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Budget perspective
In near time Uzbekistan is expected to finish the development of a budget strategy concept for mid-term perspective under the project “Public Reforms in Uzbekistan”.
The project is implemented with the support of UNDP (United Nations Development Program). It is on developing the process of budget planning and budget policy, business accounting and auditing system and making them correspond with the regulations of the Tax Code of new edition and principles and approaches of the International Financial Reporting Standards. The project ensures further development of tax policy and efficiency of taxation system.
The realization of these tasks will help to increase the stability of tax and budget policies and financial decentralization, expanding the opportunities of socio-economic program financing and people’s equal access to basic social payments offered by the government. In addition, it will strengthen the achieved high economic growth rate and further increase of people’s living standards.
The Chairwoman of the State Budget of Main Office of the Uzbek Ministry of Finance Alesya Avdoshkina informs the UT that the necessity of transforming from annual budget prognostication to mid-term budgeting is primarily caused by that it is difficult to improve the quality of budget services in the annual budget planning, and necessity of taking into consideration the impact of taken measures in tax and budget policies on the key macroeconomic indicators, first of all, on indicators of establishing and using the financial resources of companies, people’s income and balance of payment.
After all, the budget policy must be developed based on the necessity of improving the living standards of people, creating conditions for guaranteeing positive structural reforms in the economy and social sphere, solving the problems of macroeconomic equilibrium and increasing the efficiency and accountability of public finance management.
The mid-term budget prognostication aims to begin the budget cycle with consideration of parameters of perspective (mid-term) and financial planning, approved in previous budget cycle, for concerning fiscal year, analysis of changes introduced into the basic budget criteria of the planned year and development of budget projects for the following years of the predicated period.
It is primarily necessary to predicate the main budget parameters for mid-term and long-term perspectives under the single fiscal and monetary policies, reality and reliability of economic prognoses and prerequisites for budget planning and observation of criteria of stability and reality of budgets and acceptability of tax burden in developing the mid-term and long-term budget policy for the purpose of ensuring the long-term stability of budgets.
Besides, the mid-term budget prognostication aims to analyze systematically and manage the risks in tax and budget spheres and to evaluate mid-term and long-term consequences of taking responsibility for new expenditure liabilities, taking into consideration the stability and predictability of budget revenues.
According to A. Avdoshkina, in recent years the majority of foreign countries have made every effort to modernize the system of public management. In these countries new approaches in this sphere intend to pay more attention to operation of the responsible tax and budget policies and mid-term and long-term budget planning to guarantee financial stability.
For instance, Russia began this process with the restoration of effective budget and tax supervision and financial stability, and in early 2000’s it transformed to the complex modernization of public management that primarily includes integration of mid-term budgeting.
However, an experience of particular country cannot be fully integrated into another country, noted A. Avdoshkina. Analyzing general tendencies and determining general rules and using them in making concrete decisions in this sphere are of great importance. The country can certainly use foreign experience, if it does not copy it blindly but adopt this experience carefully, adapting it to concrete peculiarities of its economy.
Author: Tillakhoja Alimuhamedov
Source: Uzbekistan Today
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