Tashkent, Uzbekistan (UzDaily.com) -- President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting on 30 October to discuss the expected results of the State budget execution in the current year, the main macroeconomic indicators and the directions of fiscal policy for 2019.

At the meeting, it was noted that following the results of the current year, the State budget revenues are expected to be 74.5 trillion soums, expenses - 78.5 trillion soums, local budgets will have 5.5 trillion soums or 6 times more funds than last year.

Budget expenditures this year rose by 60 percent or 29 trillion soums compared to 2017. Of this amount, 5.6 trillion soums were used to finance the programs “Obod Qishloq”, “Obod mahalla”, “Yoshlar - kelajagimiz” and the construction of affordable housing. To provide young entrepreneurs with preferential loans and provide employment for the population, 700 billion soums were allocated to Microcredit Bank and more than 1 trillion soums to the People’s Bank, 4.5 trillion soums were allocated to increase our country’s defense capability.

The most important thing, along with an increase in the wages of public sector employees, pensions and benefits above the inflation rate, was the increase in wages of educators, teachers, science and culture workers from 30 to 100 percent.

The liberalization of monetary and pricing policies, the streamlining of mutual settlements in agriculture and the growth of capital investments had a positive effect on the increase in budget revenues.

Until the end of the year there are two more months. Therefore, it is necessary to use all reserves and prevent a possible budget deficit, Shavkat Mirziyoyev said.

The meeting noted that the steady growth of budget revenues next year, the historical changes introduced in the tax system will be of great help to the population and business.

In particular, as a result of the abolition of mandatory deductions from revenue from January 1, 2019, an additional 5.2 trillion soums of income will remain at the disposal of enterprises.

A reduction in the maximum personal income tax rate from 22 to 12 percent, a single social payment rate from 25 to 15 percent, and the abolition of the 8 percent insurance premium will lead to an increase in household income by 6.5 percent.

As a result of lowering corporate property tax rates from 5 to 2 percent, income tax from 14 to 12 percent, a single tax payment for small businesses from 5 to 4 percent, 2 trillion soums of additional funds will remain at the disposal of entrepreneurs. In general, the number of taxes and obligatory payments will be reduced from 19 to 15 types.

These breaks will make budgetary revenues a little more difficult. In this regard, the meeting gave instructions to reduce the deficit and increase budget revenues, in particular the implementation of systematic work on the legalization of the number of employees and wages.

It was instructed to submit in the near future to the Oliy Majlis a thoroughly elaborated Budget Statement for 2019 and a draft of a relevant law on amending tax policy.

Instructions are also given for the introduction of a simplified mechanism for paying value-added tax, inventory and optimization of existing benefits.

When discussing the expenditure side of the budget for 2019, the President noted that expenditures should be focused mainly on the social and economic sphere.

Next year we must continue the policy of raising wages, pensions and benefits from the budget not lower than the inflation rate. At that, the main attention should be paid to social workers with relatively low wage growth rates, including raising salaries of medical workers by 26.5 percent, workers of institutions of higher education and science - 1.5 times, the head of state said.

As noted at the meeting, it is planned to increase spending on social benefits by 20 percent, and the share of wages and equivalent payments in the State budget as a whole from 49 to 54 percent.

Attention is paid to the implementation of state programs. It was noted that it is necessary to attract foreign funds for this purpose on favorable terms, to form and include in the Investment Program for 2019 a specific list of objects to be repaired under the programs “Obod Qishloq” and “Obod mahalla”.

Instructions have been given on the targeted and effective use of budgetary funds, on further strengthening control in this area.

On issues discussed at the meeting, reports of responsible officials were heard.