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Ministry of Foreign Affairs of the Republic of Uzbekistan

Ministry of Foreign Affairs of the Republic of Uzbekistan
Virtual reception the President of the Republic of Uzbekistan Visa of the Republic of Uzbekistan Consular Missions of Uzbekistan overseas

Topical issues

6 June 2018

Full use of available opportunities for ensuring revenues to local budgets and price stability is an important task

On June 5, 2018, a meeting under the chairmanship of the President of the Republic of Uzbekistan Shavkat Mirziyoyev was held on issues of increasing revenues to local budgets and ensuring price stability by increasing production, enhancing personal responsibility of heads of executive bodies, tax and financial departments at places for preventing inflation.

The meeting was attended by the Prime Minister and his deputies, heads of ministries and departments, companies, business associations and banks, as well as the Chairman of the Jokargy Kenes of the Republic of Karakalpakstan, khokims of the regions and the city of Tashkent via videoconferencing.

In accordance with the Action Strategy implemented in the country, consistent reforms are being carried out on expanding the scale of modernization and diversification of the economy, reducing imbalance in socio-economic state of the regions through accelerated recovery of lagging districts and cities. Thus, the organization of new industrial enterprises and small industrial zones, attraction of funds from large business associations, bank loans and foreign investment are important factors in increasing the revenue side of local budgets in subvention-dependent cities and districts, development of manufacturing industries.

The Decree of the President of the Republic of Uzbekistan “On measures of expanding the powers of state authorities at places in forming local budgets” of June 7, 2017 contributes to stable financing of programs for integrated development of territories, raising real incomes on this basis, the level and quality of life of the population.

At the meeting, the current state of ongoing activities on increasing additional revenues to the budget and ensuring stable level of inflation was analyzed in a critical spirit, the most important tasks in this direction were identified.

* * *

During the trips of the President of the country to the regions, measures were identified on providing additional tax revenues to the budget in the amount of 5.3 trillion soums, or 12 percent more than forecasted due to the use of available reserves and opportunities at places. As a result, over the past 5 months of this year, more than 2.7 trillion soums have been received, which exceeds the forecast by 16 percent.

At the same time, the analysis shows that local khokimiyats, financial and tax authorities do not fully use reserves for additional tax revenues to the budget.

This is clearly evidenced by the fact that over the past 5 months of this year, 60 percent of taxes, as before, were received from 171 large enterprises.

For example, in the Republic of Karakalpakstan, 50 percent of all tax revenues is provided at the expense of Uz-Kor Gas and Ustyurt Gas enterprises, in Navoi region 75 percent of taxes were received from Navoi Mining and Metallurgical Combinat.

At the meeting that was chaired by the President of the Republic of Uzbekistan Shavkat Mirziyoyev, on June 5, absolutely unsatisfactory work in this direction in the city of Tashkent and Namangan region was seriously criticized.

For example, the analysis of revenues from market trading revealed that this indicator has decreased by 30 percent in Almazar, 7 percent in Sergeli, 4 percent in Yakkasaray, 3 percent in Yunusabad districts of Tashkent. The same deplorable situation in other districts was emphasized at the meeting.

* * *

At the meeting on issues of increasing revenues to local budgets and ensuring price stability by increasing production, it was noted that there is a lack of sufficient control over revenue from parking lots. As a result, local budgets did not receive 18 billion soums.

Over the past 5 months, the number of taxes from trade and public catering enterprises has decreased in Naryn and Namangan districts of Namangan region.

Tax reporting in the region has not been thoroughly analyzed, appropriate measures have not been taken, as a result, almost 20 billion soums of taxes have not been collected.

The study and calculations showed that all regions have such unutilized reserves, in general, it is possible to achieve additional tax revenues at the amount of 8.1 trillion soums this year in excess of forecast and bring the total amount of taxes to the budget up to 50.2 trillion soums.

At the meeting, responsible ministries and departments were given specific instructions on speedy elimination of shortcomings in the field, providing additional tax revenues at the amount of 8.1 trillion soums in two weeks, developing and approving daily schedules and a plan of specific measures for each region and district. The need for organizing and establishing effective activities of headquarters on attracting additional revenues to the budget in each region, city and district was also noted.

