This report was previously discussed in the committees of the Legislative Chamber of the Oliy Majlis with participation of representatives of the Cabinet of Ministers, ministries and departments, NGOs, experts of the sphere, the mass media. Extensive analytical work was carried out in factions of political parties, which allowed deputies to develop their principle positions on the progress of execution of the main financial document of the country in the interests of the electorate and program goals.

The report on the execution of the State Budget of the Republic of Uzbekistan and budgets of the state trust funds for the first half of 2015 was made by the Deputy Minister of Finance of the Republic of Uzbekistan Mubin Mirzaev.

It was noted that the implementation of the most important tasks and priorities of economic program for 2015, determined by the President of the Republic of Uzbekistan at the meeting of the government on January 16 of this year, as well as continuation of implementing medium-term programs of developing industries and spheres of the economy provided positive dynamics of the main macroeconomic parameters and creation of a solid foundation for further balanced development of industries and sectors of the economy in the first half of the year.

Thus, in the first half of this year, the growth in gross domestic product (GDP) amounted 8.1 percent, the volume of industrial production also rose by 8.1 percent. The inflation rate did not exceed the forecast parameters. At the same time further strengthening of macroeconomic stability was accompanied by a positive trade balance.

Implementation of well thought-out, balanced monetary and fiscal policy ensured execution of revenues of the State budget with respect to the forecast parameters by 0.3 percent, accounting for 23.6 percent to GDP. The State budget expenditures amounted 23.4 percent to GDP, which allowed to fulfill the State Budget of the Republic of Uzbekistan with a surplus – 0.2 percent to GDP).

Social orientation of fiscal policy is maintaining: 59.2 percent of its expenditure part was directed to the social sphere development, the press service of the Legislative Chamber said.

In the course of a full discussion of the report on the execution of the State budget and budgets of the state trust funds of the Republic of Uzbekistan for the first half of 2015, representatives of factions of political parties, the deputy group of the Ecological Movement of Uzbekistan in the Legislative Chamber, opinions on the report were expressed.

Deputies from the Movement of Entrepreneurs and Businessmen – Liberal Democratic Party of Uzbekistan, noting the effectiveness of ongoing reforms in the economy of the country, underlined the growing role of small business and private entrepreneurship in ensuring sustainable growth of the economy, so – and enhancement of the public treasury. Against the background of a significant reduction in the tax burden of single tax payment receipts from small and micro enterprises increased by 22.8 percent to the corresponding period of the previous year, which demonstrates the effectiveness of implemented tax preferences.

At the same time, the need for greater control over the implementation of the legislation by officials of state governing bodies in the sphere of entrepreneurship was emphasized. This is especially actual in connection with the adoption on the basis of the presidential Decree of May 15, 2015 of the Law “On introducing amendments and addenda to some legislative acts of the Republic of Uzbekistan aimed at further strengthening the reliable protection of private ownership, subjects of entrepreneurship, and removal of barriers for their rapid development”. Some work is needed to be done on a broad explanation of provisions of the law, to inform entrepreneurs about changes in the order of taxation and liberalization of liability for tax offenses in a timely manner.

Members of the faction of the Democratic Party of Uzbekistan “Milliy tiklanish” on the basis of their election platform, paid special attention to the high results of measures taken on the full support of exporting companies and export diversification, development of new markets for domestic products. It was noted that in conditions of continuing instability in the global markets, the measures taken to expand the volume and range of competitive products contributed to the growth of export of goods and services. Since the beginning of the year 493 companies has been involved in export activity as a result of measures on improving the competitiveness of enterprises, stimulation of new capacity for the production of marketable products in foreign markets. 168 new types of goods were exported. 255 thousand tons of fruits and vegetables were exported, the volume of export grown by 7.4 percent.

Representatives of the faction paid special attention to issues of ensuring compliance with business entities at places in tax legislation and the effective use of benefits and preferences, strengthening the revenue part of local budgets on the basis of further improvement of inter-budgetary relations, as well as the effective use of financial capacities of relevant territories. The need to increase responsibility of local authorities and management of efficient use of existing capacity, exploring new export markets, the rational use of resource potential and internal resources of the regions was noted.

Speakers from the faction of the People’s Democratic Party of Uzbekistan drew attention of the meeting participants to the fact that in the first half of 2015 about 60 percent of the State budget funds were directed to the social sphere. At the same time it was emphasized that the People’s Democratic Party of Uzbekistan is in favor of ensuring targeted social protection of the population, further development of the system of social support.

Positive structural and qualitative changes, positive trends in the economy, balanced development contributed to the growth of employment. As a result of systematic implementation of the Program of creating new workplaces and ensuring employment for the first half of 2015, 441,800 new workplaces were created, of which 274,900 or 62.2 percent – in rural areas. Members of the faction of the People’s Democratic Party of Uzbekistan noted the relevance of the issue of further employment of graduates of professional colleges, strengthening control over this process. The importance of taking further measures on ensuring the effective and targeted use of means of the Fund on promoting employment of the population was also noted.

Deputies made a number of proposals on improving accountability of state governing bodies, budgetary organizations in the center and at places to ensure effective and targeted spending of budget funds, compliance with financial discipline, as well as further strengthening control over the implementation of norms and regulations of the Budget Code.

According to members of the faction of the Social Democratic Party “Adolat”, in the reporting period in the structure of social spending most of the funds are directed on education and healthcare. At the same time, 1 049,8 billion sums were allocated from the State budget for social support and improving welfare of the population. Active implementation of measures envisaged by the State Program “Year of attention and care for the older generation” has contributed to strengthening social protection, especially of the elderly, persons with disabilities. So, during the first half of the year 1,5 trillion sums, as well as more than 37 million US dollars were allocated for the implementation of the State program. It was noted that members of the faction take constant parliamentary control over the implementation of programs, in particular, the targeted use of allocated funds for its implementation from the State budget.

However, members of the faction made suggestions on optimizing financing of priority directions of the state scientific and technical programs, basic and applied research in industries, as well as programs of innovation.

Members of the deputy group of the Ecological Movement of Uzbekistan emphasized that protection of environment and human health is one of the priorities of the state policy.

This allows to implement a number of measures on protecting atmosphere, water and land resources, plants and animals, and others. Construction and reconstruction of treatment facilities was carried out. Measures on improving access to safe drinking water and improving sanitation of settlements are being consistently implemented. During the past period of the year 48.6 million US dollars were allocated from funds of international financial institutions and 191.2 billion soums from the State budget for this purpose.

Taking into account opinions and proposals expressed during the discussion, the Legislative Chamber of the Oliy Majlis approved the report on the execution of the State budget and budgets of state trust funds of the Republic of Uzbekistan for the first half of 2015 and adopted a relevant resolution.