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.
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”.