DAILY NEWS HERALD

2018-11-09

 

 

DAILY NEWS HERALD #221

Public Relations and Mass Media Department of the MFA

November 9, 2018

 

 

 

economy.. 1

Summing up and Forecasting. 1

VISIT OF FOREIGN MINISTER OF UZBEKISTAN to Germany.. 2

Meeting with Adviser to the Federal President of Germany on diplomatic and foreign policy issues. 2

Meeting with the Vice-President of the German Bundestag. 3

Meeting with the Minister for Foreign Affairs of Germany. 3

Meeting with Foreign Policy Adviser to the Chancellor of the Federal Republic of Germany. 3

International relationships. 3

Uzbekistan and Russia will launch a pilot project for development of calculations in national currencies. 3

 

 

 

 

 

 

 

 

economy

Summing up and Forecasting

At an extended meeting at the Cabinet of Ministers, Uzbek officials discussed the expected statistics for 2018 and the forecast for the major macroeconomic indicators, the concept of tax and budget policy, the draft national budget of the Republic of Uzbekistan for 2019.

At the end of 2018, revenue components of the national budget are expected to increase, including through measures taken to increase the autonomy of local authorities in generating local budget revenues, increasing the taxable base, along with measures to liberalize the foreign exchange market and reform the agricultural sector.

Exceeding the forecast parameters of the state budget revenues allowed to increase spending, mainly aimed at strengthening the material and technical base and improving the quality of education, medicine, science, culture and other areas, as well as to boost wages, pensions and benefits.

In 2018, additional funds were allocated from the republican budget to allocate a credit line to commercial banks participating in the co-financing of the affordable housing program in the amount of 3.8 trillion soums (currency rates of CB RU from 09.11.2018, 1$= 8249.97 soums). 1,527.6 billion soums were allocated for the implementation of the state programs “Obod qishloq” and “Obod mahalla”, 500 billion soums to the program “Yoshlar – kelajagimiz”, and 300 billion soum to support the newly created Public Fund to support women and families.

The meeting participants thoroughly and comprehensively discussed the approaches and proposals for the formation of forecasts of the main macroeconomic indicators, the parameters of income and expenditure of the country’s budget for the coming and subsequent years.

It was noted that for the first time, starting from 2019, a mechanism of medium-term budget planning is being introduced by approving the national budget for the forecast year and budget guidelines for the next two years.

In 2019, it is planned to continue the implementation of measures aimed at improving fiscal policy, further improving intergovernmental relations, raising the standard of living of the population, targeting the support system for socially vulnerable groups of the population, consistent differential wage increases and other payments to the population with an impact on inflation. In accordance with the main directions of the Concept of Improving Tax Policy, starting from 2019:

1) the tax burden on the wage fund is reduced by:

- the introduction of a single tax rate on personal income in the amount of 12% and the abolition of the payment of insurance premiums of citizens (8% of wages), which will increase the amount of wages received “on hands” by an average of 6.5%;

- reduce the rate of the unified social payment to 12% of the wage fund;

2) mandatory contributions to state trust funds levied on turnover (revenue) in the amount of 3.2% are canceled;

3) the rates are reduced: corporate income tax from 14% to 12%, income tax on commercial banks from 22% to 20%, withholding tax on dividend income and interest from 10% to 5%; property tax of legal entities – from 5 to 2%.

As a result of the measures taken, about 10 trillion soums will remain at the disposal of economic entities and the population.

The expenditures of the State Budget of the Republic of Uzbekistan provide for the necessary funds for the implementation of the adopted state programs, instructions of the President of the Republic of Uzbekistan following his visits to the country's regions, as well as social support measures for the population.

In 2019, as in previous years, the priority of spending on the maintenance of the social sphere and social support of the population will remain (54% of the total expenditures of the State budget). In the field of wages and other payments, the implementation of measures to increase wages, including the increase from January 1, 2019, is envisaged:

- to teachers and school leaders by 10%, and to teachers with a qualification category - differentially from 15% to 25%;

- low-paid public sector employees – from 5% to 15%.

It was noted that the proposed measure for low-paid categories of workers only in the public sector will affect more than 360 thousand people. For example, the wages of the lowest category of technical workers of budgetary organizations, excluding bonuses and allowances, will increase from 502 to 577 thousand soums.

The budget for 2019 provides funds to increase salaries for university teachers and research institutes at research institutes by 1.5 times, medical and pharmaceutical workers at state institutions by an average of 26.5% (this is in addition to the 20% increase since December 1, 2018). The budget also takes into account the necessary funds for a general increase in wages of public sector employees not lower than the inflation rate and an increase in budget funds for the payment of social benefits by 20%.

Investment costs are estimated at 11.9 trillion soums. These funds will be used to implement strategically important projects determined by decisions of the President and the government, including projects for the development and reconstruction of distribution networks of drinking water supply, water management facilities, construction and reconstruction of transport and communication infrastructure, as well as educational and medical-social institutions.

