In accordance with the constitutional powers of parliament, deputies reviewed reports of the Cabinet of Ministers of the Republic of Uzbekistan on the execution of the State Budget of the Republic of Uzbekistan for 2011 and the first quarter of 2012.
Deputy Prime Minister Rustam Azimov made a report on these issues. Parliamentary control over the execution of the main financial document of the country is one of the most important tasks of deputies of the Legislative Chamber of the Oliy Majlis, so it is always in the center of attention of public elected. Reports on a preliminary basis were discussed at the meetings of all factions of political parties and the deputy group of the Ecological Movement of Uzbekistan, as well as at several committees of the Legislative Chamber.
It was noted that despite the folding in recent years the negative trends in the global economy, through the implementation of a comprehensive program of anti-crisis measures, as well as the progressive realization of the Concept of further deepening democratic reforms and establishing civil society in the country in 2011 provided a stable growth rates of economy and macroeconomic balance.
In 2011 gross domestic product in the country grew by 8,3 percent, the volume of industrial production by 6,3 percent, agriculture by 6,6 percent, construction by 8,1 percent, retail trade by 16,4 percent, paid services by 16,1 percent. The full support of enterprises-exporters and diversification of export structure, active development of new foreign markets in 2011 provided an increase in exports by 15,4 percent and a significant amount of positive foreign trade balance, the growth of foreign reserves.
As a result of an active investment policy on modernization, technical and technological re-equipment of leading sectors of the economy, housing, transport and infrastructure communications development, the volume of attraction of investments increased by 11,2 percent. 1006 new production facilities were introduced, implementation of 144 large investment projects completed. At the expense of the “Kishlok kurilish bank” 7400 houses on standard designs were built in rural areas.
Due to the rational use of investments, successful implementation of localization programs of production revenues from value added tax increased in comparison with 2010 by 22 percent, which are the most important result of the policy on modernization and diversification of the economy held in the country.
Measures on stimulating development of small business and private entrepreneurship provided an increase of its share in GDP to 54 percent against 52,5 percent in 2010. Due to all factors real incomes of population compared to 2010 increased by 23,1 percent.
As a result of implementation of complex measures on developing economy, execution of the State Budget for 2011 was carried out in accordance with the approved parameters, as well as by reducing the tax burden on the economy. State budget was executed with a surplus of 0,4 percent to GDP, and rate of inflation has not exceeded the established forecast indicators.
Systematic implementation of major priorities identified by the President at the meeting of the Cabinet of Ministers dedicated to the main results of 2011 and priorities of socio-economic development in 2012, have provided significant improvements in economy of the country. In particular, growth of gross domestic product in the 1st quarter of this year was 7,5 percent. The economic growth achieved by increasing the volume of industrial production by 6 percent, agricultural output by 6,1 percent and services by 12,6 percent. Measures on further stimulating domestic demand and increase people's purchasing power contributed to the growth of retail trade turnover by 11 percent, paid services - by 20,1 percent and the total income of population – by 26,2 percent.
In the first quarter budget was executed with a surplus of 0,2 percent to GDP.
In addition, at the meeting of the Legislative Chamber it was emphasized that during the reporting period in executing the State budget the main attention was paid to the social sphere, that is, further development of spheres of education, healthcare, targeted social support, timely financing of priority payments.
After answering the questions, a thorough discussion of the reports was held, during which representatives of all factions of political parties and the deputy group of the Ecological Movement of Uzbekistan has spoken.
During the discussion, the faction of UzLiDeP focused its attention on creating favorable conditions and provided tax incentives for small business and private entrepreneurship. It was particularly noted that the reduction of single tax payment rate from 7% to 6% did not lead to a decrease in revenue, but rather by expanding the tax base the increase over the previous year became 31,4%. However, it was suggested to implement, at places, the requirements of legislation aimed at further improving the business environment, stimulating activities of farms, implementation of timely payment for goods produced by them. The need to strengthen attention on reducing non-productive costs in enterprises, attraction of modern mini-technologies in the countryside was emphasized.
Deputies from the faction of PDPU highlighted the social aspect of the State Budget, in which 58% of expenditures directed to social sphere and social support. The implementation of the Program of creating work places and providing employment allowed in 2011 to create about one million new work places, 68% of which are in rural areas. It was also noted that for the implementation of the State program “Year of the Family” in the first quarter of this year from all sources of funding more than 271 billion sum is directed. However, the PDPU faction emphasized the need for further improvement of the system of targeted support for socially vulnerable people through the adoption of a number of normative-legal documents.
Deputies from the faction of DPU “Milliy tiklanish” drew attention to the importance of the recently adopted legislative acts aimed at stimulating the development of family business and crafts. It was noted that efficient expenditure of funds allocated for filling internal market with qualitative domestic products is important. In this regard, deputies from the faction of DPU “Milliy tiklanish” called for strengthening deputy control over the expenditure of funds allocated from local budgets. Particular emphasis was also made on the development of tourism by improving the legislation on tourism, development of small towns, ethno cultural centers, which will increase revenues of local budgets.
Members of the faction of SDPU “Adolat” emphasized the importance of positive results achieved by the introduction of treasury management system by budget. It was noted that an important direction of budget spending should be the modernization of economy based on innovations. However, they drew attention to the need of allocating funds for the development of renewable energy sources system.
Deputy group from the Ecological Movement of Uzbekistan highlighted the increasing annual funding for environmental protection. In particular, if in 2010 from the State budget for environmental protection was allocated 48,9 billion sums, in 2011 this number amounted 84,2 billion sums. At the same time, deputies from the Ecological Movement noted the importance of increasing the effectiveness of developing allocated budget for environmental protection, improvement of residential areas, infrastructure of cities, towns and villages.
Deputies also expressed their opinion on the need for strengthening control over compliance of fiscal discipline. The government was offered to pay special attention to factors adversely affecting the quality of execution of budget revenues, particularly in arrears on taxes and other obligatory payments, state of accounts and creditor debt.
Reports on the State budget have caused a large number of questions among parliamentarians that were asked from representatives of relevant ministries and agencies.
After extensive and substantive discussions, the Legislative Chamber of the Oliy Majlis approved reports on the State budget of the Republic Uzbekistan for 2011 and the first quarter of 2012.
Following the discussion, appropriate decisions of the Legislative Chamber were made.
The Information Service of the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan