Mon 05 2020 02:39:03
Tashkent, Uzbekistan (UzDaily.com) -- At the end of the first quarter of 2020, the state budget revenues made up 28.5 trillion. soums, expenses - 27.7 trillion soums, the budget is executed with a surplus of 0.8 trillion soums or 0.5% of GDP, the Ministry of Finance of Uzbekistan reports.
Execution of State Budget Revenues
State budget revenues for the I quarter of 2020 made up 28.5 trillion soums, or 5.4 trillion soums more than in the same period of 2019.
In the first quarter of 2020, tax revenues made up 23.8 trillion soums as part of budget revenues, which is 5.3 trillion soums is more than for the same period of 2019.
The Interregional Inspectorate for Large Taxpayers began its full-fledged work, which ensured the collection of 65% or 15.4 trillion soums of all taxes administered by tax authorities.
In general, in the first quarter of 2020, the coronavirus pandemic did not have a significant impact on budget revenues, as revenues were generated mainly from the results of economic activity in December 2019 - February 2020. So, for example, in the I quarter of this year, customs payments made up 4.8 trillion soums, and in the same period of last year - 3.4 trillion soums. The largest part of these receipts was VAT on imported goods - 3.8 trillion soums, excise tax - 0.2 trillion soums, customs duty - 0.6 trillion soums.
The main share of state budget revenues by taxes was formed from the following: VAT - 7.2 trillion soums (25.4% of all revenues), income tax - 6.3 trillion soums (22.1%), tax on personal income - 3.6 trillion soums (12.5%), subsoil use tax - 3.9 trillion soums (13.6%) and excise tax - 3.2 trillion soums (11.1%).
In the first quarter of this year, VAT revenue (7.2 trillion soums) decreased by 0.5 trillion soums compared to the same period of 2019. The decrease in revenues is due to a decrease in the rate from 20% to 15%, as well as innovations that came into force on 1 January 2020 with the adoption of the new version of the Tax Code. In particular, VAT payers have been granted the right to a lump-sum deduction of VAT on acquired long-term assets (earlier within 12 or 36 months). So, for example, according to the tax reporting provided in the month of February (end of 2019 and January 2020), the amount of a one-time reduction in VAT made up almost 1.0 trillion soums. This amount was formed due to the offsetting of VAT on acquired fixed assets in January of this year and in 2019.
Along with this, VAT is refunded to enterprises using a zero tax rate. Moreover, the amount of compensation for the I quarter of this year made up more than 1.0 trillion soums.
Also in the I quarter of this year, additional revenues of 350.0 billion soums were received to the budget, including 150.0 billion soums for imports, due to the cancellation of benefits provided to automobile enterprises (in accordance with the Decree of the President of the Republic of Uzbekistan from 27 June 2019 - for VAT).
In the I quarter of this year, income tax revenues made up about 6.3 trillion soums, which is 3.9 trillion soums more than in the same period of 2019. Along with general economic growth (from quarter to quarter), revenue growth was secured by income from gold mining profits from gold mining enterprises in the amount of 3.0 trillion soums.
Income from income tax on individuals, including from individual entrepreneurs, in the I quarter of this year made up 3.6 trillion soums, in the same period of 2019 - 2.7 trillion soums. The basic income tax rate for individuals remained unchanged at 12%. At the same time, tax amounts established in fixed amounts for individual entrepreneurs (previously - fixed tax) have decreased by 25% since 2020, with the provision of the right to choose tax payment on the basis of a declaration of comprehensive annual income.
Of the income tax on individuals, taxes withheld by employers (tax agents) at a base rate of 93%. In the total revenue, the share of taxes withheld from income in the form of dividends and interest made up 2%, from individual entrepreneurs - 3%.
The introduction of a flat tax rate led to a reduction in the social tax rate from 25% to 12% for enterprises with a state share in the authorized capital of 50 percent or more, and an increase in the minimum wage increased the share of the wage fund in the legal sector by 37%.
The measures taken were also beneficial for business entities. The reduction of the social tax rate from 25% to 12% for enterprises with a state share in the authorized capital of 50 percent or more, allowed them to leave about 1 trillion soums at their disposal. In the first quarter of this year, total excise tax revenues made up about 3.2 trillion soums, including for petroleum products sold to the final consumer,
- turnover tax - if the sales volume is less than 1 billion soums;
- taxes paid in accordance with the generally established procedure, including property tax, land tax and tax for the use of water resources.
In the 1st quarter of this year, income from property tax of legal entities decreased by 162.1 billion soums compared to the same period of last year. This is due to a 5% decrease in property tax rates at the beginning of 2019.
Revenues from the tax for the use of subsoil for the I quarter of this year made up 3.9 trillion soums, which is 564.5 billion soums more than for the same period of 2019. This is due to the following factors:
- the increase in gold prices in the I quarter of this year made up 120% compared to the same period of 2019;
- 15% indexation of fixed tax rates (in particular, rock (table) salt, dolomite limestones, marble chips, brick and tile raw materials, building sand, etc.);
- Establishment of a tax for the use of subsoil for certain types of minerals not lower than fixed rates (blocks of natural facing stone, sand and gravel, limestone-shell rock, etc.).