Particular attention was paid to the financing of the health sector, which provides more than 12 trillion soums. In particular, about 1 trillion soums are allocated to finance the purchase of medicines and medical products, 661.5 billion soums to implement basic healthcare programs, 58 billion soums to equip medical institutions with modern diagnostic, laboratory and medical equipment.

In connection with the falling incomes of the extra-budgetary Pension Fund due to a drastic reduction in the unified social payment rate, cancellation of insurance contributions of citizens and mandatory contributions, the budget expenditures provide for the deficit of 4.7 trillion soums. This will ensure the timely and unconditional payment of pensions to pensioners.

The cost of credit lines to participating banks to co-finance programs for the construction of residential buildings are provided in the amount of 3 trillion soums.

Following the discussion, decisions were made on the approval of the main macroeconomic indicators, the concept of tax and budget policy, the draft State Budget of the Republic of Uzbekistan for 2019 and forecast parameters for 2020-2021 and the direction to the Legislative Chamber of Oliy Majlis of the Republic of Uzbekistan.

(Source: «Uzbekistan Today» newspaper)

VISIT OF FOREIGN MINISTER OF UZBEKISTAN to Germany

Meeting with Adviser to the Federal President of Germany on diplomatic and foreign policy issues

On November 8, 2018, the government delegation of the Republic of Uzbekistan led by the Minister of Foreign Affairs Abdulaziz Kamilov met with the Adviser to the Federal President of Germany on diplomatic and foreign policy issues Thomas Bagger, in Berlin.

Prospects for further development of Uzbekistan – Germany multifaceted cooperation were discussed.

Views were exchanged on current issues of international and regional policy.

(Source: Web site of the MFA of the Republic of Uzbekistan)

Meeting with the Vice-President of the German Bundestag

On November 8, 2018, the Minister of Foreign Affairs of the Republic of Uzbekistan Abdulaziz Kamilov met with the Vice-President of the German Bundestag Hans-Peter Friedrich, in Berlin.

At the meeting, the state and priority areas of further development of inter-parliamentary relations were discussed, including within the framework of Uzbekistan’s cooperation with the European Union.

It was noted that regular contacts between the Oliy Majlis of Uzbekistan and the Bundestag of Germany are one of the key components of bilateral multifaceted cooperation.

(Source: Web site of the MFA of the Republic of Uzbekistan)

Meeting with the Minister for Foreign Affairs of Germany

On November 8, 2018, the Minister of Foreign Affairs of the Republic of Uzbekistan Abdulaziz Kamilov met with the Federal Minister for Foreign Affairs of the Federal Republic of Germany Heiko Maas, in Berlin.

At the meeting, current issues of bilateral relations and prospects for development of cooperation in political-diplomatic, trade-economic, investment, cultural-humanitarian and other fields, including in Uzbekistan – European Union format, were discussed.

Views were exchanged on other issues of bilateral agenda and international issues.

Regarding the situation in Afghanistan, the sides confirmed their interest in launching a peaceful inter-Afghan dialogue and reaffirmed their readiness to cooperate in implementing projects in that country.

On the same day, a regular round of inter-MFA political consultations was held in Berlin.

(Source: Web site of the MFA of the Republic of Uzbekistan)

Meeting with Foreign Policy Adviser to the Chancellor of the Federal Republic of Germany

On November 8, 2018, the Minister of Foreign Affairs of the Republic of Uzbekistan Abdulaziz Kamilov met with Foreign Policy Adviser to the Federal Chancellor of Germany Jan Hecker, in Berlin.

At the meeting, views were exchanged on current issues of development of bilateral relations, prospects for deepening Uzbekistan – Germany interaction.

The parties confirmed mutual interest in filling the general agenda with specific content, giving bilateral relations a long-term character.

(Source: Web site of the MFA of the Republic of Uzbekistan)

International relationships

Uzbekistan and Russia will launch a pilot project for development of calculations in national currencies

The parliamentarians of both countries discussed bilateral cooperation at negotiations in the Council of Federation of the Federal Assembly of the Russian Federation. Chair of the Council Valentina Matviyenko accepted the invitation of her colleagues to visit Tashkent with an official visit. It is expected to take place next year. This is reported by “Vmeste-RF” (“Together-RF”) TV channel of the Federation Council.

Uzbekistan and Russia continue to increase mutually beneficial cooperation, the trade turnover is growing rapidly. The regions of the two countries began to communicate more actively, inter-parliamentary cooperation strengthened.

It is noteworthy that last year the trade turnover between the two countries reached five billion dollars, and this year, according to experts, it will grow by another billion.

The parliamentarians discussed the results of the regional forum at the meeting of Uzbekistan – Russia inter-parliamentary commission. It was noted that the forum stimulates development of digital technologies, tourism, inter-parliamentary cooperation and, most importantly, the regions. For example, recently representatives of 14 subjects of Uzbekistan visited six Russian regions.

The parliamentarians agreed to create a pilot project and, using the example of several regions of Uzbekistan and Russia, to work out calculations in national currencies.

(Source: UzA)

 

 

 

 

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