MPs considered a draft state budget of Uzbekistan for 2014. First Deputy Prime Minister and Finance Minister Rustam Azimov and deputy chairperson of the Committee on budget and economic reforms of the Legislative Chamber Sarvar Otamuratov delivered reports on the draft state budget.

It was said that the draft state budget for 2014 was developed based on programme of social-economic development of Uzbekistan, determined by the President of Uzbekistan Islam Karimov at the session of the Government in January 2013, and forecast assessment in the result of social-economic development in 2013.

The draft state budget envisages sustainable high growth of economy, macroeconomic stability, balanced growth of exports, foreign trade and payment surplus, raising efficiency of competitiveness of economy. It is also planned to continue implementation of programme on modernization and update of production capacities, development of road-transport and engineer-communication infrastructure.

It is expected that Uzbekistan’s GDP will grow by 8.1%, industrial output – 8.3%, production of agriculture products – 6% and capital investments – 9.5%. The draft state budget envisages to cut basic income tax rate for legal entities from 9% to 8%, which will help businesses to save up to 132 billion soums. It is also planned to decrease minimal rate of income tax for individuals from 8% to 7.5%.

The document has firm social direction. It is planned to pay attention to development of social sphere, healthcare, education, culture, etc. In 2014, it is planned to direct 7.5% of GDP to education and 3.1% - to healthcare, which will help to develop these directions. The expenses of social sphere and social support of population will increase from 59.3% in 2013 to 59.6% in 2014.

It is envisaged that the expenses to payment of social allowances, financial support of low-income families and compensation payments will make up 1.4% to GDP in 2014.

The draft state budget of Uzbekistan for 2014 envisages state support to farmers, who engaged in cotton production at low-yielding fields, improving land-reclamation, development of social infrastructure, etc.

The volume of centralized investments, financed due to the State budget, will make up 1.5 trillion soums or 1% to GDP, which will be directed to providing water to rural areas, constriction of social infrastructure and roads at newly created housing blocks.

It was said that the programme for construction of individual houses envisages construction of 11,000 individual houses in rural areas. The state budget will allocate financial resources for 0.5% to GDP, while the Asian Development Bank will issue loan.

The programme of creation of jobs and population employment envisages to create 983,000 new jobs in 2014. From 1 January 2014, it is planned to introduce the Budget Code as an experiment for 2014-2015 and if necessary it is planned to introduce changes and amendments. The Budget Code will systematize budget process to single legislative document.

The Movement of entrepreneurs and business people – Liberal Democratic Party of Uzbekistan (UzLiDeP) said that it is important to support small and private businesses. In 2014, it is planned to cut tax burden by 0.5 percentage point, the party said.

UzLiDeP said that the state budget will allocate 26 billion soums to support farmers, who are producing cotton at low-yield fields. The expenses for maintenance of water objects will make up 1.1% to GDP, which will grow by 16.2% compared to 2013.

People’s Democratic Party said that the decrease of income tax for individuals by 0.5 percentage point will help to support social vulnerable layers of population.

Social Democratic Party of Uzbekistan Adolat noted that 0.1% of GDP will be directed to support science, which will grow 1.2 times compared to 2013.

MPs approved the State Budget of Uzbekistan for 2014 and adopted a corresponding resolution.