The session noted that adopted measures on systematic and targeted implementation of important priorities of economic programmes for 2012, determined by the President of Uzbekistan Islam Karimov at the session of the Government on 19 January 2012, ensure achievement of eyed macroeconomic figures and successful implementation of parameters of the State Budget.

It was said that lessons of continuing crisis signs in several developed countries, related with huge public debts and unbalanced state budget, once again shows that Uzbekistan selected correct and effective tax and budget policies. In last several years, State Budget has been executed with surplus, which is one of the important signs of effectiveness of tax and budget policy, sustainable payment balance of the country and lays firm foundation for keeping macroeconomic stability.

Within the discussions, the participants of the session analyzed and supported proposals of key economic and financial bodies on forecasts of macroeconomic figures for 2013, which envisages to keep sustainable growth of economy, the volume of goods production in industry and control inflation level.

At the session, the participants considered a concept of tax and budget policy, as well as State Budget of Uzbekistan for 2013, which envisage high and sustainable economic growth, further strengthening of macroeconomic stability, gradual development of social sector, growth of population life standards through raising their salaries and providing social support.

It was noted that tax policy in 2013, as in previous years, will be directed at further decreasing tax burden to business entities and population, simplifying taxation system, strengthening income part of local budgets and improving tax administration.

As one of measures for further decreasing tax burden, it is planned to cut minimal rate of income tax for individuals on first scale from 9% to 8%, which will allow population to keep about 186 billion soums (over US$95.25 million). It said that over 120 billion soums will be additional income for about 2.7 million people, who receive income at the size less than 5 minimal sizes of salary.

At the same time, intangible assets, like patents, licenses, software, copyrights and others, will be excluded from object of property tax of legal entities, which will stimulate to introduction of innovative goods at enterprises. Implementation of these and other stimulating measures, laid to tax policy concept, will allow to cut tax burden to economy from expected 21.6% to 21.3% in 2013.

Main direction of budget policy and project of the State Budget for 2013 will focus to social support of expenses, further growth of income level and well-being of population, strengthening material-technical base and equipment of educational and healthcare, as well as active investment policy. Over 59% of all expenses will be directed to finance social sector.

It is planned to carry out capital repair and constriction of 313 general schools and 228 academic lyceums and professional colleges due to off-budget Fund for Reconstruction, Capital Repair and Equipment of Educational and Medical Establishments. Over 1,500 general schools and 700 academic lyceums and professional colleges will be equiped with modern equipment, computers and labs.

In upcoming year, it is planned to construct, repair and equip 54 children music and art school, as well as 137 sport halls and 25 children sport objects.

In 2013, it is planned to construct and reconstruct 3 infection hospitals for 130 places, five TB clinics for 400 places, as well as 54 district medical establishments, which can accept 5,800 visitors and 7,600 patients. Within the project “Health-3”, financed by loan of the World Bank, it is planned to equip 150 district central hospitals with 96 modern equipment, including X-ray, digital ultrasonic scanner, biochemical analyzers, etc.

Some 2.8 trillion soums will be allocated to finance support of economy, which will grow by 22% compared to forecast for 2012. Over 1.4 trillion soums will be allocated to ensure water supply to agriculture producers.

Expenses to programme on reconstruction, repair and cleaning of land-reclamation networks through Fund of land-reclamation of irrigated lands will make up 227.5 billion soums, which will improve conditions of 300 hectares of irrigated lands.

In line with the draft state budget for 2013, the expanses for repair of roads for general use and in rural areas will increase 1.69 times compared to forecast for 2012.

It is also planned to allocate 661 billion soums from Republican Road Fund for reconstruction of roads of international and republican importance in 2013.

It is planned to construct 526 km of roads, which will meet international standards, as well as several bridges and overpasses.

Within the programme on construction of individual houses in rural areas on standard projects, it is planned to construct 8,510 modern houses at 326 rural areas. Some 1 trillion soums will be issued to finance construction of houses.

Due to increasing expenses for improving quality of water supply to population, especially in rural areas, it is planned to lay 654 km of water pipelines. The expenses to this purpose will grow twice compared to forecast of 2012.

Overall, it was noted that centralized investments will grow by 23% compared to forecast for 2012, which will allow to continue reconstruction of irrigation establishment, improve water supply to rural population and architecture look of settlements of Uzbekistan.

The session also considered a draft programme for creation of jobs and employment of population for 2013. MPs and Senators of Oliy Majlis of Uzbekistan participated at the discussions.

The draft programme envisaged creation 973,000 jobs in 2013, of which 485,500 jobs will be created by small and private businesses, 218,400 jobs – due to expansion of outwork, 268,800 jobs – due to modernization of capacities, development of production and social infrastructure, and agriculture. Special attention will be paid to employment of college graduates.

At the session, it was noted that heads of administration, economic bodies, enterprises, ministries and departments will be personally responsible for full implementation of programme on employment and raising income of population.

In the result of the meeting, the Government adopted decision to approve forecast of macroeconomic figures, concept of tax and budget policy, draft State budget and programme for creation of jobs and ensuring employment for 2013. The documents will be directed to parliament for consideration.