Tashkent, Uzbekistan (UzDaily.com) -- The Senate of the Oliy Majlis of the Republic of Uzbekistan approved a state budget of Uzbekistan, budgets of state trust funds and the main directions of tax and budget policy for 2019.

In 2019, state budget revenues are projected at 102.6 trillion soums, which is 38% higher compared to 2018.

The total expenditures of the State budget will amount to 107.1 trillion soums or 36.4% more than in the current year.

It is expected that social spending will reach 57.8 trillion soums or 54% of all expenses (growth compared to 2018 - 34.4%). Expenditures on education will increase by 25.5% compared with the current year and amount to 28.4 trillion soums or 49% of all expenses.

The cost of health care will grow by 30.5% compared to 2018 to 12.1 trillion soums or 11.3% of all expenses.

Expenditures on social benefits, on material assistance to low-income families and compensation payments will amount to 5.2 trillion soums, which is 61.8% more than in 2018.

In the framework of the state programs “Obod Qishloq” and “Obod Mahalla”, 6.3 trillion soums will be allocated to improve living conditions in 478 localities from all sources of financing. sums.

The state budget deficit for 2019 is projected at 1.1% of GDP.

In accordance with the Concept of Improving the Tax Policy of the Republic of Uzbekistan in 2019, it is planned to reduce the corporate income tax rate from 14 to 12%, for commercial banks - from 22 to 20%. The tax burden on the wage fund is also reduced by introducing a uniform tax rate for individuals on all individuals at a rate of 12%, of which 0.1% goes to individual savings pension accounts.

In addition, it envisages abolition of insurance contributions of citizens in the extra-budgetary Pension Fund, withheld from citizens’ income in the form of wages.

In the State budget for the coming year, special attention is paid to the issues of improving the system of remuneration of public sector employees. In the coming year, it was proposed to increase wages, pensions, social benefits and scholarships every six months in an amount not lower than the inflation rate of the previous year. From 1 January 2019, it is envisaged to determine the size of social benefits in absolute amount.

Following the discussion, a resolution of the Senate of Oliy Majlis on the State Budget of the Republic of Uzbekistan, budgets of state trust funds and the main directions of tax and budget policy for 2019 was adopted.

Senators also reviewed and approved the Law of the Republic of Uzbekistan “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in connection with the adoption of the main directions of the tax and budget policy for 2019”.