Local budgets to be formed independently from 2020

On November 14, at the Legislative Chamber of Oliy Majlis, deputies and responsible bodies discussed the bill “On the state budget of the Republic of Uzbekistan for 2020 and forecast of the main directions of socio-economic development of the country for 2020-2022”.

Minister of Finance Jamshid Kuchkarov listed the main important provisions of the bill.

“I will list the main goals of the law. Firstly, strengthening of parliamentary control in adopting the budget and ensuring its implementation. Secondly, strengthening budget discipline, ensuring the efficient and targeted use of budget funds, strengthening the responsibility of participants in the budget process. Unlike the previous years, in the draft law, in addition to information on income and expenses, forecasts for 2021-2022 are included for information. That is to say, a mechanism is being created for approving the expenses of the republican budget and transfers to the local budgets of Oliy Majlis, and the expenses of local budgets - by the local councils of people’s deputies. Therefore, Oliy Majlis may not approve the state budget expenditures, which include local budgets.

From 2020, local budgets will be formed independently. Local khokimiyats, in case of overfulfillment of forecasts for taxes assigned to local budgets, may accordingly increase the amount of local budget expenditures. 

If the forecast on local taxes is not fulfilled, then khokimiyats will have to proportionally reduce the amount of their expenses. If the region’s revenues decrease by 5% for reasons beyond its control and there is no way to reduce expenses or compensate for the missing income, then the system of assistance from the republican budget will come into force,” Kun.uz correspondent quoted Jamshid Kuchkarov as saying.