Additional revenues due to the last two factors made up about 40.0 billion soums.
Execution of State Budget Expenses
The expenditures of the State budget for the I quarter of 2020 made up 27.66 trillion soums or 21.1% of the total annual approved expenses. Of these, the republican budget expenditures made up 18.15 trillion soums, local budgets – 9.51 trillion soums.
In the reporting period, 15.55 trillion soums or 56.6% of total expenses were allocated from the State budget for financing social expenses. The growth of social spending made up 18.5% over the corresponding period last year.
The costs of maintaining and developing educational institutions, which account for the bulk of social spending, made up 7.96 trillion soums. 1.42 trillion soums were allocated from the State budget for the maintenance of preschool educational institutions (450.5 billion soums or 1.5 times more than the same period of last year), including 162.6 billion soums allocated for the purchase of food products (more than 53.6 billion soums or 1.5 times more compared to the same period of last year).
In particular, subsidies in the amount of 134.5 billion soums (in the first quarter of 2019 -6.9 billion soums) were allocated to partially cover the costs of non-governmental preschool organizations
In the reporting period, 150.0 billion soums or 1% of the total expenditures on the social sphere were allocated for the development of science (Q1 2019 - 0.3%).
3.88 trillion soums were allocated from the state budget to the healthcare sector, or 1.08 trillion soums (1.5 times) more than in the same period of last year. The share of allocated funds is 14% of the state budget expenditures (in 2019 - 11.6%). Including 252.2 billion soums were allocated for the purchase of medicines (in 2019 - 189.9 billion soums).
In addition, in the I quarter, 343.6 billion soums were allocated for the health sector at the expense of the Anti-Crisis Fund under the Ministry of Finance.
The indicated funds were allocated for the implementation of the following measures: 82.7 billion soums to the local budgets of the Republic of Karakalpakstan, regions and the city of Tashkent to cover the costs of keeping citizens quarantined, disinfection of public places and other epidemiological measures:
The Agency for Sanitary and Epidemiological Well-Being received 123.5 billion soums for the purchase of personal protective equipment, disinfection, isolation, test systems (PCR), diagnostic and medical equipment.
For the construction of a complex for temporary detention of quarantined citizens in Yukorichirchik district and a special hospital in Zangiata district of Tashkent region, as well as for the reconstruction of a modern diagnostic laboratory complex in the city of Tashkent - 107.4 billion soums;
Federation of trade unions of Uzbekistan to support low-income women - 30.0 billion soums.
In the I quarter of 2020, 541.0 billion soums were allocated from the State budget for culture and sports, of which 249.2 billion soums were spent on culture, and 291.8 billion soums were spent on sports.
Expenditures on culture and sports increased by 58.6% compared to the same period of last year. This is due to the following factors: resolution of the President of the Republic of Uzbekistan from 7 June 2019 No. PP-4354 “On further improvement of information and library services for the population of the Republic of Uzbekistan” formed 186 district (city) information and library centers under the Alisher Navoi National Library of Uzbekistan. Also in 2020, the National Library was additionally allocated 92 staff units. In this regard, the expenditures aimed at these measures made up 18.2 billion soums more than in the previous year.
As part of the program for the further development of national cinematography, the cost of shooting feature films, documentaries and animated films, including short films and children’s humorous newsreels, made up about 19.3 billion soums, which is 8.9 billion soums more than in the previous year.
In addition, the costs of financing fees and services of the center of radio communications, broadcasting and television (MDG) and others increased by 24.0 billion soums compared to the previous year.
Also, by resolution of the Cabinet of Ministers from 19 November 2019 No. 918 from 1 January 2020, the basic tariff rates of some employees of sports schools and specialized state boarding schools for Olympic and national sports were increased by an average of 1.35 times. As a result of this, expenses for the payment of wages and equivalent payments increased by 58.3 billion soums, compared with the same period of the previous year.
In the reporting period, 1.66 trillion soums or 293.6 billion soums more (an increase of 21.4%) were allocated from the State budget to finance social benefits, material assistance, compensation and compensation for employment, as well as in the same period of last year .
These funds were used to pay:
allowances for families with children under the age of 14 years (an average of 245 thousand families) - 177.9 billion soums;
benefits for the care of a child until he reaches the age of two years (an average of 258 thousand mothers) - 329.1 billion soums;
monthly financial assistance to low-income families (an average of 62 thousand families) - 62.4 billion soums;
lump sum benefits at birth (787.2 thousand children) - 105.2 billion soums;
benefits to disabled people since childhood, elderly and disabled citizens who do not have the necessary work experience - 439.8 billion soums.
