To Boost In­come, Cre­ate Jobs

The Pres­i­dent of Uzbek­istan Shavkat Mirziy­oyev held a meet­ing on Oc­to­ber 30 on the im­ple­men­ta­tion of the na­tional bud­get in the cur­rent year, the main macroe­co­nomic in­di­ca­tors and the di­rec­tions of fis­cal pol­icy for 2019.

Uzbekistan Today (English) - - FRONT PAGE -

It was noted at the meet­ing that by the end of the cur­rent year, state bud­get rev­enues are ex­pected to be 74.5 tril­lion soums, ex­penses at 78.5 tril­lion soums, lo­cal bud­gets will have 5.5 tril­lion soums, or six times more funds than from last year.

Bud­get ex­pen­di­tures this year in­creased by 60%, 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 al­lo­cate con­ces­sional loans to young en­trepreneurs and pro­vide em­ploy­ment for the pop­u­la­tion, 700 bil­lion soums were al­lo­cated to Mi­cro­cre­d­it­bank and more than 1 tril­lion soums to the Peo­ple’s Bank, 4.5 tril­lion soums were al­lo­cated to in­crease our coun­try’s de­fense ca­pa­bil­i­ties.

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

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 swell 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 in­sisted.

The meet­ing par­tic­i­pants noted that the steady growth in 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.

Re­duc­ing the max­i­mum per­sonal in­come tax rate from 22% to 12%, the uni­fied so­cial pay­ment rate from 25% to 15%, as well as the abo­li­tion of the 8% in­sur­ance pre­mium will lead to an in­crease in house­hold in­come by 6.5%.

As a re­sult of low­er­ing cor­po­rate prop­erty tax rates from 5% to 2%, in­come tax from 14% to 12%, sin­gle tax pay­ment for small busi­nesses from 5% to 4%, 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 par­tic­i­pants re­ceived instructions to re­duce the deficit and in­crease bud­get rev­enues, in par­tic­u­lar, to carry out sys­tem­atic work on le­gal­iz­ing the num­ber of em­ploy­ees and wages.

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

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

When dis­cussing the ex­pen­di­ture as­pect of the bud­get for 2019, the Pres­i­dent noted that spend­ing should be fo­cused mainly on the so­cial and eco­nomic spheres.

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

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

At­ten­tion is paid to the im­ple­men­ta­tion of state pro­grams. It was stressed 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 fa­cil­i­ties to be re­paired un­der the pro­grams “Obod Qishloq” and “Obod Ma­halla”.

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