The Cabinet of Ministers of Uzbekistan considered the macroeconomic forecast, the concept of tax and budget policy and the draft state budget for 2008 on 26 September. Prime Minister Shavkat Mirziyoyev conducted the Cabinet session, UzA reported.

Vice Prime Minister and Finance Minister Rustam Azimov, Economy Minister Botir Khodjayev, State Tax Committee Chairman Botir Parpiyev, State Customs Committee Chairman Sodirkhon Nosirov, Commerce and Industry Chamber Chairman Alisher Shaykhov, Tashkent Mayor Abdukahhar Tukhtayev and others spoke at the session.

The Cabinet supported the proposals of the economy and finance ministries on macroeconomic forecast for 2008, which envisages keeping the real GDP growth at the minimum level of 8%, the growth of industrial sectors of 9.6%, the increase of the capital investments by 16% and the inflation level at 6-8% with the growth of the real incomes of the population.

Minister of Public Education Turobjon Jurayev and Health Minister Feruz Nazirov in their reports drew attention to rational and efficient use of budget funds in implementing state programs of personnel training, school education development, healthcare reform and social protection of the population.

During the discussions, concrete proposals were elaborated on the improvement of the tax and budget policy and 2008 budget parameters.

In particular, it was proposed to reduce the single tax for micro firms and small enterprises from 10% to 8% in order to create additional incentives for small business development and solving the employment problems.

It was also proposed to reduce excise tax for natural gas by 5% and income tax for commercial banks by 2%, as well as cancel the excise tax for consumer goods produced in Uzbekistan.

To meet the task of increasing the salaries and other payments 2.5 times during 2007-2009 set by President Islam Karimov, the supply of the 2008 budget envisages additional assignations for gradual increase of the salaries, pensions, stipends and allowances.

At the same time, it was suggested to bring the share of the supply for social sector and social protection of the population to 54%.

The Cabinet also considered issues of improvement of budget planning and financing educational institutions, providing state support to farms growing cotton at low-yield lands, and cardinal increase of financing for land-reclamation.

After the discussions, the Cabinet of Ministers approved the macroeconomic forecast, the concept of tax and budget policy and the draft of the 2008 state budget. They will now be considered by the Legislative Chamber.

The parameters of the state budget for 2008 will be announced after the approval by the Oliy Majlis (Parliament) of Uzbekistan.