This Code shall regulate relations in the field of formation, preparation, reviewing, adoption, approval, execution of budgets of the budget system of the Republic of Uzbekistan (hereinafter referred to as budgets of the budget system), government borrowing and controlling the implementation of budgetary legislation.

Budgetary legislation consists of this Code and other regulatory legal acts.

The norms of budgetary legislation contained in other regulatory legal acts must comply with this Code.

If the international treaty ratified by the Republic of Uzbekistan establishes other rules than those contained in the budgetary legislation of the Republic of Uzbekistan, the rules of the international treaty shall apply.

The following basic definitions are used in this Code:

circulating cash balances — the minimum allowable amount of budget funds held in the treasury accounts of the republican budget of the Republic of Uzbekistan, the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of the city of Tashkent, budgets of districts and cities for a certain financial year;

manager of budgetary funds of the first level — a legal entity that distributes budgetary funds allocated from the republican budget of the Republic of Uzbekistan in the amount established by law;

budgetary allocations — funds provided to budgetary organizations and recipients of budgetary funds from the State Budget of the Republic of Uzbekistan and budgets of state trust funds;

budget process — the process of formation, compilation, consideration, adoption, approval and execution of budgets of the budget system, control over their formation, compilation and execution, preparation and approval of reports on the execution of budgets of the budget system, as well as the relationships between them;

participants of budget process — bodies of public authority and management, state financial control authorities, budget organizations and budget fund recipients;

manager of budgetary funds — manager of budgetary funds of the first level and manager of budgetary funds of the second level;

budget authorities — authorities of the budget process participants in the sphere of budget relations;

budget loan — cash granted on a repayable basis from a higher-level budget to a lower-level budget, as well as state trust funds, resident entities;

budget request — document providing a justification for the need to receive budgetary allocations on a mid-term basis;

extra-budgetary funds of budget organization — funds received at the disposal of a budget organization from sources provided by law;

budgets of the budget system — state budget of the Republic of Uzbekistan, budgets of state trust funds and extra-budgetary funds of budget organizations;

inter-budget transfers — funds transferred from the republican budget of the Republic of Uzbekistan to the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent, state trust funds and vice versa, as well as from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and the city budget of Tashkent to the budgets of districts and cities and vice versa;

temporary cash gaps — temporary excess of expenditures over revenues of budgets of the budget system in a certain period of the current financial year;

temporary estimate of expenditures — document valid until the approval and registration of estimate of expenditures of a budget organization or recipient of budget funds, which reflects budgetary allocations provided for it for each month, taking into account changes in legislation;

primary surplus of the State budget — the surplus of the State budget, calculated by deducting interest payments on servicing the public debt from the expenses of the State budget of the Republic of Uzbekistan for a certain period;

primary State budget deficit — the State budget deficit, calculated by deducting interest payments on servicing the public debt from the expenses of the State budget of the Republic of Uzbekistan for a certain period;

state budget surplus — excess of revenues of the state budget of the Republic of Uzbekistan over its expenditures for a certain period;

state budget deficit — excess of expenditures of the state budget of the Republic of Uzbekistan over its revenues for a certain period;

state financial control — study, analysis and comparison of accounting, financial, statistical, banking and other documents of objects of state financial control in order to monitor the implementation of budget legislation;

objects of state financial control — republican budget of the Republic of Uzbekistan, budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent, spending units, budget organizations and recipients of budget funds, state trust funds, other funds established in accordance with the established procedure, and extra-budgetary funds of budget organizations;

public borrowing — attraction of assets for which obligations of the Republic of Uzbekistan as a borrower or guarantor of repayment of credits (loans) of resident borrowers arise;

public procurement — procurement of goods (works, services) carried out at the expense of funds of budgets of the budget system;

public debt — obligations of the Republic of Uzbekistan arising from internal and external borrowing;

revenue and expenditure estimate — document that reflects the expected revenue and expenditures of extra-budgetary funds of budget organizations for the corresponding quarter or financial year;

donors — states, governments of states, international and foreign governmental organizations, foreign citizens, as well as international and foreign non-governmental organizations included in the list established by the Cabinet of Ministers of the Republic of Uzbekistan, allocating funds on a gratuitous basis to the Republic of Uzbekistan, the Government of the Republic of Uzbekistan, self-government bodies of citizens, legal entities and individuals, which activities are not contrary to the legislation of the Republic of Uzbekistan;

grants — cash allocated on a gratuitous basis to budgets of the budget system to cover the difference between revenue and expenditures in case of insufficiency of their own revenue;

consolidated expenditures estimate — expenditures estimate prepared by spending unit based on expenditures estimates of subordinate budget organizations and recipients of budget funds;

the second level spending unit — legal entity assigned by the Cabinet of Ministers of the Republic of Uzbekistan to first level spending unit and distributing budget funds allocated to it;

overall fiscal balance — aggregate balance, which includes the Consolidated budget of the Republic of Uzbekistan and expenditures executed through external borrowings, attracted for the implementation of state programs and repaid from the state budget of the Republic of Uzbekistan;

fiscal risks — assessment of losses of financial resources in the formation and spending of funds of budgets of the budget system of participants in the budget process;

financial year — the period from the first of January to the thirty-first of December inclusive;

financial obligation — obligations of budget organizations and recipients of budget funds arising on the basis of documents, including executive documents, obliging them to transfer funds;

subvention — cash granted on a gratuitous basis from higher-level budget to a lower-level budget for the accomplishment of definite expenditures;

subsidy — cash funds provided to legal entities and individuals at the expense of budgets of the budget system to finance or co-finance the production of goods, performance of work, provision of services and their implementation or partial reimbursement of targeted expenditures;

control revenues — national taxes and other compulsory payments, as well as non-tax payments, for which the norms of assignments between budgets of the budget system are established. Non-tax payments include payments that are not taxes and other compulsory payments that go to budgets of the budget system;

expenditure item — part of budget classification that determines the expenditures of budgets of the budget system by economic purpose and specific types of payments;

estimate of expenditures — document drawn up and approved by a budget organization or recipient of budget funds for a financial year, which reflects the budgetary allocations provided to it by expenditure items;

staffing table — document containing a list of job titles of permanent workers and vacancies with indication of their number and size of official salaries drawn up by a budget organization;

separate treasury accounts — analytical accounting registers opened in the information system of the Ministry of Finance of the Republic of Uzbekistan designed to reflect transactions related to execution of budgets of the budget system;

legal obligations — obligations arising for budget organizations and recipients of budget funds on the basis of concluded agreements, as well as decisions of the relevant bodies of state authority and management;

Single treasury account — special bank account of the Ministry of Finance of the Republic of Uzbekistan in national or foreign currency, opened in the Central Bank of the Republic of Uzbekistan;

transferred revenue — revenue generated in a certain administrative-territorial unit and credited to the higher budget with subsequent transfer to the budget of this administrative-territorial unit where they are generated;

State budget of the Republic of Uzbekistan (State budget) — centralized monetary fund of the state, intended for the financial provision of the tasks and functions of the state;

treasury units — Treasury of the Ministry of Finance of the Republic of Uzbekistan, treasury departments for the Republic of Karakalpakstan, regions and the city of Tashkent, treasury units for districts and cities;

treasury transaction memo — payment document used to transfer funds from one separate treasury account to another separate treasury account;

territorial spending unit — legal entity that has subordinate organizations receiving funds from the republican budget of the Republic of Karakalpakstan, regional budgets of regions, city budget of the city of Tashkent and budgets of districts and cities, as well as a budget organization or recipient of budget funds financed from the republican budget of the Republic of Karakalpakstan, regional budgets of regions, city budget of the city of Tashkent and budgets of districts and cities;

territorial financial authorities — Ministry of Finance of the Republic of Karakalpakstan, financial departments of hokimiyats of regions and city of Tashkent, financial units of district and city hokimiyats;

mid-term fiscal strategy — document on the main directions of tax and budgetary policy for the medium term.

Budget organization is a non-profit organization created by decision of a body of state authority in accordance with the established procedure for the implementation of state functions and supported by State budget.

The terms of financing and the procedure for maintaining budgetary accounting of budget organizations are determined by budgetary legislation.

Recipient of budget funds is a legal entity or individual receiving funds from State budget and budgets of state trust funds.

Recipient of budget funds cannot have the status of a budget organization.

Terms of financing a recipient of budget funds from State budget and budgets of state trust funds are determined by budgetary legislation.

Legislative norms that envisage a decrease in the revenues of budgets within the budget system during the financial year, granting or revocation of tax and customs privileges, as well as a decrease or increase in allocations from non-tax revenues to the budgets of the budget system, shall enter into force from January 1 of the following financial year.

Budget system is a set of budgets of all levels, budgets of state trust funds and extra-budgetary funds of budget organizations, principles of building and organizing budgets of the budget system, relationships between them that arise during the budget process. Formation, preparation, review, adoption, approval and execution of budgets of the budget system for a certain financial year are carried out in the national currency of the Republic of Uzbekistan — soums.

Budget system is based on the following principles:

budget system unity;

compliance of the budget system with the administrative-territorial structure of the Republic of Uzbekistan;

equilibrium and interconnection of budgets of the budget system;

forecasting revenues and planning expenditures of budgets of the budget system;

specification and targeted use of budget funds of the budget system;

independence of budgets of the budget system;

effectiveness of the use of funds of budgets of the budget system;

unity of cash;

responsibility of the participants of the budget process;

openness.

Forms of budget documentation and budgetary reporting and budget classification should be unified and provide for a single procedure for the formation and execution of revenues and expenditures, budgetary accounting and budgetary reporting for budgets of the budget system.

Budget system should correspond to the administrative-territorial structure of the Republic of Uzbekistan.

Volume of envisaged expenditures of budgets of the budget system should correspond to the total volume of their revenues and sources of deficit coverage.

When drawing up and executing budgets of the budget system, budget funds can be redistributed between them to ensure their equilibrium.

When drawing up budgets of the budget system, revenues are projected by their specific sources, and expenditures are planned by areas in accordance with budget classification.

Funds of budgets of the budget system are allocated to specific budget organizations and recipients of budget funds to be used for financing specified purposes.

Budget system budgets are independent.

When drawing up and executing budgets of the budget system, participants of the budget process, within the framework of the powers granted to them, proceed based on the requirement of achieving a result using the amount of funds specified by budgets of the budget system.

All revenues of budgets of the budget system are credited to the Single treasury account, and their expenditure payments are carried out from this account.

