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LAW OF REPUBLIC OF UZBEKISTAN ON BUDGET SYSTEM
SECTION I. GENERAL CLAUSES
Article 1. Main Objectives of Present Law
The present Law shall determine:
Organizational and administrative foundations of the budget system of Uzbekistan;
Principles for composing the State budget of the Republic of Uzbekistan (the State Budget hereinafter) and its structure;
Procedures for preparation, consideration, approval and administration of the State budget,
including budgets of lower level governments;
Principles for raising revenues and allocating expenditures of the budget;
Relationship among the budgets within the structure of the State budgets;
Accounting, reporting and supervision procedures for performing operations with the State
budget funds.
Article 2. Legislation On Budget System
The legislation on budget system comprises this Law and other legislative acts.
If the international agreements signed by the Republic of Uzbekistan provide for rules other
than those specified in the legislation of the Republic of Uzbekistan on the budget system the
relevant provisions of international agreements shall prevail.
Article 3. Principal definitions
The following principle notions are used in this Law
Budgetary process means the process of preparation, consideration, approval and implementation of the State budget; supervision, preparation and approval of budget implementation reports; and interrelation among the budgets within the State budget
regulated with the relevant legislation acts.
Budget subsidy means gratuitous money allocated from an upper level budget to a lower level budget to cover the gap between the revenues and expenditures of the lower budget in case of insufficiency of own revenues and other means of budget regulation.
Budget appropriations means money allocated to budget organizations and other
beneficiaries from the State budget in accordance with the relevant legislation;
Budget surplus means excess amount of budget revenues over expenditures for a given period;
Budget loan means repayable funds allocated from an upper level budget to a lower level
budget- or from the republican budget to a legal resident entity or another foreign
state;
Budget subvention means gratuitous money allocated from an upper level budget to a lower
level budget on the condition of spending for specific goals and in accordance with the
legally stipulated procedures;
Budgetary request means a request on formation of revenues and allocation of budget
appropriations in accordance with the budget classification;
Budget organization means a ministry, state committee, agency or any other state-owned organization for which the State Budget shall provide appropriations, that are the main source of financing of its activities related to implementation of its functions and objectives;
Budget deficit means excess of budget expenditures over budget revenues for a given period;
Budget transfer means gratuitous money allocated from the budget to a local entity or an
individual directly or through an authorized body ;
The State Budget means the centralized monetary fund of the state (including state ad-hoc
funds) that provides for sources and amounts of revenues, allocation and amounts of
expenditures for specified goals during a fiscal year.
Internal public debt means an aggregate of liabilities of the Republic of Uzbekistan
emerging from the state internal borrowing;
State ad-hoc funds mean funds consolidated within the State budget with legally provided
sources of revenues, norms and provisions for raising revenues from each source and
purposes for which these revenues may be used:
External public debt means an aggregate of liabilities of the Republic of Uzbekistan as a
result of state external borrowing;
State internal borrowing means raising assets from the internal sources of the Republic of
Uzbekistan (legal and individual resident entities) that impose on the Republic of Uzbekistan
liabilities of a borrower or a guarantor to repay the loans (credits) of resident-borrowers of the Republic of Uzbekistan;
External public borrowing means raising assets from external sources (foreign states, legal
non-resident entities and international organizations) that impose on the Republic of
Uzbekistan liabilities of a borrower or guarantor to repay the loans (credits) of the resident-
borrowers of the Republic of Uzbekistan;
The public debt means aggregated liabilities of the Republic of Uzbekistan emerging from the internal and external borrowing;
Local budget means a component of the State budget that constitutes a monetary fund of the
relevant region, district or town that provides for sources and amounts of revenues,
expenditure items and amounts to be allocated for specific goals during the fiscal year.
Fiscal year means a period from January 1 to December 31 inclusive.
Operating cash balance means a legally established minimal amount of funds on the budget
accounts of the Republic of Karakalpakstan and local governments for a fiscal year.