Funds for increasing the employment of the population were directed to: the Public Works Fund under the Ministry of Employment and Labor Relations of the Republic of Uzbekistan - 45.0 billion soums;
State Employment Promotion Fund - 37.5 billion soums;
Public Fund for the Support of Women and Family - 3.0 billion soums;
The Yoshlar-kelajagimiz Foundation under the Youth Union of Uzbekistan - 20.0 billion soums.
In the I quarter of this year, the State budget expenditures on the economy made up 3.15 trillion soums or 11.4% of total expenses for the I quarter.
expenditures on the economy were mainly directed to: operational expenses of the water sector - 926.6 billion soums;
expenses for the development of public roads - 603.2 billion soums; expenses for the improvement of settlements - 438.1 billion soums;
expenses for the development of drinking water supply and sanitation - 180.2 billion soums;
housing and communal services - 166.1 billion soums;
improvement of the reclamation state of irrigated lands - 82.1 billion soums;
expenses for the development of the Aral Sea region - 47.7 billion soums.
In the reporting period, funds in the amount of 1.78 trillion soums or 6.4% of the total expenditures of the State budget were allocated for the maintenance of state authorities, state administration, justice bodies, prosecutors and courts.
Analysis of the execution of the State budget by economic classification shows that the share of wages and equivalent payments in the total budget increased to 39% against 35.2% last year.
In the reporting period, timely financing of wages of budgetary organizations in the amount of about 10.8 trillion soums and deductions from wages in the amount of over 2.3 trillion soums was provided.
Also in the reporting period, capital investments in the amount of 1.6 trillion soums and other expenses in the amount of 12.8 trillion soums were financed.
The increase in subsidies in the I quarter of this year to the same period of last year is associated with the allocation of transfers to the Pension Fund from the State budget in the amount of 655 billion soums.
The state budget approved for 2020 is fundamentally different from previous budgets. In 2020, for the first time, budget indicators were approved by the Law of the Republic of Uzbekistan.
The Law “On the State Budget of the Republic of Uzbekistan for 2020” stipulates that the salary and social tax of secondary schools and preschool educational institutions are financed, respectively, through the Ministry of Public Education and the Ministry of Preschool Education of the Republic of Uzbekistan.
As a result, in the I quarter, the share of the first and second groups of expenditures of local budgets of the Republic of Karakalpakstan, regions and the city of Tashkent in the State budget made up 41% against 78.8% last year.
Execution of local budgets
For the I quarter of 2020, large-scale work was carried out aimed at increasing the independence of local authorities in managing local budgets, sharply reducing centralization in budget execution, providing guaranteed sources of financing for the programs of regional socio-economic development, increasing the authority and responsibility of local khokimiyats in the formation and use of funds local budgets.
In the reporting period, the revenues of local budgets were fulfilled by 113.2% of the forecast and made up 6.26 trillion soums, and the expenditures were implemented by 89.8% of the plan and made up 9.51 trillion soums.
In the I quarter of 2020, additional sources were formed in local budgets in the amount of 1.78 trillion for the account:
free balance as of 1 January 2020 – 1.75 trillion soums; sale of property turned into state revenue (confiscation) - 11.8 billion soums; revenues to the corresponding budget due to privatization - 7.4 billion soums; cash from the exercise of land rights -6.8 billion soums.
The relevant decisions of the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of the regions, the city of Tashkent and districts (cities) have funded various activities in the amount of 1.37 trillion soums from additional sources.
In particular, for financing:
debts under the programs “Obod Qishloq” and “Obod Mahalla” for 2019 - 193.0 billion soums;
programs of socio-economic development of the regions - 523.3 billion soums of expenses for improvement of the regions - 101.8 billion soums;
Fund of the military-administrative sector - 64.6 billion soums;
economic expenses and strengthening the material and technical base of budget organizations - 114.5 billion soums.
The resolution of the Cabinet of Ministers of the Republic of Uzbekistan from 29 June 2017 No. 445 “On measures to organize work to identify reserves for expanding the revenue base of local budgets” established the interaction of financial bodies and state tax authorities to improve work aimed at increasing revenues to the State budget of the Republic of Uzbekistan and tax base expansion.
As of 1 April 2020, additional funds in the amount of 125.9 billion soums were attracted to the local budgets of the Republic of Karakalpakstan in order to ensure the above resolution as a result of monitoring and studies conducted by financial and state tax authorities.
In particular, as a result of the inventory:
- 40,446 residential and non-residential facilities owned by individuals - 9.9 billion soums;
- 44 544 land plots of individuals - 12.9 billion soums;
- 22,457 individual entrepreneurs carrying out activities without state registration were identified - 40.8 billion soums;
- at catering establishments, 1,235 cases of non-conclusion of labor contracts in accordance with the legislation were identified - 7.3 billion soums;
- markets and shopping malls in 2 108 cases - 1.8 billion soums;
As a result of monitoring, inventory and study of other activities in 15,250 cases identified additional revenue reserves of the budget and extra-budgetary funds in the amount of 53.1 billion soums.