Tashkent, Uzbekistan (UzDaily.com) - The President of Uzbekistan Shavkat Mirziyoyev signed a Law “On the State Budget of the Republic of Uzbekistan for 2020” and the related amendments to the legislation on 9 December 2019.

This kind of document is adopted in Uzbekistan for the first time. It allows to increase the budgetary responsibility of government sectors at all levels, strengthen budgetary discipline, reduce bureaucracy.

The law regulates all the nuances of the budget process.

Firstly, budgetary powers are distributed between the Oliy Majlis, the Cabinet of Ministers, regional and local bodies of representative power, as well as the Ministry of Finance. The procedure for the use, revision and amendment of the appropriations allocated from the republican budget has been determined.

Secondly, the parameters of the Consolidated Budget are approved - the appendices to the law indicate the forecasts of revenues and expenses of budgets of all levels, budgets of state trust funds and the Fund for Reconstruction and Development, as well as rates:

- excise tax on excisable goods (services) produced (provided) in Uzbekistan;

- land tax from legal entities and individuals;

- land tax levied on horticultural agricultural enterprises for lands occupied by horticultural products (vegetables, melons, fruits, vineyards);

- tax for the use of water resources;

- minimum rental rates for individuals leasing property;

- fixed personal income tax amounts for individual entrepreneurs (since the beginning of 2020, individual entrepreneurs have the right to choose the procedure for paying personal income tax);

- marginal rates of local fees;

- fees for the purchase and (or) temporary import into Uzbekistan of vehicles paid by their owners (users) when registering with the internal affairs bodies, and fees for entry into the territory and transit through the territory of the country of motor vehicles of foreign countries.

It is envisaged the formation of a “safety cushion” - reserve funds of the Cabinet of Ministers (731 billion soums) and regional authorities (1.5% of the total expenses of the respective budgets), from which urgent and unforeseen expenses can be financed when budgeting the budget system and the necessary measures case of socio-economic instability.

An action plan has been identified to guarantee the stability of the budget system. If, according to the results of 6 months, the forecast of budget revenues of the budget system is not fulfilled and there are no sufficient reasons for their receipt by the end of the financial year, expenses will be reduced.

The maximum amount of external borrowing on behalf of the state (Government) or under state guarantee in 2020 is US$4 billion, of which development (expenses) is US$1.5 billion.

Fourth, a new procedure has been established for the consideration and adoption of the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent, the budgets of districts and cities, especially the formation of their revenue and expenses, including the use of additional sources.

Fifth, transparency in the execution of the country’s consolidated budget is ensured. In particular, first-level budget funds managers (their list is approved by the Cabinet of Ministers), state trust funds, the Reconstruction and Development Fund for each quarter (until the 25th day of the first month of the next quarter) should publish on their websites information about:

- distribution of budget funds in the context of subordinate budget organizations;

- financial statements;

- implementation of projects carried out at the expense of capital investments;

- held competitions (tenders) and public procurements.

In addition, the authorized departments obligated to post on their official websites:

- a list of objects included in the Investment Program and financed from the state budget, information on the cost and implementation of projects (Ministry of Economic Development and Trade and the corresponding managers of budget funds - on an ongoing basis);

- a list of tax and customs benefits, information on the amounts of tax and customs benefits provided by taxpayers (STC and SCC - based on the results of each quarter);

- information on the work plans for the financial year in the first month of the financial year and the financial violations and positive results identified by the results of control measures (state financial control bodies - based on the results of each quarter);

- a list of purchased goods and services, facilities at which construction, reconstruction and repair work is being carried out at the expense of additional budgetary sources, as well as information on the financing of construction and repair work (Council of Ministers of Karakalpakstan, khokimiyats of regions and the city of Tashkent, districts and cities).

Reporting mechanisms are being implemented on the implementation of the State Budget, allocated budget funds and the results achieved.

In addition, a package of amendments to the Budget Code, the Laws “On Regulations” was adopted

In addition, a package of amendments to the Budget Code, the Laws “On the Regulations of the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan”, “On the Rules of the Senate of the Oliy Majlis of the Republic of Uzbekistan” and “On Parliamentary Control”, which reflect all the above innovations and bring the legislation into line with the law, have been adopted about the state budget.

The laws were published in the newspaper Narodnoe Slovo and entered into force on 10 December 2019.