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On the 10th plenary session of the Senate of the Oliy Majlis of the Republic of Uzbekistan

The tenth plenary session of the Senate of the Oliy Majlis continued its work on 6 December 2012 in Tashkent.

The second day of the plenary session of senators started with considering and approving State Budget of the Republic of Uzbekistan for 2013. It was noted that the main financial document of the country is aimed at ensuring macroeconomic stability and high growth rates of the economy, forming diversified and competitive economy, further increasing wellbeing and life standards of the population.

The State Budget of the Republic of Uzbekistan for 2013 is drafted taking into account the tasks set forth in the Concept of further deepening democractic reforms and forming of civil society in the country, as well as implementation of main priorities of the program of social-economic development of the country, as defined by President of the Republic of Uzbekistan Islam Karimov at the government meeting in January 19, 2012.

Senators highlighted that the fiscal policy in 2013, as in previous years, will be aimed at further reducing the tax burden on business entities and income of the population, creating favorable conditions for further modernization and renovating of the country's economy by simplifying the tax system, strengthening tax administration measures, prevention of tax avoidance.

In order to increase the real incomes of the population in the next year the minimum tax rate on personal income will be reduced by one percent. As a result, individuals will have over 186 billion soums remaining in their possession additionally.

To reduce the tax burden on individuals engaged in entrepreneurial activities, a fixed tax, calculated in multiples of the minimum wage at the beginning of the year (regardless of changes in the minimum wage in the year) will be introduced.

In 2013 implementation of measures, aimed at gradual increase of salaries of employees of budgetary institutions, pensions, stipends and social allowances will continue, which, in turn, will create conditions for improving the quality of life and income. In general, 59.2 percent of 2013 budget expenditure is expected to be allocated to the social sphere. On health care only 14.6 percent of the budget funds will be spent. Furthermore, via off-budget fund of reconstruction, refurbishment and equipping of educational and health facilities 204 billion soums will be allocated to reconstruct 217 and repair 164 schools, 129 billion soums will be directed for construction, renovation and repair of 159 academic lyceums and professional college in 2013.

312 billion soums is to be allocated from the Fund in 2013 on the program of construction, reconstruction and capital repair of health facilities, as well as to equip and to upgrade health system with the latest laboratory, diagnostic and medical equipment, computer technologies and other medical equipment, specialized furniture. In particular, the fund will finance construction and renovation of 54 community health organizations, regional diversified medical centers, 5 TB dispensaries for 400 patients, 32 rural medical units.

Fiscal policy also includes measures to improve the efficiency of budget funds, increase targeted social assistance to the population and further reform the system of interbudgetary relations, to strengthen the independence and commitment of local authorities to expand the revenue base and the efficiency of resource use.

The senators stressed that the main directions of tax and fiscal policy as well as the parameters of the State Budget of Uzbekistan for 2013 are broadly consistent with the priority directions of social and economic development, strategic program of further deepening of reforms in all spheres of society, increasing the welfare of the people. Following the discussion the senators approved the State Budget of the Republic of Uzbekistan in 2013.

Senators also considered the Law of the Republic of Uzbekistan "On introduction of amendments and additions to some legislative acts of the Republic of Uzbekistan in connection with the adoption of key tax and budget policy for 2013, as well as reducing the frequency of tax filing." The law has been prepared in accordance with the concept of tax policy in 2013, and the Decree of the President of the Republic of Uzbekistan "On measures to drastically reduce the statistical, tax, financial reporting, licensed activities and permissive procedures" from 16 July 2012 and "On Measures to further radical improvement of the business environment and to provide greater freedom of entrepreneurship" from 18 July 2012.

According to the senators, the adoption of this law will create favorable conditions for business activity by reducing and simplifying reporting and the presentation order, improving tax administration and further reducing tax burden on businesses.

Later on, senators considered the appointment of heads of diplomatic missions of the Republic of Uzbekistan in a number of foreign countries, approving changes in the composition of the Supreme Court of the Republic of Uzbekistan, as well as other issues related to the competence of the Senate of the Republic of Uzbekistan.

During the two-day session of the Senate 20 issues, including 8 laws, aimed at gradual and consistent deepening of democratic reforms and formation of civil society, were considered. Implementation of the taken decisions will be a powerful factor in improving living standards, stability and prosperity in the country.

On this the tenth plenary session of the Senate completed its work.

Press service of the Senate of the Republic of Uzbekistan

Published: 07.12.2012 20:28:11
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