Principle of responsibility of participants in the budget process means that each participant of the budget process is responsible for its actions at each stage of the budget process.

Principle of openness means:

openness of procedures for review and adoption of State budget and budgets of state trust funds to society and the media, as well as the possibility of active participation of citizens in the budget process;

disclosure (publication) of information on the approved State budget and budgets of state trust funds in the media and on the official website of Ministry of finance of the Republic of Uzbekistan;

publication in the media, as well as posting and updating on the official website of Ministry of finance of the Republic of Uzbekistan of the information on the execution of State budget and budgets of state trust funds.

Budget classification is a grouping of revenues and expenditures of budgets of the budget system, as well as sources of covering State budget deficit and is used to systematize the formation, preparation and execution of budgets of the budget system.

Budget classification is developed in accordance with international classification systems and approved by Ministry of finance of the Republic of Uzbekistan.

Budget classification has the following components:

classification of revenues of budgets of the budget system;

classification of expenditures of budgets of the budget system;

classification of sources of covering State budget deficit.

The main principles of budget classification are completeness, unity and consistency.

Principle of completeness of the budget classification provides for the coverage of all participants of the budget process.

Principle of unity of budget classification means that all participants of the budget process apply a single budget classification.

Principle of consistency of budget classification means that budget classification codes are not applied simultaneously to account for different types of transactions in the budget process.

Classification of revenues of budgets of the budget system is coding of revenues by their types and sources.

Structure of classification of budget revenues of the budget system consists of:

classification of sources of funds and levels of budgets of the budget system;

types of revenues;

organizational classification;

territorial classification.

Classification of sources of funds and levels of budgets of the budget system is used to attribute incoming revenues to the corresponding sources of funds and the level of budgets.

Type of revenue consists of section, paragraph and kind of revenue.

Revenue section is coding of revenue by source.

Revenue paragraph is coding of taxes and other compulsory payments, as well as non-tax payments by their tax base.

Kind of revenue is a specific kind of revenue of budgets of the budget system.

Organizational classification is used in order to attribute incoming revenues of the relevant body administering these revenues.

Territorial classification is used to attribute incoming revenues to the corresponding administrative-territorial unit in which these revenues are generated or to which they are credited.

Classification of expenditures of budgets of the budget system is coding of expenditures of budgets of the budget system reflecting their areas.

Classification of expenditures of budgets of the budget system consists of:

classification of sources of funds and levels of budgets of the budget system;

functional classification;

program based classification;

organizational classification;

economic classification;

territorial classification.

Functional classification of expenditures is grouping of expenditures reflecting the direction of funds for performance of state functions.

Organizational classification of expenditures is coding by spending units of budgets of the budget system.

Economic classification of expenditures is coding of expenditures by economic purpose.

Territorial classification is used in order to attribute budget organizations and recipients of budget funds to the corresponding administrative-territorial unit.

Expenditures of budgets of the budget system by economic attributes include the following groups of expenditures:

first group — salaries, pensions, benefits, scholarships, compensation payments and material assistance to low-income families;

second group — allocations for social requirements;

third group — capital investments (in accordance with target lists on state development programs);

fourth group — other expenditures.

Specific items by groups of expenditures are determined in accordance with the budget classification.

Classification of sources for covering State budget deficit is their grouping by internal and external sources.

Cabinet of Ministers of the Republic of Uzbekistan:

organizes and coordinates the process of developing a draft law on State budget of the Republic of Uzbekistan for the next year (hereinafter - draft law on State budget) and a budget message;

approves the list of spending units of the first and second levels;

submits to the Chamber of accounts of the Republic of Uzbekistan a draft law on State budget and a budget message for consideration and opinion;

submits budget message to the Chambers of the Oliy Majlis of the Republic of Uzbekistan;

submits draft law on State budget to the Legislative chamber of the Oliy Majlis of the Republic of Uzbekistan;

coordinates and supervises the activities of bodies of state administration on the execution of State budget and budgets of state trust funds;

reviews reports on the execution of State budget and budgets of state trust funds on a quarterly basis;

submits to the Chamber of accounts of the Republic of Uzbekistan reports on the execution of State budget and budgets of state trust funds for the past financial year for external audit and evaluation;

submits for approval to the chambers of the Oliy Majlis of the Republic of Uzbekistan reports on the execution of the State budget and budgets of state trust funds for the corresponding period;

considers proposals on amendments to the allocations from the republican budget of the Republic of Uzbekistan and budgets of state trust funds during the specific financial year in the cases provided for by Articles 145 and 149 of this Code;

submits to the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan for consideration a draft law on amendments and additions to the Law on the State Budget of the Republic of Uzbekistan, together with the corresponding conclusion of the Accounts Chamber of the Republic of Uzbekistan;

makes decisions on the use of additional sources of the republican budget of the Republic of Uzbekistan;

makes decisions on the use of reserve fund of the Cabinet of Ministers of the Republic of Uzbekistan;

approves the maximum amount of budget allocations for second level spending units within the limits of allocations from the republican budget of the Republic of Uzbekistan for first level spending units.

Cabinet of Ministers of the Republic of Uzbekistan may also have other budget authorities in accordance with the legislation.

Chamber of accounts of the Republic of Uzbekistan:

submits to the Cabinet of Ministers of the Republic of Uzbekistan an opinion on the draft law on the State budget and fiscal strategy for the medium term, to the Council of Ministers of the Republic of Karakalpakstan, the khokims of the regions and the city of Tashkent on the budget of the Republic of Karakalpakstan, local budgets of the regions and the city of Tashkent, respectively;

has access to information systems and resources of ministries, departments and banks, allowing, based on primary data, to control the targeted execution of revenue and expenditure items of budgets of the budget system;

monitors the legality of the formation, targeted and efficient spending of resources of the Cabinet of Ministers and Ministry of finance of the Republic of Uzbekistan held in bank accounts;

monitors the formation and use of funds of the Fund for Reconstruction and Development of the Republic of Uzbekistan, as well as other funds created in accordance with the established procedure;

monitors the execution of revenues of State budget and budgets of state trust funds;

monitors the targeted use of funds of budgets of the budget system;

conducts an external audit and assessment of the annual report on the execution of the republican budget of the Republic of Uzbekistan and the budgets of state trust funds and submits an opinion on them to the Cabinet of Ministers of the Republic of Uzbekistan;

conducts an external audit and assessment of the annual report on the execution of the budget of the Republic of Karakalpakstan, local budgets of the regions and the city of Tashkent and submits conclusions on them to the Council of Ministers of the Republic of Karakalpakstan, khokims of the regions and the city of Tashkent, respectively;

submits to the Cabinet of Ministers of the Republic of Uzbekistan an opinion on the draft law on introducing amendments and additions to the Law on the State Budget of the Republic of Uzbekistan;

monitors compliance with the procedure for ensuring the openness of the budget process;

adopts normative legal acts on issues within its mandate.

Chamber of accounts of the Republic of Uzbekistan may have other budget authorities in accordance with the legislation.

Jokargy Kenes of the Republic of Karakalpakstan, Kengashes of people's deputies of regions and city of Tashkent, districts and cities:

review and adopt the budget of the Republic of Karakalpakstan, local budgets of regions and city of Tashkent, budgets of districts and cities proposed by the Council of Ministers of the Republic of Karakalpakstan, hokims of regions and city of Tashkent, districts and cities, respectively;

review and approve reports on the execution of the budget of the Republic of Karakalpakstan, local budgets of regions and city of Tashkent, budgets of districts and cities for relevant period submitted by the Council of Ministers of the Republic of Karakalpakstan, hokims of regions and city of Tashkent, districts and cities, respectively, on a quarterly basis;

take into account the forecasts of revenues of the republican budget of the Republic of Karakalpakstan, regional budgets of regions, the city budget of the city of Tashkent and the budgets of districts and cities;

make decisions on making changes to the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent, budgets of districts and cities;

hear reports from territorial managers of budget funds financed from the relevant budgets on the effectiveness of the use of budget funds and the results achieved;

establish rates of local taxes and other compulsory payments within the limits established by law.

Jokargy Kenes of the Republic of Karakalpakstan, the Kengashes of people's deputies of the regions and the city of Tashkent consider and approve the maximum amounts of equalizing interbudgetary transfers allocated respectively from the republican budget of the Republic of Karakalpakstan, the regional budgets of the regions and the city budget of the city of Tashkent to the budgets of districts and cities.

Jokargy Kenes of the Republic of Karakalpakstan, Kengashes of people's deputies of regions and city of Tashkent, districts and cities may have other budget authorities in accordance with the legislation.

Council of Ministers of the Republic of Karakalpakstan, hokims of regions and city of Tashkent, districts and cities:

organize and coordinate the process of developing a draft of the respective budget and its implementation;

make decisions on drafting relevant budgets, establish the procedure and terms for their preparation based on received budget requests;

submit for consideration and adoption to the Jokargy Kenes of the Republic of Karakalpakstan, Kengashes of people's deputies of regions and city of Tashkent, districts and cities draft budget of the Republic of Karakalpakstan, drafts of local budgets of regions and city of Tashkent, budgets of districts and cities, respectively;

consider proposals on amendments to parameters of the budget of the Republic of Karakalpakstan, local budgets of regions and city of Tashkent, budgets of districts and cities during the financial year in the manner prescribed by Articles 146 — 148 of this Code;

submit for approval to the Jokargy Kenes of the Republic of Karakalpakstan, Kengashes of people's deputies of regions and city of Tashkent, districts and cities reports on the execution of the budget of the Republic of Karakalpakstan, local budgets of regions and city of Tashkent, budgets of districts and cities for the relevant period;

organize monitoring of the completeness and timeliness of revenues to State budget and budgets of state trust funds;

organize monitoring of the targeted spending of budget funds;

consider and approve the maximum amounts of budget allocations allocated from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and the city budget of the city of Tashkent, budgets of districts and cities to territorial managers of budget funds for drawing up a budget request;

make decisions on the introduction of decreasing and increasing coefficients to the established rates for individual taxes determined by legislation, taking into account the specifics of the regions and places of business.

Council of Ministers of the Republic of Karakalpakstan, hokims of regions and city of Tashkent, districts and cities, along with the authorities specified in first part of this article, also make decisions on the use of resources of the reserve funds of the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities, respectively.

Council of Ministers of the Republic of Karakalpakstan, hokims of regions and city of Tashkent, districts and cities, along with the authorities specified in first and second parts of this article, also provide for media coverage of the process of reviewing and approving by the Jokargy Kenes of the Republic of Karakalpakstan, Kengashes of people's deputies of regions and city of Tashkent, districts and cities of the parameters of local budgets and reports on their implementation.

