Uzbekistan Budget. What is the state budget? Video 1 in Uzbek language.

What is the state budget?
The state budget of the Republic of Uzbekistan is the main financial plan of the state for the coming year to accumulate funds and spend them to fulfill the tasks and functions of the state.

In Uzbekistan, the financial year includes the period from January 1 to December 31. The budget performs many functions, including the implementation of economic policy and strategic development priorities, ensuring accountability and fiscal transparency.
State budget revenues consist of tax and non-tax revenues. Tax revenues include direct taxes (profit tax, turnover tax and income tax), indirect taxes (value added tax, excise and customs duties) and resource taxes (land tax, tax for the use of water resources, tax on subsoil use) and property tax. Non-tax revenues include receipts from dividends, fines and fees.

The expenditures of the state budget reflect the direction of funds for the performance of the functions of the state. Expenditures can be grouped into the following categories: social expenditures (education, healthcare, science, culture, sports and social protection), expenditures on the economy (development of infrastructure, environmental protection, etc.), centralized investments, maintenance of public authorities and administration, and others expenses such as public security, maintenance of embassies and consulates and others.

When drawing up the state budget, the principle of balancing budget revenues and expenditures must be observed. If the expected revenues are not enough to cover the planned expenditures in a particular year, the government uses available reserves (previously accumulated funds) or borrows funds.
The state budget is part of the Consolidated Budget of the Republic of Uzbekistan. The Consolidated Budget also includes the budgets of state trust funds and the Republican Fund for Reconstruction and Development. The state budget consists of the republican budget and local budgets.

The budget process consists of 4 distinct phases: budget preparation, budget approval, budget execution, and accountability.

1. Budget preparation:
The preparation of the state budget includes forecasting revenues and planning expenditures for the next year. The plans are based on the national priorities of state programs aimed at the socio-economic development of the republic.

The activities and obligations of the state cover several years. Starting from 2019, the Medium Term Budget Framework has been introduced in Uzbekistan. This simplifies the process of planning expected income and liabilities for several years. A three-year time horizon allows for the mid- and long-term implications of budgetary decisions to be taken into account.

Budget expenditure planning begins with the Ministry of Finance sending budget instructions and spending limits to ministries. The ministries then prepare their budgets, which are reviewed by the Ministry of Finance. The Ministry of Finance reviews spending plans with each ministry to ensure they are accurate and prudent in the use of limited budgetary funds. Once the budget requests are generated, they are ready for consideration in the budget approval process.
When forecasting revenues, the government reviews economic forecasts and decides whether taxes or other revenues need to be changed to provide enough resources to meet the spending requests of ministries. The income forecast is an estimate of expected income, so the government is being cautious in its calculations.

2. Approval of the budget:
Once the draft budget is prepared, the approval process begins. The Ministry of Finance submits the draft budget to the Cabinet of Ministers, which reviews the proposal and then submits it to the Presidential Administration. After its approval, the draft budget is submitted to the Oliy Majlis, which discusses it, proposes amendments and adopts the budget as a law.

3. Budget execution:
Budget execution is the process of implementing plans formed during the preparation and approval of the budget. After the approval of the State Budget by the Oliy Majlis, the Ministry of Finance brings the funds to the spending managers in accordance with the approved spending schedule. The Ministry of Finance monitors budget execution to avoid cost overruns and prepares quarterly revenue and expenditure reports throughout the year.
4. Accountability:
Budgeting involves more than planning and spending. It is also necessary to monitor budgetary activities and report to the public on how funds have been spent. The Accounts Chamber of the Republic of Uzbekistan guarantees that expenses and reporting comply with the rules of financial reporting. Financial reporting rules allow everyone to see how the funds were spent and what the financial condition of the republic is.

Видео Uzbekistan Budget. What is the state budget? Video 1 in Uzbek language. канала Vatandosh Connect