the areas of this sphere. soums, including preschool educational organizations - 1.4 trillion soums, secondary schools - 5.6 trillion soums, for health care - 3.7 trillion soums, for social benefits, material assistance and compensation, increasing the level of employment of the population - 1.5 trillion soums.

As part of the implementation of measures defined in decrees and decrees of the President in the field of mitigating the effects of the coronavirus pandemic and global crisis on the economy, 344 billion soums were allocated from the Anti-Crisis Fund. Also, in the reporting period, 2.7 trillion were directed to economic expenses. soums, for expenses on financing investments - 1.9 trillion soums.

As noted in the report, along with positive results, mistakes and shortcomings in the targeted use of budget funds were also made. In particular, in 1,096 of the verified 1,373 budget organizations, 39.9 billion soums were identified as financial errors, including 9 billion soums of shortage and misappropriation of cash and material assets, 30.9 billion soums of illegal expenses.

Members of the lower house of parliament also drew the attention of the heads of relevant ministries and departments to other tasks that must be considered in a pandemic in the implementation of revenues and expenditures of the state budget and state trust funds. Representatives of the people emphasized the need to further strengthen parliamentary oversight.

Following the meeting, the Legislative Chamber of the Oliy Majlis adopted an appropriate resolution on the report on the implementation of the State budget and the budgets of state trust funds for the first quarter of 2020.