The Council of Ministers of the Republic of Karakalpakstan, khokims of regions and the city of Tashkent send to the Accounts Chamber of the Republic of Uzbekistan:

for consideration and submission of the relevant conclusion, draft budgets of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent for the next year;

to conduct an external audit and evaluation of the annual budget performance report of the Republic of Karakalpakstan, local budgets of the regions and the city of Tashkent for the past financial year.

Council of Ministers of the Republic of Karakalpakstan, hokims of regions and city of Tashkent, districts and cities may have other budget authorities in accordance with the legislation.

Ministry of finance of the Republic of Uzbekistan:

approves the list of territorial administrators of budgetary funds of the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent, budgets of districts and cities;

develops a draft law on State budget and a budget message;

reviews draft budgets of state trust funds, as well as revenues and expenditures of the Fund for Reconstruction and Development of the Republic of Uzbekistan;

submits for consideration by the Cabinet of Ministers of the Republic of Uzbekistan a draft law on State budget and a budget message;

informs, on a quarterly basis, the State Tax Committee and the State Customs Committee of the Republic of Uzbekistan on State budget revenues forecast;

provides to first and second level spending units methodological instructions on the allocation of budgetary appropriations provided to them, as well as on preparation of estimates of expenditures for the following year;

develops and approves a collection of unified methodological manuals (circular) on the process of preparing a medium-term budget in two stages (drafting and preparation), as well as the procedure for updating and revising the maximum amounts of budget allocations allocated during the formation of the State budget;

based on the proposals of the first-level budget managers, within a month from the date of adoption of the Law on the State Budget, submits for approval to the Cabinet of Ministers of the Republic of Uzbekistan the maximum amounts of budget allocations for second-level budget managers within the approved allocations allocated from the republican budget of the Republic of Uzbekistan for first-level budget managers;

based on the proposals of the first-level budget managers, submits proposals for amendments to the approved budget allocations for second-level budget managers for approval to the Cabinet of Ministers of the Republic of Uzbekistan;

approves the list of territorial administrators of budgetary funds of the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent, budgets of districts and cities;

sends recommendations on the preparation of draft local budgets to the Council of Ministers of the Republic of Karakalpakstan, regional khokimiyats and the city of Tashkent;

registers estimates of expenditures and consolidated estimates of expenditures and staffing tables of first and second level spending units, as well as changes made to them;

introduces changes to the list of expenditures of the republican budget of the Republic of Uzbekistan during the financial year as prescribed by article 145 of this Code;

submits to the Cabinet of Ministers of the Republic of Uzbekistan proposals on amendments to allocations from the republican budget of the Republic of Uzbekistan and the budgets of state trust funds as prescribed by articles 145 and 149 of this Code;

monitors the completeness and timeliness of receipts of taxes and other compulsory payments across their sources;

monitors the targeted use of funds of budgets of the budget system;

approves forms and procedure for submitting reports on the execution of the budget of the Republic of Karakalpakstan, local budgets of regions and city of Tashkent, as well as financial statements of budget organizations and recipients of budget funds;

submits to the Cabinet of Ministers of the Republic of Uzbekistan a report on the execution of State budget and budgets of state trust funds for the relevant period;

establishes reserves on special extra-budgetary accounts;

identifies additional reserves to increase revenues to State budget in the process of its execution;

optimizes expenditures of budget organizations and recipients of budget funds;

provides budget loans;

registers contracts and state guarantees of the Republic of Uzbekistan on public borrowings;

keeps record of and monitors public debt;

conducts cash execution of budgets of the budget system;

manages the funds of budgets of the budget system on the Single treasury account and other bank accounts;

registers contracts of budget organizations and recipients of budget funds concluded with suppliers of goods (works, services);

makes payments on behalf and by order of legal entities or individuals, for which funds are provided in budgets of the budget system;

conducts budgetary accounting of the execution of budgets of the budget system and receives budget reporting;

provides servicing of the state debt, fulfills the state guarantee;

keeps records of humanitarian aid and technical assistance funds provided to the Republic of Uzbekistan;

provides public discussion of draft State budgets and budgets of state trust funds for the forecast year and budget guidelines for the next two years, as well as reports on the execution of the State budget and budgets of state trust funds before their submission to the chambers of the Oliy Majlis of the Republic of Uzbekistan;

conducts financial and economic examination of normative-legal acts impacting the equilibrium of revenues and expenditures of budgets of the budget system;

adopts normative-legal acts on issues within its competence.

Ministry of finance of the Republic of Uzbekistan may have other budget authorities in accordance with the legislation.

Territorial financial authorities:

draw up drafts of the budget of the Republic of Karakalpakstan, local budgets of regions and city of Tashkent, budgets of districts and cities and submit them for consideration, respectively, to the Council of Ministers of the Republic of Karakalpakstan, hokimiyats of regions and city of Tashkent, districts and cities;

monitor the completeness and timeliness of receipts of taxes and other compulsory payments across their sources;

identify additional reserves to increase revenues to relevant budgets in the course of their execution;

inform budget organizations and recipients of budget funds on the amounts of budget allocations provided for them;

register estimates of expenditures and staffing tables of budget organizations and estimates of expenditures of recipients of budget funds, as well as changes made to them;

make changes to the parameters of the respective budgets during the financial year, as prescribed by articles 146 — 148 of this Code;

monitor the targeted use of funds of the respective budgets;

submit quarterly reports on the implementation of the corresponding budgets to the higher financial authorities and the Council of Ministers of the Republic of Karakalpakstan, hokimiyats of regions and city of Tashkent, districts and cities;

optimize expenditures of budget organizations and recipients of budget funds;

conduct budgetary accounting of the execution of the respective budgets and receive budget reporting;

carry out financial and economic examination of normative-legal acts of local government bodies that affect the equilibrium of revenues and expenditures of the respective budgets.

Ministry of finance of the Republic of Karakalpakstan, financial departments of hokimiyats of regions and city of Tashkent, along with authorities, specified in first part of this article, also:

inform, on a quarterly basis, the state tax and customs authorities on the forecast of state budget revenues for the corresponding administrative-territorial units;

provide budget loans.

Territorial financial authorities may also have other budget authorities in accordance with the legislation.

Spending units:

submit to Ministry of finance of the Republic of Uzbekistan budget requests for budgetary appropriations;

inform subordinate organizations on indicators and materials required for drawing up budget requests;

inform subordinate organizations on the volumes of their budgetary allocations for the corresponding financial year to draw up estimates of expenditures and staffing tables;

register estimates of expenditures and staffing tables of subordinate organizations, as well as changes made to them;

submit to Ministry of finance of the Republic of Uzbekistan approved estimates of expenditures and consolidated estimates of expenditures and staffing tables, as well as changes made to them, for registration;

notify subordinate organizations about changes in estimates of expenditures and staffing tables;

provide organization and control over budgetary accounting in subordinate organizations;

receive financial statements from subordinate organizations;

submit to Ministry of finance of the Republic of Uzbekistan consolidated financial statements for relevant periods.

Spending units may have other budget authorities in accordance with the legislation.

Budget authorities of budget organizations and recipients of budget funds:

submit a budget request to a spending unit, and in the absence of the spending unit — to the corresponding territorial financial authority in accordance with the procedure established by article 89 of this Code;

approve estimates of expenditures and submit them to a spending unit, and in the absence of the spending unit — to the corresponding territorial financial authority for registration within the limits of budgetary appropriations;

manage the budgetary allocations provided in accordance with estimates of expenditures in compliance to their intended purpose;

conclude contracts with suppliers of goods (works, services) within the limits of budgetary allocations;

make changes to the estimates of expenditures in the manner prescribed by article 150 of this Code;

submit financial statements for the relevant period to a spending unit, and in the absence of the spending unit — to the corresponding territorial financial authority.

Budget organizations, along with authorities specified in first part of this article, also:

approve staffing tables and submit them to a spending unit, and in the absence of the spending unit — to the corresponding territorial financial authority for registration within the limits of budgetary allocations;

make changes to the staffing tables in the manner prescribed by article 150 of this Code;

in order to prevent overdue receivables and payables, submit, on a timely manner, relevant documents to the courts and treasury departments, and also ensure the fulfillment of contractual obligations;

conduct budgetary accounting and prepare financial statements;

form and use extra-budgetary funds of budget organizations.

Budget organizations and recipients of budget funds may have other budget authorities in accordance with the legislation.

Spending units of state trust funds:

prepare and submit to Ministry of finance of the Republic of Uzbekistan draft budgets of state trust funds;

register estimates of expenditures on funds of state trust funds, as well as changes made to them;

inform, on a quarterly basis, the state tax and customs authorities on the forecast of budget revenues of state trust funds;

prepare and submit to the Cabinet of Ministers of the Republic of Uzbekistan proposals on amendments to budgets of state trust funds in the manner prescribed by article 149 of this Code;

monitor the completeness and timeliness of receipts to state trust funds of compulsory payments and other receipts;

submit to Ministry of finance of the Republic of Uzbekistan reports on the execution of budgets of state trust funds for the relevant period;

monitor the targeted use of state trust funds;

identify additional reserves for increasing revenues in the process of executing budgets of state trust funds;

optimize the expenditures of state trust funds;

manage resources of state trust funds on the Single treasury account and other bank accounts;

conduct budgetary accounting of the execution of budgets of state trust funds;

carry out financial and economic examination of normative-legal acts impacting the equilibrium of revenues and expenditures of budgets of state trust funds.

Spending units of state trust funds may also have other budget authorities in accordance with the legislation.

State budget consists of budgets of the following levels:

republican budget of the Republic of Uzbekistan;

budget of the Republic of Karakalpakstan, local budgets of regions and city of Tashkent.

Structure of the budget of the Republic of Karakalpakstan includes the republican budget of the Republic of Karakalpakstan, budgets of districts and cities of the Republic of Karakalpakstan.

Structure of local budgets of regions includes regional budgets and budgets of districts and cities of the relevant regions.

Structure of local budget of city of Tashkent includes the city budget and budgets of the districts that make up the city.

State trust funds are created to carry out government functions, the funds of which are generated from deductions from taxes, mandatory payments and fines, sponsorship funds and other income established by decisions of the President of the Republic of Uzbekistan and the Cabinet of Ministers of the Republic of Uzbekistan, as well as budget transfers and subsidies.

State trust funds are created by decisions of the President of the Republic of Uzbekistan.

