Made by: Abzalov M. Bkt(BI)-90 Checked by : Azimbayeva R. Budjet of Uzbekistan for 2020 and foreign investigation in our economy

Made by: Abzalov M. BKT(BI)-90

Checked by : Azimbayeva R.

Budjet of Uzbekistan for 2020 and foreign investigation in our economy

On December 9, 2019, President Shavkat Mirziyoyev signed the law “On the State Budget of the Republic of Uzbekistan for 2020”. The document was adopted by the Legislative Chamber of the Oliy Majlis on November 21, 2019 and approved by the Senate on November 30, 2019.

The state budget of Uzbekistan is for the first time adopted in the form of a law; earlier it was approved by a presidential decree. Of the other important changes, the projected revenues and expenditures of the budget and trust funds cover not only one year, but also contain targets for 2021–2022.

Next year, the country's GDP is projected at 653.546 trillion soums with an increase of 5.5% compared with the current year (2021 - 786.227 trillion, + 5.8%; 2022 - 923.076 trillion, + 6.2%). According to the results of 2020, inflation is expected to be within 12.5–13%, in 2021 - 11% and in 2022 - 9.5%.

The growth rate of industrial production should be 6.5% (2021 - 6.7%, 2022 - 7%), production in agriculture, forestry and fisheries - 4% (4.1%, 4.2%), retail trade turnover - 5.6% (5.7%, 6%).

Budget revenues for the next year are projected in the amount of 128.46 trillion soums, expenses - 121.856 trillion soums.

The macroeconomics of the Republic of Uzbekistan is aimed at developing the national economic sphere and creating a favorable investment environment. National investment policy, in turn, is pursuing the expansion of the domestic market and increasing employment. The main goal of attracting investment is to increase the welfare of the country's population.

The principles of public investment policy can be defined as follows:

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  creating investment development priorities;
  
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  formation of the regulatory framework governing investment activities;
  
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  development of investment infrastructure;
  
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  increasing the availability of investment;
  
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  assistance in the cooperation of the financial sector, education and science, etc.
  

Uzbekistan is doing a lot of work to attract foreign investors, for example, facilitating the visa regime for foreigners. Grant the right to foreign citizens and stateless persons who have invested in the Republic of Uzbekistan in the amount of at least 8,500 times the minimum wage established in the Republic of Uzbekistan at the time of investment, in the form of acquiring shares and shares of business companies, as well as creating a foreign enterprise, to receive multiple three-year visa with the possibility of an unlimited amount of extension of its validity without the need to leave the territory of the Republic of Uzbekistan.

Examples can be given to reduce the requirements for obtaining the status of an enterprise with foreign investment, for example as:

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  the requirements for the mandatory participation of a foreign legal entity as a participant in an enterprise with foreign investment have been canceled;
  
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  reduction of the minimum size of the authorized capital of enterprises with foreign investments from 600 million soums to 400 million soums;
  
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  decrease in the size of the state duty for state registration of enterprises with foreign investments by three times;
  
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  determination of the minimum size of the authorized capital of a joint stock company of 400 million soums;
  

Researchs confirm that the country's investment attractiveness, the stability of the national financial system, and the legal protection of entrepreneurship play a decisive role in attracting foreign direct investment.