SENATE APPROVES STATE BUDGET OF UZBEKISTAN FOR 2017

The eighth plenary session of Senate of Oliy Majlis of the Republic of Uzbekistan took place in Tashkent on 13 December 2016. Invited members of the Cabinet of Ministers, heads of ministries and departments, representatives of other organizations and media attended it.

The senators started their work with consideration of the State budget of Uzbekistan, budgets of state targeted funds and major directions of tax and budget policy for 2017. The State budget of Uzbekistan, budgets of state targeted funds and major directions of tax and budget policy for 2017 were developed based on the objectives of maintaining macroeconomic stability and sustainable economic growth. In particular, GDP growth is projected at 7.8 percent, industrial production —6.9 percent, agricultural production – 6.2 percent, volume of investments – 9.6 percent.

The main financial document of the country draws particular attention to active investment policy aimed at deep structural reforms and the development of engineering, transport infrastructure and the improvement of intergovernmental relations by increasing the revenue base of the regions.

Main directions of tax policy involve a further reduction of the tax burden on the economy as a whole, from 20.2 percent in the current year to 18.9 percent of gross domestic product, improving tax administration by ensuring transparency, as well as the full support of small business and private entrepreneurship entities.

In order to ensure the stability of the tax system it is proposed to retain the rates of major taxes and other obligatory payments (income tax, tax on improvement and development of social infrastructure, single tax payment, value added tax and tax on incomes of physical persons, the uniform social payment, etc.).

The budgetary policy of the country remains social oriented, which provides a further increase in income and standard of living of the population by raising wages of employees of budget organizations, pensions, allowances and stipends in size, outstripping inflation, which will boost the purchasing power of the population. Social spending in 2017 will amount to 59.7 percent of all state budget expenditures. The Senate adopted a corresponding resolution on approval of the State budget of the Republic of Uzbekistan for 2017.

Further, the senators considered the Law "On amendments and additions to some legislative acts of Uzbekistan in connection with adoption of main directions of tax and budget policy for 2017". The purpose of this legal act is to ensure the efficiency of implementation of main directions of tax and budget policy for 2017, as well as bringing the provisions of the legislation with the Budget message of the government taking into account the priorities of socio-economic reforms. The senators approved the law.

UzReport