State trust funds can be created in the form of a legal entity or without the formation of a legal entity, including under ministries, and departments.

Extra-budgetary funds of budget organizations are:

Development funds of budget organizations;

Fund for material incentives and development of healthcare organizations;

extra-budgetary funds of ministries and departments;

extra-budgetary funds of budget organizations generated from charged fees.

Consolidated budget of the Republic of Uzbekistan is compiled by the Ministry of finance of the Republic of Uzbekistan based on the results of the financial year for analytical purposes and accounting for all receipts and expenditures of the budgets of the budget system and funds of the Fund for Reconstruction and Development of the Republic of Uzbekistan, excluding transfers between them.

Components of Consolidated budget of the Republic of Uzbekistan include:

State budget;

budgets of state trust funds;

extra-budgetary funds of budgetary organizations;

funds of the Fund for Reconstruction and Development of the Republic of Uzbekistan.

It is not allowed to create funds that are formed at the expense of the consolidated budget of the Republic of Uzbekistan, but are not part of it.

Fund for Reconstruction and Development of the Republic of Uzbekistan is a financial institution under the Cabinet of Ministers of the Republic of Uzbekistan that accumulates funds specified by this Code to finance priority investment projects and projects for modernization and technical re-equipment of the basic sectors of the economy in order to ensure a dynamic, sustainable and balanced socio-economic development of the country, as well as the implementation of effective structural and investment policies.

Highest governing body of the Fund for Reconstruction and Development of the Republic of Uzbekistan is the Management council of the Fund for Reconstruction and Development of the Republic of Uzbekistan, the composition of which is determined by the decision of the President of the Republic of Uzbekistan.

Executive body and administrator of the resources of the Fund for Reconstruction and Development of the Republic of Uzbekistan is the Executive directorate of the Fund for Reconstruction and Development of the Republic of Uzbekistan.

Executive directorate of the Fund for Reconstruction and Development of the Republic of Uzbekistan submits to the Chamber of accounts and Ministry of finance of the Republic of Uzbekistan:

annually, by July 1, draft of revenues and expenditures of the Fund for Reconstruction and Development of the Republic of Uzbekistan for the upcoming year;

quarterly, by the 25th day of the month following the reporting quarter, a report on the execution of revenues and expenditures of the Fund for Reconstruction and Development of the Republic of Uzbekistan.

Revenues of the Fund for Reconstruction and Development of the Republic of Uzbekistan are generated from:

proceeds from the excess of world prices for strategic resources over the cut-off prices established by the decisions of the President of the Republic of Uzbekistan in the framework of approving the forecast of key macroeconomic indicators and parameters of State budget;

income from management of assets of the Fund for Reconstruction and Development of the Republic of Uzbekistan, including from investment of clear balances of funds of the Fund for Reconstruction and Development of the Republic of Uzbekistan;

other sources in accordance with the legislation.

Resources of the Fund for Reconstruction and Development of the Republic of Uzbekistan are formed in foreign currency on its accounts opened in Central Bank of the Republic of Uzbekistan.

Central Bank of the Republic of Uzbekistan converts funds in national currency received on the accounts of the Fund for Reconstruction and Development of the Republic of Uzbekistan into foreign currency at the current rate of Central Bank of the Republic of Uzbekistan as of the date of receipt of funds with their subsequent crediting to its foreign currency account.

Resources of the Fund for Reconstruction and Development of the Republic of Uzbekistan are used for:

financing investment projects included in state development programs;

provision of concessional loans to finance projects on the development and reconstruction of industrial infrastructure for the subsequent development of new industrial production;

investing in the authorized capital of newly created financial institutions and strategic enterprises with foreign investments in the main sectors of the economy;

advanced repayment of obligations to international financial institutions and foreign creditors on public external borrowings;

within the framework of programs approved by the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan, modernization, technical and technological re-equipment, accelerated financing and implementation of investment projects through credit lines in foreign currency opened for commercial banks;

financing the development of preliminary or final feasibility studies of individual projects on a grant basis or through the provision of interest-free loans;

provision, in accordance with approved state programs, of concessional loans for the procurement of new modern foreign technologies, machinery and equipment and other strategic goods;

grant financing of national socially important state programs and projects aimed at formation of production and non-production infrastructure;

co-financing, jointly with commercial banks, of investment programs (business plans) of borrowing enterprises, including those aimed at technically re-equipping production, increasing the utilization of production capacity, increasing the rate of production of competitive products and their export, ensuring the growth of value addition;

covering expenses related to operations of the executive office and management of the Fund for Reconstruction and Development of the Republic of Uzbekistan.

Revenues of State budget are formed from:

taxes and other compulsory payments;

proceeds from allocation, provision for use and sale of state assets;

funds transferred to the state by inheritance, donation;

gratuitous cash receipts from legal entities and individuals, as well as foreign states;

payments for the return of funds from budget loans, lines of credit and loans provided to resident legal entities and loans issued to foreign states, as well as interest income on them;

other revenues in accordance with the law.

Revenues of the republican budget of the Republic of Uzbekistan are formed from:

1) national taxes, including:

corporate income tax;

single tax payment;

personal income tax;

value added tax;

excise tax;

subsoil use tax;

2) customs duties;

3) excess profit tax;

4) other revenues. Other revenues include state duties, fees, reimbursements, compensation payments, penalties and proceeds from the sale of property converted into state income, income from the placement and provision of state assets for use according to established standards, funds transferred to state ownership by right of inheritance, donations, gratuitous cash receipts from legal entities and individuals, as well as foreign states, payments for repayment of budget loans issued to legal entities — to residents, loans granted to foreign states, dividends (income) on the state share of stocks, except for dividends (income) on the share of local government authorities, the state's share in profitable products under production sharing agreements, profits of the Central Bank of the Republic of Uzbekistan and other income directed to the republican budget of the Republic of Uzbekistan in accordance with the law.

Revenues of the budget of the Republic of Karakalpakstan, local budgets of regions and city of Tashkent are formed from:

1) in accordance with established standards:

income tax;

personal income tax;

excise tax;

tax for the use of mineral resources (except for the tax for the use of mineral resources for construction materials);

2) tax for the use of water resources;

3) property tax;

4) land tax;

5) tax for the use of mineral resources for construction materials;

6) turnover tax;

7) gratuitous cash receipts from legal entities and individuals, as well as foreign states;

8) a fee for the purchase and (or) temporary importation of motor vehicles into the territory of the Republic of Uzbekistan;

9) other revenues. Other revenues include proceeds from the sale of property converted into state income, income from the placement, provision for use and sale of state assets according to established standards, state duties, fees, compensation and penalties, proceeds from the sale of ownerless property, property transferred by right inheritance to the state, treasures that are rightfully subject to conversion to state income, dividends (income) on the share of local government bodies and other income sent to the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent in accordance with legislation.

Interbudgetary transfers allocated from the republican budget of the Republic of Uzbekistan are considered revenues of the republican budget of the Republic of Karakalpakstan, regional budgets of regions and the city budget of the city of Tashkent.

Individual taxes and other revenues received by the republican budget of the Republic of Uzbekistan may be distributed to the republican budget of the Republic of Karakalpakstan, regional budgets of regions, the city budget of the city of Tashkent in the amounts and in the manner prescribed by law.

Taxes and other revenues in accordance with established standards may be redistributed between the republican budget of the Republic of Karakalpakstan, the regional budgets of the regions, the city budget of the city of Tashkent and the budgets of districts and cities.

Revenues of Development funds of budget organizations are formed from:

saved-up funds of estimate of expenditures as of the last business day of the reporting quarter, with the exception of funds provided for financing capital investments;

income from the sale of goods (works, services) by activity profile;

part of the funds received from the lease of property recorded on the balance sheet of a budget organization;

funds left in the prescribed manner at the disposal of budget organizations;

funds received from charity.

Revenues to Development funds of budget organizations from the sale of goods (works, services) by budget organizations are defined as a positive difference between the proceeds from sales and the costs of producing goods (works, services).

Revenues of Fund for material incentives and development of healthcare organizations are formed from:

budget allocations in the amount of up to 5 percent of the total amount allocated to a healthcare organization;

income from the sale of goods (works, services) by activity profile;

saved-up funds of estimate of expenditures as of the last business day of the reporting quarter, with the exception of funds provided for financing capital investments;

part of the funds received from the lease of property recorded on the balance sheet of a healthcare organization;

funds left in the prescribed manner at the disposal of budget organizations;

funds received from charity.

Revenues to Fund for material incentives and development of healthcare organizations from the sale of goods (works, services) by healthcare organizations are defined as a positive difference between the proceeds from sales and the cost of producing goods (works, services).

Revenues of extra-budgetary funds of ministries and departments are generated in the prescribed manner from deductions from state duties, fees and non-tax payments, administrative fines and financial sanctions.

Budget organizations generate extra-budgetary funds from fees charged:

for teaching pupils in children's music and art schools and out-of-school state educational institutions;

for the education of pupils in children's music and art schools and state additional education institutions;

for training in higher and secondary specialized professional state educational institutions;

for meals provided to patients being treated in inpatient medical and prophylactic institutions;

other fees in accordance with the legislation.

Amounts, procedure for payment and use of charged fees, as well as reduced payments on charged fees are established by law.

Non-repayable aid is provided in the form of humanitarian aid and technical assistance funds.

Humanitarian aid is granted in order to provide medical and social assistance to socially vulnerable groups of the population, support social institutions, prevent and eliminate the consequences of natural disasters, accidents and catastrophes, epidemics, epizootics and other emergencies in the form of medicines and medical products, food, consumer goods, other goods, including equipment, means of transport and machinery, as well as voluntary donations, performed works and rendered services, including transportation, escort and storage of humanitarian aid. Tobacco products, alcoholic beverages, military goods, as well as goods prohibited for import cannot be classified as humanitarian aid.

Technical assistance funds are provided in the form of grants in kind and in cash for the purchase of equipment and technologies, for carrying out research and development work, scientific or other research, treatment, training, advanced training and retraining of personnel, for provision of consulting services and other purposes in accordance with legislation.

Recipients of humanitarian aid and technical assistance funds can be the Republic of Uzbekistan, the Government of the Republic of Uzbekistan, non-state non-profit organizations, self-government bodies of citizens, as well as legal entities and individuals whose activities are not aimed at generating profit.

Use for commercial purposes of goods received in the Republic of Uzbekistan under non-repayable aid is prohibited.

Whether funds, goods, works and services constitute non-repayable aid is determined by the procedure prescribed by the Cabinet of Ministers of the Republic of Uzbekistan.

