Tashkent, Uzbekistan (UzDaily.com) -- On 20 May 2021, an expanded meeting of the Committee of the Legislative Chamber of the Oliy Majlis on budget and economic reforms was held. The deputies first discussed the state of projects financed by the state external debt.

As noted at the event, today the state debt of Uzbekistan has reached US$23.3 billion, or 40 percent of GDP. In particular, government debt accounts for US$21 billion or 36.5 percent of GDP. Based on world experience, these indicators of external debt are not considered dangerous for Uzbekistan.

To ensure that external debt funds are used for the benefit of the people, it is important for what purposes and projects they are directed. Based on this, the deputies paid special attention to the issue of ensuring the economic efficiency and effectiveness of each project, achieving the intended targets and increasing the responsibility of the project initiators when returning borrowed funds. In this regard, the responsible ministries and departments provided information on the allowed shortcomings in the projects.

At the meeting, the deputies heard the information of the Accounts Chamber and the report of the Ministry of Investment and Foreign Trade on the investment project "Comprehensive development of medium-sized cities", which is being implemented in 2019-2021 at the expense of a loan in the amount of US$100.0 million from the World Bank and state budget funds in the amount of US$24.1 million.

According to the Accounts Chamber, during the implementation of the project as of 1 March 2021, borrowed funds in the amount of 944.8 thousand dollars or at least one percent of the total allocated funds were attracted. At the same time, due to ineffective project management and improper organization of work, financial errors and shortcomings in the amount of 439.7 thousand dollars were revealed in 23 cases.

In particular, 67 out of 128 measures of the “road map” were not implemented. According to the decree of the President of the Republic of Uzbekistan dated January 9, 2020, within the framework of the project, despite the fact that in 2020 the development of debt funds for 5 million dollars is envisaged, 789.3 thousand dollars or 6.3 times less were spent.

Within the framework of the project, practical work was not carried out on the restoration of the Amir Palace and cultural heritage buildings in the city of Kogon, the supply of equipment for organizing the tourist bus route Kogon-Bukhara, reconstruction of the water supply and sewerage system in the cities of Kogon and Yangiyul. Such cases caused serious disagreement among the deputies. Proposals have been made for their timely and effective implementation.

During the meeting, the deputies criticized the cases identified in the investment project "Comprehensive Development of Medium Cities", implemented at the expense of external debt.

At the event, the deputies heard reports from the khokimiyats of the Chortok district, the cities of Kogon and Yangiyul on the implementation of the project "Integrated development of medium-sized cities".

Following the meeting, recommendations were given to the relevant ministries to eliminate the identified deficiencies, take measures to prevent errors and gaps in all programs implemented within the project, strengthen financial control over projects and programs, develop proposals to eliminate existing systemic deficiencies.

It was noted that the deputies of the Legislative Chamber will strengthen deputy and parliamentary control over this issue, and taking into account the opinions expressed at the meeting, a corresponding decision of the committee was made.