Budget revenues reach about 51 trillion soums
Tashkent, Uzbekistan (UzDaily.com) -- The Senate of the Oliy Majlis of the Republic of Uzbekistan discussed a report of the Cabinet of Ministers of the Republic of Uzbekistan on the implementation in the second quarter of 2019 of the State program “Year of Active Investment and Social Development”.
It was noted that the results of the analysis and study carried out by the Senate showed that in the first half of the current year, the implementation of 139 points of the Program was envisaged. Of these, 101 points were completed and 22 points were completed in advance. Currently, the number of completed points is 123.
As a result of large-scale reforms carried out in the reporting period, gross domestic product grew by 5.8% compared to the same period of last year. Budget revenues made up about 51 trillion soums or 109% of the forecast. At the disposal of local budgets remained over 2.6 trillion soums or 1.5 times more compared to the same period last year.
As a result of the ongoing reforms to improve the investment environment in the country and strengthen the attraction of foreign direct investment in the first half of this year, the share of direct investment in the capital increased 2.5 times and reached US$1.7 billion.
The Prime Minister’s Receptions, created to address the problems of local entrepreneurs and investors, act as effective institutions aimed at further improving the investment environment. In order to strengthen the image of the Republic of Uzbekistan on the world stage and improve the country’s position in international ratings, responsible ministries and departments have been identified.
Despite the comprehensive practical work carried out in the economic sphere over the past period, aimed at improving the investment environment, there are serious shortcomings and problems in improving investment activities.
So, during meetings with foreign investors and local entrepreneurs, it was especially noted that the instability of legislative acts, amendments and additions regularly introduced into existing legal documents, and the presence of conflicting norms have a negative impact on the activities of foreign and local investors.
This situation arises as a result of the fact that in the legislative process the elements of the modern “smart regulation” model are not widely used, the system of mandatory assessment of the impact of draft normative legal acts has not been introduced.
The instructions of the President of the country to improve the laws governing investment activities in the country have not been fully implemented. In particular, the order on the development and introduction of the draft law “On Investments and Investment Activities”, aimed at guaranteeing the rights of foreign investors, has not yet been fulfilled.
In addition, the Program item on improving the legal foundations of the activity of free economic and small industrial zones has not yet been implemented. The draft Law of the Republic of Uzbekistan “On Special Free Economic Zones”, defined by this clause, has not been submitted to parliament to this day.
For entrepreneurs engaged in investment activities, a serious problem is obtaining a loan. Lack of resources in commercial banks, high rates, and the presence of bureaucratic barriers when considering loan applications, in turn, negatively affect the fulfillment by entrepreneurs of their export duties.
As a result, in the first half of this year, the number of investment projects provided for by the Program is 9088, their total cost is 60.3 trillion soums, the creation of 172488 jobs is provided. However, in the first half of the year, projects worth 13.6 trillion soums were implemented (23%) on 3332 projects (37%) and only 38,252 jobs (22%) were created.
In the regions, the level of implementation of investment projects in the first half of the year was 44%. At the same time, the cities of Tashkent (27%), Tashkent (31%) and Kashkadarya (37%) regions are the lagging regions.
The work of ministries and departments to improve the position of the republic in international ratings and indices is unsatisfactory.
The Cabinet of Ministers is recommended to develop specific measures to ensure the rigorous implementation of timely unfulfilled items of the Program, as well as to eliminate problems that adversely affect the investment environment that were identified by the Senate of the Oliy Majlis during the study in the regions and areas. Following the discussion, a corresponding resolution of the Senate was adopted.