Annually, by July 1, territorial and sectoral commissions for humanitarian aid send proposals on attracting humanitarian aid to Ministry of finance of the Republic of Uzbekistan.

Ministry of finance of the Republic of Uzbekistan, on the basis of proposals from territorial and sectoral commissions on humanitarian aid, no later than July 31, submits a consolidated request for humanitarian aid for the following year for approval by the Cabinet of Ministers of the Republic of Uzbekistan.

Attraction of humanitarian aid is carried out on the basis of a consolidated request for humanitarian aid approved by the Cabinet of Ministers of the Republic of Uzbekistan.

List of priority technical assistance projects for the following year is drawn up by Ministry of economy of the Republic of Uzbekistan by May 31 of the current year based on proposals from ministries, and departments, the Council of Ministers of the Republic of Karakalpakstan, hokimiyats of regions and city of Tashkent (project initiators) and is submitted for approval to the Cabinet of Ministers of the Republic Uzbekistan.

Technical assistance for the following year is worked out with donors on the basis of the list of priority technical assistance projects approved by the Cabinet of Ministers of the Republic of Uzbekistan.

Implementation of the list of priority technical assistance projects worked out with donors is approved by the Cabinet of Ministers of the Republic of Uzbekistan by February 10 of the following year.

Recipients of non-repayable aid are responsible for:

coordinating with the Cabinet of Ministers of the Republic of Uzbekistan and the relevant ministries and departments agreements on non-repayable aid projects with donors and timely fulfillment of the obligations assumed under them;

ensuring targeted and efficient use of the received non-repayable aid;

ensuring that received non-repayable aid is reflected in the accounting and reporting;

timely customs clearance of goods received under non-repayable aid;

submitting report on the receipt and use of non-repayable aid.

Recipients of technical assistance funds, along with the responsibilities specified in first part of this article, are also responsible for:

submitting for approval by the Cabinet of Ministers of the Republic of Uzbekistan of an action plan for implementation of a technical assistance project and a schedule for its development;

opening special accounts in authorized banks for receiving technical assistance funds;

submitting to Ministry of finance of the Republic of Uzbekistan the final report on the implementation of the technical assistance project.

Decision on the provision of non-repayable aid by the Republic of Uzbekistan is made by the President of the Republic of Uzbekistan.

Authorized body that provided non-repayable aid on behalf of the Republic of Uzbekistan, by March 1 of the year following the reporting year, submits financial statements to Ministry of finance of the Republic of Uzbekistan.

Expenditure side of State budget consists of:

expenditures on social sphere and social support of the population;

expenditures for state support of non-governmental non-profit organizations and other civil society institutions;

expenditures on the economy;

expenditures on financing centralized investments;

expenditures for maintenance of bodies of state authority and management, justice and procuracy authorities;

expenditures for maintenance of courts;

expenditures for maintenance of citizens' self-government bodies;

other expenditures.

Expenditure side of State budget takes into account reserve funds of the Cabinet of Ministers of the Republic of Uzbekistan, republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities.

The following expenditures are carried out from the republican budget of the Republic of Uzbekistan:

1) on social sphere and social support of the population, including expenditures on:

Expenditures for the maintenance of pre-school education, general secondary education, secondary specialized, professional education, higher education, post-higher education, additional education, personnel advancement and retraining organizations, children's homes, institutions providing information and methodological support to state educational organizations, state educational organizations under the jurisdiction of ministries and agencies, and other auxiliary institutions, as well as the expenses for education system activities provided for by the legislation to be financed from the Republican Budget of the Republic of Uzbekistan;

maintenance of the republican center for emergency medical care, the republican AIDS center, State sanitary and epidemiological surveillance, prevention of quarantined and especially dangerous infections, clinics of research institutes and state higher educational institutions, republican institutions of blood banking and forensic medical examination, other medical and prophylactic institutions and support institutions subordinated to republican ministries and departments, as well as payment for services, financing of which, as prescribed by legislation, is provided from the republican budget of the Republic of Uzbekistan;

reimbursement of costs (subsidies) of republican specialized centers for medical services rendered by them in accordance with the legislation to certain categories of citizens;

implementation of measures aimed at protecting health of citizens — in accordance with the adopted state programs;

maintenance of cultural, physical training and sports institutions subordinated to republican ministries and departments, maintenance and payment for services on creation and distribution of television and radio programs, maintenance of mass media on certain government decisions, creation of films and video products, restoration work at cultural heritage sites , targeted activities aimed at developing culture and sports in accordance with the approved calendar plans, financing of which, as prescribed by legislation, is provided from the republican budget of the Republic of Uzbekistan;

scientific and technical projects implemented under grants within the framework of state scientific and technical programs of fundamental and applied research and innovative work, maintenance of unique scientific objects and institutions serving science, examination of scientific projects and certain scientific activities, carried out, in accordance with the legislation, at the expense of the republican budget of the Republic of Uzbekistan;

maintenance of state archives;

maintenance of care houses and sanatoriums for war and labor veterans, institutions of social protection of the population subordinated to republican ministries and departments, as well as targeted measures for social protection of the population, financing of which, as prescribed by legislation, is provided from the republican budget of the Republic of Uzbekistan;

payment of one-off state monetary awards and prizes in connection with the awarded state decorations and prizes;

allocation of funds to the authorized body for the payment of benefits to persons with disabilities since childhood and at the birth of a child, compensation established by law for certain categories of persons;

social support of persons who participated in the liquidation of the consequences of the Chernobyl NPP accident, and persons of retirement age who served in radiation-nuclear facilities, payment of benefits and compensations established by law for certain categories of persons, financing of public works;

2) on state support of the activities of non-state non-profit organizations and other institutions of civil society in the form of state grants, subsidies and social service procurement;

3) on the economy, including:

expenditures of republican control bodies in the field of agro-industrial complex and food security, water and forestry, costs of payment for services and maintenance of institutions for combating pests of agricultural crops;

expenditures on financial support to farms producing agricultural products for state needs on low-yielding lands;

budget appropriations corresponding to receipts from single land tax paid by agricultural producers, and targeted budget appropriations within the limits of the annually approved main parameters of the Irrigated land reclamation fund under the Cabinet of Ministers of the Republic of Uzbekistan;

expenditures on standardization and certification, topographic, geodetic, cartographic, cadastral, and geological surveys, maintaining the state urban planning cadastre, payment for use of land for a fee in neighboring states, maintaining institutions of the hydrometeorological service, financing of which, as prescribed by legislation, is provided from the republican budget of the Republic of Uzbekistan;

expenditures related to ensuring the protection of the environment and landscapes, protection of biodiversity;

expenditures on the development of drinking water supply systems through the fund for Development of water supply and sewerage systems.

4) on financing centralized investments, the employers of which are republican ministries and departments;

5) on maintenance of bodies of state authority and management, justice and procuracy authorities, including:

Chambers of the Oliy Majlis of the Republic of Uzbekistan;

Administration of the President of the Republic of Uzbekistan;

Cabinet of Ministers of the Republic of Uzbekistan;

Constitutional Court of the Republic of Uzbekistan;

Central Election Committee of the Republic of Uzbekistan;

The Office of the Commissioner of the Oliy Majlis of the Republic of Uzbekistan for Human Rights (Ombudsman);

bodies of state administration, which are financed, as prescribed by legislation, from the republican budget of the Republic of Uzbekistan;

institutions of the Republic of Uzbekistan abroad;

justice and procuracy authorities.

6) on maintaining the courts;

7) on formation of the reserve fund of the Cabinet of Ministers of the Republic of Uzbekistan;

8) other expenditures:

funds allocated to political parties to finance their charter activities;

refunding of value added tax as prescribed by law;

expenditures on payment of membership fees and participation in financing of international organizations, of which the Republic of Uzbekistan is a member;

expenses associated with servicing the public debt and fulfilling the state guarantee;

payment for state ordered statistical work;

expenditures of the Central election committee of the Republic of Uzbekistan on preparation and conduct of elections and referendums, including financing of district and territorial election committees, political parties;

expenditures related to formation, maintenance and renewal of state and strategic reserves;

funds allocated for defense, ensuring public order and security, to customs authorities, including expenses for pensions and benefits to persons who have served in military service, service in internal affairs bodies, the National Guard of the Republic of Uzbekistan, customs authorities, and their families, as well as institutions, organizations and departments whose activities are financed from the republican budget of the Republic Uzbekistan in accordance with the legislation;

other expenditures in accordance with the legislation.

Republican budget of the Republic of Uzbekistan can allocate, according to the established procedure:

subventions, transferred revenues, subsidies and targeted social transfers to the budget of the Republic of Karakalpakstan, local budgets of regions and city of Tashkent;

budget loans and subsidies to state trust funds;

budget loans and credit lines to legal entities and loans to foreign countries.

The following expenditures are carried out from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent:

1) on social sphere and social support of the population, including expenditures on:

expenditures for the maintenance of general secondary education, additional education, pedagogical personnel advancement and retraining, and other auxiliary and methodological education institutions;

maintenance of orphanages, state children's communities, support services and targeted activities in the education sector, financing of which, as prescribed by legislation, is provided from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent;

maintenance of a branch of the Republican Center for Emergency Medical Care, multidisciplinary and specialized medical centers, specialized hospitals and dispensaries, maternity hospitals and obstetric centers, medical diagnostic centers and territorial departments of sanitary-epidemiological welfare and public health, blood service and forensic medical examination institutions, a branch of the Institute of health and medical statistics, other treatment and preventive institutions and auxiliary organizations of medical and social expert commissions subordinate to the territorial health authorities, as well as payment for services, financing of which is provided for by legislation from the republican budget of the Republic of Karakalpakstan, regional budgets of the regions and the city budget of the city of Tashkent;

implementation of measures aimed at protecting the health of citizens - in accordance with the adopted state programs;

maintenance of cultural, physical training and sports institutions subordinated to the territorial authorities of culture, physical training and sports, as well as targeted measures for the development of culture and sports;

maintenance of archives of the Council of Ministers of the Republic of Karakalpakstan, hokimiyats of regions and city of Tashkent;

maintenance of residential care homes, boarding houses and sanatoriums for the elderly and persons with disabilities, rehabilitation centers for persons with disabilities subordinated to the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of regions and the city of Tashkent, other institutions, as well as targeted measures for social protection of the population;

compensation for losses to urban passenger transport in connection with the provision of services for the carriage of passengers and baggage at cap rates, as well as reduced transportation tariffs for certain categories of citizens;

social benefits and material assistance to low-income families and material assistance to families affected by natural disasters.

