Mandatory contributions to state-targeted foundations are abolished, foundations are discontinued

President of the Republic of Uzbekistan Shavkat Mirziyoyev signed a resolution "On forecast of main macroeconomic indicators and parameters of the state budget for 2019 and budgetary targets for 2020-2021".

The resolution states on state-targeted foundations the followings:

25. With regard to the abolition of mandatory deductions to the state-targeted foundations, as well as changes in the structure of the single tax payment, the Ministry of Finance, the Ministry of Economy and the State Committee for Investments are entrusted:

a)  from January 1, 2019:

- establishing a Foundation for the development of material-technical base of off-budgetary Educational and Medical institutions under the Ministry of Finance of the Republic of Uzbekistan with the functions of financing and coordination of targeted programs for the construction, reconstruction, repair and equipping of social facilities by the Ministry of Finance of the Republic of Uzbekistan;

- developing of sectorial improvement programs and functions of the client for reconstruction and construction of ameliorative objects, reconstruction and construction of trunk (interregional) collectors by the Ministry of Water Resources of the Republic of Uzbekistan, financing and coordination of targeted programs on reconstruction and construction of ameliorative objects, establishing a Foundation for improving the ameliorative situation of irrigated lands under the Cabinet of Ministers of the Republic of Uzbekistan with the Ministry of Finance;

- abolishing the Foundation for development of the Aral Sea Region under the Ministry of Finance of the Republic of Uzbekistan and program for the development of the Aral Sea region, financed by the State Budget of the Republic of Uzbekistan, with the allocation of expenditures in the separate line;

b)  transferring the Republican Road Fund under the Cabinet of Ministers of the Republic of Uzbekistan (further - the Republican Road Fund) to the State Committee of the Republic of Uzbekistan for Motor Roads, as well as:

- financing and coordination of the targeted programs for construction, reconstruction, repair and equipping the road industry, as well as the costs of road maintenance and operation, the State Committee for Roads of the Republic of Uzbekistan, its territorial subdivisions, regional road maintenance enterprises, bridge management enterprises, entrusting the Ministry of Finance the functions of the State Inspectorate for Supervision of the quality of road construction works at the Republican Road Fund and the Cabinet of Ministers;

- establishing the limited number of managerial staff in the amount of 9 units and approving the proposal of the Republican Road Fund on establishment of the executive body for the implementation of investment projects with participation of international financial institutions, foreign government financial organizations in the field of road business.

26. It is established that:

- from January 1, 2019, the amount of mandatory deductions to the state-targeted Foundations and Republican Road Fund shall be transferred completely to the Pension Fund. Excessive amounts of these payments are paid out of the Pension Fund;

- residual funds of the liquidated state-targeted Foundations and the Republican Road Fund (excluding the special account of employees) will be transferred to the budget of the Republic of Uzbekistan by the end of 2018 and uncompleted construction-refurbishment and finishing works will be financed at the expense of additional sources of the State budget of the Republic of Uzbekistan;

- payment of salaries, compensation and other expenses of the state-targeted Foundations, for the period up to 1 March 2019, shall be financed at the expense of additional sources of the State budget of the Republic of Uzbekistan.

27. Ministry of Finance of the Republic of Uzbekistan is responsible for:

- returning the foreign credits, which were previously attracted by the liquidated state-targeted Foundations and the Republican Road Fund, at the expense of the State Budget of the Republic of Uzbekistan;

- reflecting the expenditures of the liquidated state-targeted Funds and the Republican Road Fund in accordance with the expenditures of the State Budget of the Republic of Uzbekistan on the relevant areas of classification.

The Cabinet of Ministers of the Republic of Uzbekistan, within a week, shall establish a liquidation commission for organizing the liquidation of state-targeted Foundations, carrying out inventory and acceptance of their assets and liabilities, additionally, making offers on debt repayment or write off of hopeless debts.