“Budget deficit should be prevented” – Shavkat Mirziyoyev

By the end of 2018, Uzbekistan may face a budget deficit. According to forecasts, the state budget revenues will be 74,5 trillion sums and expenditures – 78,5 trillion sums, Kun.uz correspondent reports.

This was announced during the meeting devoted to discussing the expected results of the State budget execution in the current year, the main macroeconomic indicators and the directions of fiscal policy for 2019, which was held on October 30 under the chairmanship of President Shavkat Mirziyoyev.

At the meeting, it was noted that by the end of 2018, the state budget revenues are expected to be 74,5 trillion sums, expenses – 78,5 trillion sums, local budgets will have 5,5 trillion sums or 6 times more funds than the last year.

This year, budget expenditures rose by 60% or 29 trillion sums compared to 2017. 5,6 trillion sums of this amount was spent on funding the projects “Obod kishlok”, “Obod makhalla”, “Yoshlar – kelajagimiz” and the construction of affordable housing.

The government allotted 700 billion sums to “Microcreditbank” and over 1 trillion sums to Xalq banki” (Public bank) to support young entrepreneurs with privileged loans and provide the population with employment. Another 4,5 trillion sums was spent on improving the country's defense capability.

Moreover, together with an increment in the wages of public sector employees, pensions and allowances above the inflation rate, there was 30 to 100% salary increase on the wage of educators, teachers, employees of science and culture.

Liberalization of monetary and pricing policies, streamlining of mutual settlements in agriculture and growth of capital investments had a positive effect on the increase of budget revenues.

"There are two more months before the end of the year. Therefore, it is necessary to use all the reserves and prevent a possible budget deficit," Shavkat Mirziyoyev said.

At the meeting, it was noted that the steady growth of budget revenues and the historical changes introduced in the tax system will be of great help for the population and businesses next year.

Reduction of the maximum tax rate in personal income from 22 to 12%, a single social payment rate from 25 to 15%, as well as the abolition of the 8% insurance fee will lead to an increase of population income by 6,5 percent.

As a result of lowering corporate property tax rates from 5 to 2%, income tax from 14 to 12%, a single tax payment for small businesses from 5 to 4%, entrepreneurs will have additional 2 trillion sums at their disposal. In general, the number of taxes and obligatory payments will be reduced from 19 to 15 types.

These concessions will complicate the supply of budgetary revenues. In this regard, instructions to reduce the deficit and increase budget revenues, in particular, on the implementation of systematic work by the legalization of the number of employees and wages, were given at the meeting.