2) on the economy, including expenditures on:

maintenance of agricultural organizations, including payment for services of institutions on the fight against animal diseases, work on land reclamation, as well as maintenance of water management organizations;

repair work carried out by housing and utilities infrastructure facilities;

maintenance of specified technical sections of waterways;

improvement of settlements;

covering losses of heat energy producers resulting from the application of reduced tariffs for heat supply services provided to the population;

maintenance of forestry plant quarantine as prescribed by law;

3) on financing centralized investments, the employers of which are the Council of Ministers of the Republic of Karakalpakstan, hokimiyats of regions and city of Tashkent;

4) on maintenance of bodies of local state authority and management, including:

Jokargy Kenes of the Republic of Karakalpakstan;

Council of Ministers of the Republic of Karakalpakstan, ministries, and departments of the Republic of Karakalpakstan, hokimiyats, administrations and departments of hokimiyats of regions and city of Tashkent and other territorial subdivisions of bodies of state authority, financing of which is provided from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of the city Tashkent;

5) on formation of reserve funds of the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent;

6) compensation for losses caused to legal entities and individuals in connection with the seizure of land for public needs, as well as as a result of illegal actions (inaction) of state bodies or officials of these bodies;

6¹) on implementation of measures and addressing the tasks assigned to the military-administrative sector;

6²) state support for the activities of non-governmental non-profit organizations and other civil society institutions in the form of state grants, subsidies and social order;

7) on organizations and activities that are financed from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent.

Budgetary loans, subsidies, subventions, revenues transfers and targeted social transfers from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent may be allocated to budgets of districts and cities.

The following expenditures are carried out from budgets of districts and cities:

1) on social sphere and social support of the population, including expenditures on:

expenditures for the maintenance of district (city) departments of public education and pre-school education departments, as well as the pre-school education organizations, general secondary education, and additional education institutions under their jurisdiction, and the expenses for education system activities provided for by the legislation to be financed from the district and city budgets;

maintenance of district medical associations, district central clinics and dispensaries without beds, treatment and preventive institutions, districts (cities) subordinate to medical associations, family clinics, rural medical centers, district (city) departments of sanitary and epidemiological welfare and public health;

implementation of measures aimed at protecting the health of citizens - in accordance with the adopted state programs;

maintenance of cultural institutions subordinated to district (city) departments of culture, physical training and sports institutions subordinated to district (city) departments of physical training and sports, as well as targeted activities for the development of culture, physical training and sports, children's schools of music and art;

home based social assistance, social support for persons who participated in the liquidation of the consequences of the accident at the Chernobyl NPP, and persons of retirement age who served at radiation-nuclear facilities;

payment of social benefits, financial assistance to low-income families, as well as financial assistance to families affected by natural disasters;

2) on the economy, including expenditures on:

To maintain the district and city departments for the development of veterinary and livestock farming, laboratories, and the state institutions of the “Water Supply Service”.

repair of streets in cities and other settlements, as well as inter-farm rural highways;

repair work carried out by housing and utilities infrastructure facilities;

improvement of settlements;

3) on maintenance of hokimiyats and departments of hokimiyats of districts and cities, as well as other territorial subdivisions of bodies of state authority, financing of which is provided from budgets of districts and cities;

4) on maintenance of citizens' self-government bodies;

5) on formation of reserve funds of budgets of districts and cities;

5¹) to finance events formed on the basis of public opinion;

6) others, including expenses of individual organizations and activities, financing of which, as prescribed by legislation, is provided from budgets of districts and cities.

Reserve funds of the Cabinet of Ministers of the Republic of Uzbekistan, republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities are established in order to ensure timely and uninterrupted financing during respective current year of additional and unforeseen expenditures in the economic, socio-cultural and other spheres.

Reserve funds of the Cabinet of Ministers of the Republic of Uzbekistan, republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities are formed from revenues received, respectively, by republican budget of the Republic of Uzbekistan, republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities.

The size of the reserve funds of the Cabinet of Ministers of the Republic of Uzbekistan, the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent is established when the draft law on the State Budget is adopted.

Sizes of reserve funds of the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities are determined during approval of parameters of the budget of the Republic of Karakalpakstan, local budgets of regions and city of Tashkent.

Spending units of reserve funds of the Cabinet of Ministers of the Republic of Uzbekistan, the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities are, respectively, the Cabinet of Ministers of the Republic of Uzbekistan, the Council of Ministers of the Republic of Karakalpakstan, hokims of regions and city of Tashkent, districts and cities.

Proposals on the use of resources of reserve funds of the Cabinet of Ministers of the Republic of Uzbekistan, the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities, preliminarily agreed with the financial authorities, are submitted in the prescribed manner by the initiators, respectively, to the Cabinet of Ministers of the Republic of Uzbekistan, the Council of Ministers Republic of Karakalpakstan, hokims of regions and city of Tashkent, districts and cities.

Resources of reserve funds of the Cabinet of Ministers of the Republic of Uzbekistan, the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities are used in accordance with the decisions, respectively, of the President of the Republic of Uzbekistan, the Cabinet of Ministers of the Republic of Uzbekistan, the Council of Ministers of the Republic of Karakalpakstan, hokims of regions and city of Tashkent, districts and cities for specified purposes and in the indicated amounts.

If State budget provides funds for the same purposes, for which it is proposed to allocate additional resources from reserve funds of the Cabinet of Ministers of the Republic of Uzbekistan, the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities, then proposals for the use of resources of the relevant reserve funds are submitted only after the amounts previously provided from the relevant budget have been spent.

If the activities, for which resources of reserve funds of the Cabinet of Ministers of the Republic of Uzbekistan, the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities were allocated, have certain periods, then the funds remaining unused after end of these respective periods are restored within ten working days to the appropriate reserve fund.

Budget funds allocated from reserve funds of the Cabinet of Ministers of the Republic of Uzbekistan, the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities and unused during the relevant financial year, are restored to the corresponding budgets at the end of the financial year.

Recipients of resources of reserve funds of the Cabinet of Ministers of the Republic of Uzbekistan, the republican budget of the Republic of Karakalpakstan, regional budgets of regions and city budget of city of Tashkent, budgets of districts and cities, on a quarterly basis, submit to Ministry of finance of the Republic of Uzbekistan and the relevant territorial financial authorities reports on the use of funds allocated from the corresponding reserve funds.

Resources of Development funds of budget organizations and Fund for material incentives and development of healthcare organizations are used for:

payment of temporary disability benefits and repayment of existing accounts payable;

measures to strengthen the material and technical base of budget organizations

material incentivizing of employees of budget organizations.

If a budget organization has unpaid temporary disability benefits and overdue accounts payable, resources of Development fund of a budget organization are spent primarily on paying off these debts.

Share of funds directed to areas specified in paragraphs three and four of first part of this article is determined by the decision of the Cabinet of Ministers of the Republic of Uzbekistan.

Entire amount of charity funds provided by legal entities and individuals to budget organizations, unless otherwise agreed by the benefactor, is spent on strengthening the material and technical base of budgetary organizations.

Resources of extra-budgetary funds of ministries and departments are used for:

strengthening the material and technical base;

material incentives for employees;

covering other expenses.

It is prohibited to maintain additional staff at the expense of extra-budgetary funds of ministries and departments, except for cases specified by the Cabinet of Ministers of the Republic of Uzbekistan.

Procedure for the formation and use of resources of extra-budgetary funds of ministries and departments is determined by the Cabinet of Ministers of the Republic of Uzbekistan.

Draft Law on State budget and budget guidelines for the next two years are developed on the basis of the priorities of socio-economic development and mid-term forecast of macroeconomic indicators.

Development of draft Law on State budget includes:

submission of the procedure for drawing up a budget request;

preparation and submission of budget requests and forecasts on key macroeconomic indicators;

review and summary of budget requests;

development of a budget message.

Bodies responsible for drawing up a draft of State budget are:

Ministry of finance of the Republic of Uzbekistan;

ministries and departments, local bodies of state authority responsible for drawing up drafts of budgets and providing information and data requested by Ministry of finance of the Republic of Uzbekistan.

Bodies responsible for drawing up drafts of budgets of state trust funds are spending units of state trust funds.

Budget request includes:

analytical report on the results achieved during previous year and the expected results for the current year, including quantitative and qualitative indicators of the activities of a budget organization, recipient of budget funds and spending unit related to the use of funds from budgets of the budget system;

register of expenditure obligations with indicated normative-legal acts, contracts and (or) their specific provisions serving as a basis for their introduction (execution) and specifying sources of funding and validity periods;

development program of a spending unit;

budget fund request for the upcoming period, drawn up in conjunction with a development program of a spending unit.

Together with a budget request, the Council of Ministers of the Republic of Karakalpakstan, hokimiyats of regions and city of Tashkent, spending units of state trust funds submit revenue forecasts for respective budgets and state trust funds for the upcoming period.

The procedure for drawing up a budget request for the State Budget, state trust funds and extra-budgetary funds of budgetary organizations is determined by the Ministry of Finance of the Republic of Uzbekistan.

Analytical report on the results achieved during previous year and the expected results for the current year is drawn up by a budget organization, recipient of budget funds and spending unit and is used to evaluate the activities of a budget organization, recipient of budget funds and spending unit and prepare proposals on the advisability of their further financing from budgets of the budget system.

Analytical report on the results achieved during previous year and the expected results for the current year includes information on key quantitative and qualitative indicators of results by each type of activity of a budget organization, recipient of budget funds and spending unit achieved during previous year and the expected results for the current year.

Analytical report on the results achieved during previous year and the expected results for the current year should be presented in a concise and clear form and should not contain special terms that may complicate its understanding by persons who do not have professional knowledge in the relevant field.

Register of expenditure obligations is a list of types of activities and measures implemented by a budget organization, recipient of budget funds and spending unit with indicated relevant act of legislation that constitute grounds for their financing from budgets of the budget system.

Register of expenditure obligations is drawn up by a budget organization, recipient of budget funds and spending unit for the analysis of the expenditures carried out by them regarding the expenditures' reasonability as per the budget classification.

Development program of a spending unit is drawn up by a spending unit for a period of at least three years and includes:

the main directions of development, goals, objectives, qualitative and quantitative indicators for the entire field of activity of the budget manager;

a set of interrelated legal, economic, social, organizational and technical measures aimed at achieving goals and objectives;

system of indicators of expected results with agreed deadlines and types that ensure the achievement of goals and objectives.

