The information service of the Legislative Chamber said that Prime Minister of Uzbekistan Shavkat Mirziyayev and members of the Uzbek Government participated at the session, which considered macroeconomic figures, main directions of tax and budget policies and draft State Budget for 2013.

During the session, MPs noted that the forecasted growth of gross domestic product (GDP) will make up 8% in 2013, industrial production – 8.4%, agriculture output – 6%, capital investments – 9.3%.

In the result of implementation of proposed measures on tax-budget policies for 2013, income of the State Budget will make up 21.3% to GDP, expenses – 22.3% to GDP. Deficit of the State Budget will make up 1% to GDP.

It was said that tax and budget policies of Uzbekistan are directed at decreasing tax burden, improving investment and business climate, stimulating modernization of economy, supporting business entities, especially small and private entrepreneurship, improving tax administration, as well as ensuring macroeconomic balance and improving well-being of population.

Successful implementation of measures of tax policy will allow to decrease tax burden to economy by 0.3% to GDP. As one of measures on cutting tax burden, it is offered to decrease minimal rate of income tax for individuals on first scale from 9% to 8%, which will allow population to save about 186 billion soums.

MPs stated that intangible assets (patents, licenses, software, copyrights and others) will be removed from taxable base, which should stimulate for introduction of innovation to enterprises.

It was said that the state budget for 2013 is socially oriented and directed at increasing income and well-being of population, strengthening material-technical base and equipment of educational and health institutions, as well as implementing active policy. It was stated that 59% of all expenses of the State Budget will be directed to social sector.

The State Budget allocated funds for construction and reconstruction of three infectious hospitals for 130 beds, five TB hospitals for 400 bets, as well as 54 district medical establishments for 5,800 visitors and 7,600 patients. Within the Health-3 project, financed due to loans of international financial institutions, it is planned to equip 150 district central hospitals with 96 types of modern equipment.

It is also planned to repair and reconstruct 313 general schools and 228 academic lyceums due to resources of off-budget Fund on reconstruction, capital repair and equipment of educational and medical establishment. Over 1,500 educational establishment and 700 academic lyceums and colleges will be equipped with modern educational inventories, computers and educational laboratories.

It is planned to construct, repair and equip 54 children musical and art schools, as well as 137 sport halls and 25 children sport objects.

The budget will also issue 2.8 trillion soums to financial support of economy, which is 22% more compared to approved parameter for 2012. It is planned to allocate over 1.4 trillion soums to provide water to agriculture producers. Fund for Reclamation of Irrigated Lands will provide 227 billion soums to finance land reclamation works in 2013. Overall, over 300,000 hectares of land will undergo land reclamation process.

The State Budget will increase investments by 23% to reconstruction of irrigation establishment and improvement of water supply to rural areas and improvement of appearance of settlements.

The expenses to repair roads of general use and rural roads will rose by 1.69 times compared to approved parameters for 2012. At the same time, Republican Road Fund will issue 661 billion soums to improve road of international use. It is also planned to construction bridges, overpasses, 526 km of roads.

In order to improve habitation conditions of rural population, it is planned to direct over 1 trillion soums to construction of 8,510 modern houses in 326 blocks in 2013 within the programme on construction of individual houses in rural area on standard projects.

Expenses to improvement of water supply to population, in particular in rural areas, will grow twice and it is planned to lay 654 km of water supply pipes.

After discussions, the Legislative Chamber of Oliy Majlis of Uzbekistan approved the State Budget of Uzbekistan for 2013 and adopted a corresponding resolution.