* * *

At the meeting that was held on June 5 under the chairmanship of President Shavkat Mirziyoyev, the need for ensuring the receipt of 772 billion sums to the budget through compulsory debts collection, sale of property converted to state revenue, as well as establishment of systematic activity on strengthening control in this direction was noted.

The economic indicators achieved in the country over the past five months were critically analyzed. Inflation for this period amounted to 6.6 percent and did not exceed the forecast, but the rise in prices amounted to 7.4 percent in Tashkent, 7.3 percent in Andijan region, and 7.1 percent in Karakalpakstan. The reasons for this were indicated, deficiencies in management were noted.

As it is known, today special attention in the regions is paid to a significant increase in harvesting of fruit and vegetable, livestock, poultry, fish products and honey. For this purpose, entrepreneurs and farmers are provided with necessary amount of loans, land for fodder preparation, all necessary benefits are provided. However, unfortunately, concrete practical results from this attention given at the state level are not felt. This, in turn, negatively affects the preservation of price stability in the domestic market.

At the meeting, the main reasons for the rise in price of meat in the markets were considered in detail. Among them is the lack of feed, meal and husk, the fact that livestock feed is sold much more expensive than the established prices was criticized.

Unfortunately, there is non-observance of trading culture, violation of criteria and requirements in this sphere, which is also a serious reason for artificial overstating of prices in the markets. Instead of preventing such facts, managers and responsible persons of markets themselves are engaged in extortion.

* * *

Another important issue was considered at the meeting devoted to issues of increasing revenues to local budgets and ensuring price stability by increasing production. As it is known, a special Fund was created last year for preventing growth of prices for basic food products in domestic market. Due to unsatisfactory organization of its activities, sugar, vegetable oil, potatoes and chicken have been imported into the country for 155 million dollars to date. Impact of the Fund on price stabilization is not noticeable. Nothing can justify the fact that the Fund has become a credit institution serving the interests of individual entrepreneurs, noted the Head of the state.

Taking into account critical comments, the Prosecutor General’s Office has been instructed to conduct a thorough audit of activities of the Fund.

The Head of the state noted with regret the growth of prices for construction materials from year to year, which are extremely important for people’s prosperous life. Attention of relevant managers and responsible persons was drawn to the fact that this has a negative impact on inflation level. Prices for building materials compared with the beginning of the year increased by 16 percent in the country, particularly, by 23 percent in Tashkent region, by 20 percent in Surkhandarya region and by 19 percent in Khorezm region.

Reduction of acreage for re-crops by 238 thousand hectares, taking into account lack of water this year, should not be a reason for reducing production volume and rising prices. Therefore, due to full re-sowing of remaining 680 thousand hectares and increasing productivity, we should get a harvest in a sufficient amount both for domestic market and for export. If we use water in an orderly, reasonable way, it will be enough for all crops, – said President Shavkat Mirziyoyev.

To eliminate these problems, instructions were given on organizing a republican headquarters and a working group on repeated sowing. Appropriate tasks on re-growing crops, caring for them, harvesting crop without losses, establishment of organized work for re-sowing of the areas freed from grain were identified.

* * *

On June 5, at the meeting held under the chairmanship of the President of the Republic of Uzbekistan Shavkat Mirziyoyev, a need for taking measures on creating stocks of agricultural products, concluding agreements with farmers for supply of secondary crops, timely allocation of advance funds was noted.

Specific tasks were also outlined on prevention of allocation of water for irrigation of areas freed from grains, before plowing.

At the meeting, relevant managers and responsible persons were given instructions on development of programs for development of livestock, poultry and fish farming, formation of a rational food supply base for these industries in 2018-2021, identifying the need for basic food products for each region, determining appropriate organizational measures for their import through a special Fund, taking effective measures on ensuring stable prices in markets.

Relevant decisions were taken on the issues discussed at the meeting, the need for establishing strict control and regularly informing about their implementation was noted.

Author: UzA
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