Development program of a spending unit is based on the goals and objectives determined by the laws of the Republic of Uzbekistan, decisions of the President of the Republic of Uzbekistan, Chambers of the Oliy Majlis of the Republic of Uzbekistan and the Cabinet of Ministers of the Republic of Uzbekistan.

Development program of a spending unit is approved by respective spending unit by agreement with the higher authority.

Budget fund request is drawn up by a budget organization, recipient of budget funds and spending unit.

Budget fund request drawn up by a budget organization or a recipient of budget funds is submitted to the relevant spending unit within the time period established by the spending unit, but no later than the date of submission of budget request to the relevant financial authority and the spending unit of the state trust fund.

Budget fund request reflects the expenditures at the expense of budgets of the budget system for the previous and current years and for the next three years in accordance with the budget classification.

Spending unit, based on budget fund requests of its subordinated budget organizations and recipients of budget funds, draws up a consolidated budget fund request.

Consolidated budget fund request of a spending unit is drawn up in conjunction with development program of respective spending unit.

Increase in the volume of expenditures in a budget fund request compared to previous years is allowed only if it is supported by legislative authority and if this increase is provided for in the development program of respective spending unit.

The fiscal strategy for the medium term (hereinafter referred to as the Fiscal Strategy) includes:

forecasts of macroeconomic indicators for the medium term;

the main directions of tax and budget policy for the medium term;

forecasts of revenues and expenditures of the Consolidated Budget of the Republic of Uzbekistan for the medium term, calculated on the basis of fiscal policy;

forecast of budget revenues for the next financial year and targets calculated on this basis for the next two years;

the forecast of budget expenditures for the next financial year and the targets calculated on the basis of this for the next two years;

forecasts of the primary surplus or primary deficit of the State budget;

analysis of fiscal risks.

To develop a Fiscal Strategy, the Ministry of Finance of the Republic of Uzbekistan is provided with:

The Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan — annually, until April 15, a preliminary assessment of macroeconomic indicators for the medium term in at least two scenarios;

managers of budget funds of the first level — annually, before May 1, preliminary proposals on the necessary funds, taking into account the list of funds being implemented in the medium term, as well as with the deadline for completing the activities, on capital investments for the design, construction (reconstruction) and equipment of facilities based on decisions made by the President of the Republic Uzbekistan and the Cabinet of Ministers of the Republic of Uzbekistan, as well as state programs;

managing bodies of state trust funds — annually, until May 1, forecasts of revenues and preliminary amounts of expenditures of state trust funds for the next medium-term period, as well as proposals for preliminary amounts of inter-budgetary transfers allocated from the republican budget of the Republic of Uzbekistan to provide the necessary funds for the implementation of activities implemented in the next medium-term period, as well as with the expiration date of events, based on decisions taken by the President of the Republic Uzbekistan and the Cabinet of Ministers of the Republic of Uzbekistan, as well as state programs;

by the Council of Ministers of the Republic of Karakalpakstan, the khokims of the regions and the city of Tashkent — annually until May 1, revenue forecasts, preliminary amounts of expenses (current expenses and capital investments for design, construction (reconstruction) and equipping facilities), as well as preliminary amounts of inter-budgetary transfers allocated from the republican budget of the Republic of Uzbekistan;

The State Tax Committee, the State Customs Committee of the Republic of Uzbekistan and other ministries, as well as departments — annually, until May 15, calculations based on forecasts of tax and customs revenues to the State Budget for the medium term based on the current fiscal policy.

When developing a Fiscal Strategy, the Ministry of Finance of the Republic of Uzbekistan, together with the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan, determines the maximum amounts of budget allocations allocated to first-level budget managers, as well as allocated to the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent for capital investments for design, construction (reconstruction) and equipping facilities, for subsequent the medium-term period.

The fiscal strategy is developed by the Ministry of Finance of the Republic of Uzbekistan.

Updated Fiscal Strategy for next year:

submitted by the Ministry of Finance of the Republic of Uzbekistan to the Cabinet of Ministers of the Republic of Uzbekistan before June 1 of the current year;

discussed and approved in the Cabinet of Ministers of the Republic of Uzbekistan before June 15 of the current year;

submitted after approval by the Cabinet of Ministers of the Republic of Uzbekistan for information to the Chambers of the Oliy Majlis of the Republic of Uzbekistan and published by the Ministry of Finance of the Republic of Uzbekistan on its official website.

Within five working days after the approval by the Cabinet of Ministers of the Republic of Uzbekistan of the Fiscal Strategy, the Ministry of Finance of the Republic of Uzbekistan for the next financial year brings to:

managers of first-level budget funds, budget organizations and recipients of budget funds financed from the republican budget of the Republic of Uzbekistan, as well as managers of second-level budget funds under the Administration of the President of the Republic of Uzbekistan, the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan and the Cabinet of Ministers of the Republic of Uzbekistan — the maximum amounts of budget allocations allocated from the republican budget of the Republic of Uzbekistan, as well as the maximum amounts of capital expenditures for design, construction (reconstruction) and equipping facilities;

The Council of Ministers of the Republic of Karakalpakstan, the khokimiyats of the regions and the city of Tashkent — the maximum amounts of inter-budgetary transfers allocated from the republican budget of the Republic of Uzbekistan to the budget of the Republic of Karakalpakstan, local budgets of the regions and the city of Tashkent, as well as the maximum amounts of expenditures on capital investments for the design, construction (reconstruction) and equipping of facilities;

the bodies of managers of state trust funds — the maximum amounts of inter-budgetary transfers allocated to state trust funds from the republican budget of the Republic of Uzbekistan.

Based on the limits provided by the Ministry of Finance of the Republic of Uzbekistan for inter-budgetary transfers for the next financial year allocated from the republican budget of the Republic of Uzbekistan, the Council of Ministers of the Republic of Karakalpakstan, the khokimiyats of the regions and the city of Tashkent make decisions within five working days on the preparation and establishment of deadlines for the provision of budget requests of the relevant budgets.

After making a decision on the preparation and establishment of deadlines for the provision of budget requests to the budget of the Republic of Karakalpakstan, local budgets of the regions and the city of Tashkent, the Ministry of Finance of the Republic of Karakalpakstan, the financial departments of the khokimiyats of the regions and the city of Tashkent bring to:

khokimiyats of districts and cities - the maximum amounts of interbudgetary transfers allocated from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and the city budget of the city of Tashkent;

territorial managers of budget funds financed from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and the city budget of the city of Tashkent — the maximum amounts of budget allocations for the next financial year.

The khokims of districts and cities, within three working days after receiving the maximum amounts of inter-budgetary transfers allocated from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and the city budget of Tashkent, make decisions on the preparation and establishment of deadlines for the provision of budget requests of the relevant budgets.

The financial departments of district and city khokimiyats, after receiving the relevant decisions on the preparation and setting of deadlines for the submission of budget requests of the corresponding budgets, bring the maximum amounts of budget allocations allocated for the next financial year to the territorial managers of budget funds financed from the budgets of districts and cities.

Consideration of budget requests is carried out:

territorial managers of budget funds financed from the budgets of districts and cities — financial departments of district and city khokimiyats;

territorial managers of budget funds financed from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and the city budget of the city of Tashkent, as well as for draft budgets of districts and cities - the Ministry of Finance of the Republic of Karakalpakstan, financial departments of khokimiyats of regions and the city of Tashkent;

budgetary organizations and recipients of budgetary funds subordinate to the managers of budgetary funds of the first level, as well as managers of budgetary funds of the second level, financed from the republican budget of the Republic of Uzbekistan — by the corresponding managers of budgetary funds of the first level;

capital investments for the design, construction (reconstruction) and equipment of facilities at the expense of the republican budget of the Republic of Karakalpakstan, regional budgets of the regions and the city budget of the city of Tashkent, as well as managers of first-level budget funds — the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan;

managers of first-level budget funds, budget projects of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent, as well as for projects of the Fund for Reconstruction and Development of the Republic of Uzbekistan and budgets of state trust funds — the Ministry of Finance of the Republic of Uzbekistan.

The Ministry of Finance of the Republic of Uzbekistan also considers:

budget requests for second-level budget managers under the Administration of the President of the Republic of Uzbekistan, the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan and the Cabinet of Ministers of the Republic of Uzbekistan;

budget requests for capital investments for design, construction (reconstruction) and equipment of facilities, summarized by the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan.

Budget requests for the next year are submitted before August 1 of the current year:

territorial managers of budget funds financed from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and the city budget of the city of Tashkent, budgets of districts and cities, to the relevant financial authorities;

managers of first-level budget funds, the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan for capital investments in the design, construction (reconstruction) and equipment of facilities financed from the republican budget of the Republic of Uzbekistan, as well as bodies managing state trust funds in the Ministry of Finance of the Republic of Uzbekistan.

The Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan submits updated forecasts of macroeconomic indicators for the medium term to the Ministry of Finance of the Republic of Uzbekistan by August 15 this year.

The State Tax Committee, the State Customs Committee of the Republic of Uzbekistan and other ministries and departments submit proposals on forecasting revenues of the State budget and state trust funds to the Ministry of Finance of the Republic of Uzbekistan and the managing bodies of state trust funds by August 20 of this year.

At the same time, the Ministry of Finance of the Republic of Uzbekistan, on the basis of prepared proposals for an updated forecast of revenues of the State budget and state trust funds based on updated forecasts of macroeconomic indicators for the next medium-term period, makes changes to:

the maximum size of budget allocations for the next financial year allocated to the managers of the budget funds of the first level;

the maximum expenditure limits of the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent, as well as managers of first-level budget funds for the next financial year for capital investments in the design, construction (reconstruction) and equipment of facilities;

maximum amounts of interbudgetary transfers allocated to the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent from the republican budget of the Republic of Uzbekistan for the next financial year;

maximum amounts of interbudgetary transfers allocated to state trust funds from the republican budget of the Republic of Uzbekistan for the next financial year.

In the process of considering budget requests, the Ministry of Finance of the Republic of Uzbekistan, within a month after receiving budget requests, sends notifications to:

managers of budget funds of the first level and bodies — managers of state trust funds — about changes made to the maximum amounts of allocated budget funds for the next financial year, reductions in expenses in the absence of grounds for their implementation, low socio-economic efficiency, insecurity of corresponding growth in budget revenues, and also on optimization of expenses in cases of decline in performance indicators of budgetary organizations and recipients of budgetary funds;

The Council of Ministers of the Republic of Karakalpakstan, regional khokimiyats, the city of Tashkent and the bodies managing state trust funds — on adjusting forecasts of income and expenditures of the relevant budgets and budgets of state trust funds in cases of unreasonable understatement or overestimation of these forecasts, as well as on the maximum amounts of interbudgetary transfers;

To the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan on changes made to the costs of capital investments for the design, construction (reconstruction) and equipping of objects of the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent, as well as managers of budget funds of the first level.

At the same time, the managers of the first level budget funds, the Council of Ministers of the Republic of Karakalpakstan, the khokimiyats of the regions, the city of Tashkent and the managing bodies of state trust funds, as well as capital investments for the design, construction (reconstruction) and equipping of facilities, the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan, after receiving written notifications from the Ministry of Finance of the Republic of Uzbekistan, are obliged to Submit updated budget requests within three working days, taking into account the comments indicated in these written notifications.

Drafts of the budget of the Republic of Karakalpakstan, local budgets of regions and city of Tashkent and budgets of state trust funds for next financial year are submitted:

by financial departments of district and city khokimiyats to the Ministry of Finance of the Republic of Karakalpakstan, financial departments of khokimiyats of regions and the city of Tashkent within the time limits established by the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of regions and the city of Tashkent, but no later than July 25 of the current year;

by Ministry of Finance of the Republic of Karakalpakstan, the financial departments of regional khokimiyats and the city of Tashkent, the bodies managing state trust funds to the Ministry of Finance of the Republic of Uzbekistan no later than August 1 of the current year.

Procedure for preparing draft budgets of state trust funds is determined by legislation.

Draft budgets of districts and cities are developed by the financial departments of district and city khokimiyats:

on revenues — based on proposals for forecasting income credited to the State budget, and other information provided by state tax inspectorates, departments of khokimiyats and other district and city divisions of government bodies in accordance with the forecast of macroeconomic indicators of economic development of the administrative-territorial unit;

based on the maximum amounts of inter-budgetary transfers allocated from the republican budget of the Republic of Karakalpakstan, regional budgets of regions and the city budget of Tashkent;

on expenses — based on budget requests from territorial administrators of budget funds financed from the budgets of districts and cities.

The draft budgets of the Republic of Karakalpakstan, the local budgets of the regions and the city of Tashkent are being developed by the Ministry of Finance of the Republic of Karakalpakstan, the financial departments of the khokimiyats of the regions and the city of Tashkent:

on revenues — based on proposals for forecasting income credited to the State budget, and other information provided by state tax departments and departments of khokimiyats, divisions of government bodies of the Republic of Karakalpakstan, regions and the city of Tashkent in accordance with the forecast of macroeconomic indicators of economic development of the administrative-territorial unit;

based on the maximum amounts of interbudgetary transfers allocated from the republican budget of the Republic of Uzbekistan;

on expenses — based on budget requests of territorial managers of budget funds financed from the republican budget of the Republic of Karakalpakstan, regional budgets of regions, the city budget of the city of Tashkent, and draft budgets of the corresponding districts and cities, as well as the projected amount of expenses for individual activities financed from the republican budget of the Republic Karakalpakstan, regional budgets of the regions and the city budget of the city of Tashkent.

It is not allowed to develop draft budgets of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent with a deficit.

The Council of Ministers of the Republic of Karakalpakstan, the khokimiyats of the regions and the city of Tashkent, districts and cities form appropriate budgets, providing primarily for the costs of wages and equivalent payments, for the purchase of food and medicines, as well as utilities.

The khokimiyats of districts and cities allocate funds equal to 5 percent of the approved expenditures of the budgets of districts and cities (with the exception of reserve funds of the budgets of districts and cities) to finance events formed on the basis of public opinion.

The khokimiyats of districts and cities allocate funds equal to 5 percent of the approved expenditures of the budgets of districts and cities (with the exception of funds from the reserve funds of the budgets of districts and cities) to finance activities based on public opinion.

Development of draft State budget is carried out by Ministry of finance of the Republic of Uzbekistan based on:

forecast on macroeconomic indicators;

forecast on State budget revenues by sources of their formation;

budget requests of managers of budgetary funds of the first level and the forecast volume of expenses for individual activities at the expense of the republican budget of the Republic of Uzbekistan;

drafts of budget of the Republic of Karakalpakstan, local budgets of regions and city of Tashkent.

In draft State budget, expenditures are provided based on the forecasted amount of revenues, taking into account the maximum size of State budget deficit with indicated sources of its coverage.

Draft State budget consists of:

forecast on revenues by sources of revenues and expenditures by areas of State budget in accordance with articles 50 and 69 of this Code;

maximum size of State budget deficit and sources of its coverage.

Drafts of budgets of state trust funds, developed by spending units of state trust funds, consist of forecast on revenues by sources of revenue and expenditures by areas.

It is not allowed to develop drafts of budgets of state trust funds with a deficit if the deficit is not covered by the remaining balances of state trust funds at the beginning of the year.

Budget message — a document that takes into account the achieved results and provides main directions of the country's socio-economic development for the upcoming period, based on which a draft Law on State budget is developed.

Budget message includes:

forecast of the main macroeconomic indicators for the medium term, used in the development of the draft Consolidated Budget of the Republic of Uzbekistan;

the forecast assessment of the execution of the Consolidated Budget of the Republic of Uzbekistan for the current year;

updated Fiscal strategy;

draft State budget and budgets of state trust funds, revenues and expenses of the Fund for Reconstruction and Development of the Republic of Uzbekistan for the forecast year and budget targets for the next two years;

the main directions, goals, objectives, qualitative and quantitative indicators of development by industry;

information on the state of public debt, as well as the annual maximum amount of borrowings attracted on behalf of the Republic of Uzbekistan and under the guarantee of the Republic of Uzbekistan.

Draft Law on State budget and budget message are submitted:

by Ministry of finance of the Republic of Uzbekistan to the Cabinet of Ministers of the Republic of Uzbekistan — by September 15 of current year;

by the Cabinet of Ministers of the Republic of Uzbekistan to the Administration of the President of the Republic of Uzbekistan — by September 20 of current year;

by the Cabinet of Ministers of the Republic of Uzbekistan for review and opinion to the Chamber of accounts of the Republic of Uzbekistan - by September 20 of current year. Chamber of accounts of the Republic of Uzbekistan submits the opinion on the draft Law on State budget and mid-term fiscal strategy to the Cabinet of Ministers of the Republic of Uzbekistan no later than October 5 of current year;

by the Cabinet of Ministers of the Republic of Uzbekistan to the Legislative chamber of the Oliy Majlis of the Republic of Uzbekistan — as a rule, no later than October 15 of current year together with the opinion of the Chamber of accounts of the Republic of Uzbekistan.

Budget message is also submitted by the Cabinet of Ministers of the Republic of Uzbekistan to the Senate of the Oliy Majlis of the Republic of Uzbekistan, as a rule, no later than October 15 of current year.

The draft law on the State Budget, the fiscal strategy for the medium term before they are sent to the Legislative Chamber of the Oliy Majlis, as well as reports on the execution of the State Budget and budgets of state trust funds are subject to mandatory public discussion before they are sent to the Chambers of the Oliy Majlis of the Republic of Uzbekistan, and in parallel, the information publication Budget for Citizens is published for public discussion, developed by the Ministry of Finance of the Republic of Uzbekistan.

The draft Law on State budget must be reviewed by the Legislative chamber of the Oliy Majlis of the Republic of Uzbekistan, as a rule, by November 15 of current year.

Law on State budget adopted by the Legislative chamber of the Oliy Majlis of the Republic of Uzbekistan shall be sent within five days from the date of its adoption to the Senate of the Oliy Majlis of the Republic of Uzbekistan for approval.

Law on State budget is approved by the Senate, as a rule, no later than December 15 of current year.

Draft budgets of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent for the next year:

sent by the Council of Ministers of the Republic of Karakalpakstan, regional khokimiyats and the city of Tashkent to the Accounts Chamber of the Republic of Uzbekistan for submission of the corresponding conclusion - before September 20 of the current year. The Accounts Chamber of the Republic of Uzbekistan, no later than October 1 of the current year, submits an opinion on the draft budget of the Republic of Karakalpakstan, local budgets of the regions and the city of Tashkent to the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of the regions and the city of Tashkent;

posted for public discussion by the Council of Ministers of the Republic of Karakalpakstan, regional khokimiyats and the city of Tashkent no later than October 10 of the current year;

they are reviewed on the basis of received reasonable proposals and comments based on the results of their public discussion and are submitted by the Council of Ministers of the Republic of Karakalpakstan, the khokimiyats of the regions and the city of Tashkent, respectively, to the Jokargy Kenes of the Republic of Karakalpakstan, the Kengashes of People's Deputies of the regions and the city of Tashkent, together with the conclusion of the Accounting Chamber of the Republic of Uzbekistan no later than October 25 of this year.

Within one week after the official publication of the Law on the State Budget, the Jokargy Kenes of the Republic of Karakalpakstan, the Kengashes of People's Deputies of the regions and the city of Tashkent, respectively, make decisions on the budget of the Republic of Karakalpakstan, local budgets of the regions and the city of Tashkent in accordance with the Law on the State Budget.

Draft budgets of districts and cities for the next year by khokimiyats of districts and cities:

posted for public discussion no later than October 10 of the current year;

reviewed on the basis of received reasonable proposals and comments based on the results of their public discussion and are submitted accordingly to the Kengashes of People's Deputies of districts and cities no later than November 1 of current year.

Within three working days after making decisions on the budget of the Republic of Karakalpakstan, the local budgets of the regions and the city of Tashkent, the Kengashes of People's deputies of districts and cities, respectively, make decisions on the budgets of districts and cities in accordance with these decisions.

Relevant decisions on the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent, districts and cities are posted by the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of regions and the city of Tashkent, districts and cities on their official websites within three working days after their adoption.

The Ministry of Finance of the Republic of Uzbekistan, after the official publication of the Law on the State Budget, brings to the notice of:

the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of regions and the city of Tashkent, the volumes of interbudgetary transfers to the budget of the Republic of Karakalpakstan, local budgets of regions and the city of Tashkent provided to them from the republican budget of the Republic of Uzbekistan — within three working days;

managers of budgetary funds of the first level, budgetary organizations and recipients of budgetary funds financed from the republican budget of the Republic of Uzbekistan, the volumes of budgetary allocations provided for them — within three working days;

The volume of income and expenses established for them by the managing bodies of state trust funds is within ten working days.