The republican budget means a part of the State budget to finance national level activities
and provides for sources and amounts of revenues, expenditure items and amounts to be
allocated for specific goals during a fiscal year.
The budget of the Republic of Karakalpakstan means a part of the State budget that
comprises the monetary fund of the Republic of Karakalpakstan and provides for sources and amounts of revenues, expenditure items and amounts to be allocated for specific goals during a fiscal year.
SECTION II. BUDGET SYSTEM ADMINISTRATION
Article 4. Budget System
The Budget system shall be a composite of different level budgets and beneficiaries, organization and budget formation principles, interrelations among them, and among the budgets and recipients of the budget means arising during the budget process;
Budget preparation, consideration, adoption and monitoring on all budget levels for a fiscal year shall be performed in the national currency of the Republic of Uzbekistan – the soum.
Article 5. Main Principles of the Budget System
The budget system of the Republic of Uzbekistan shall have the following main principles:
Uniformity in the budget classification, budget documentation on accounting and budgetary process;
Correspondence of the budgetary arrangements to the administrative and territorial organization of the Republic of Uzbekistan;
Interdependence of budgets at various levels;
Balancing of the State budget;
Planning of the state revenues and expenditures by specific sources and directions (expenditure items);
Implementation of the state budget expenditures within the statutory appropriation limits;
Independence of the budgets at all levels.
Article 6. Authorities of the Cabinet of Ministers of the Republic of Uzbekistan in
Budget System Administration
The Cabinet of Ministers of the Republic of Uzbekistan shall :
Organize preparation and submission of the draft State budget to the Oliy Majlis of the Republic of Uzbekistan:
Organize the State budget implementation;
Coordinate and supervise activities of the Ministry of Finance and other administrative bodies on the State budget implementation;
Resolve procedures for formation and allocation of resources of the state ad-hoc funds;
Submit reports on the State budget implementation to the Oliy Majlis of the Republic of Uzbekistan;
Have other authorities in accordance with the legislation.
Article 7. Authorities of State Bodies of the Republic of Karakalpakstan and Loval
Governments in Budget System Administration
The Jolcargy Kenes of the Republic of Karakalpakstan and local representative bodies shall:
Adopt respective budget of the Republic of Karakalpakstan, local budgets and approve budget implementation reports;
Establish local tax rates, benefits, charges and revenues into the local budgets in accordance with the effective legislation;
Have other authorities in accordance with the legislation.
Submit draft budgets of the Republic of Karakalpakstan, draft local budgets for adoption to the Jokargy Kenes of the Republic of Karakalpakstan and local representative bodies respectively and prepare budget implementation reports;
Monitor the timeliness and completeness of revenue collection and adequacy of spending of budget appropriations;
Have other authorities in accordance with the legislation.
Article 8. Authorities of the Ministry of Finance of the Republic of Uzbekistan
Budget System Administration
The Ministry of Finance of the Republic of Uzbekistan shall:
Prepare the draft State budget;
Define procedures for and monitor revenue collection and expenditure allocation from the
State budget;
Perform expenditures from the Republican budget;
Register expenditure estimates and staffing tables of budget organizations:
Adopt legal and normative acts regulating procedures for expending the State budget funds by the recipients of budget means and other obligatory legal and normative acts;
Have other powers in accordance with the legislation.
SECTION III. STATE BUDGET
Article 9. Structure of State Budget
The state budget comprises the following:
The Republican budget;
The budget of the Republic of Karakalpakstan and the local budgets.
Budgets of the state ad-hoc funds shall be consolidated into the State budget.
The budget of the Republic of Karakalpakstan shall comprise the republican budget of the
Republic of Karakalpakstan and the budgets of districts and towns under the republican (Karakalpakstan) jurisdiction.
Oblast budget shall comprise the budget of the oblast, the budgets of districts and towns under the jurisdiction of the relevant oblast;
The budget of a city divided into districts (rayons) shall comprise the city budget and district budgets of the relevant city.
The budget of a district shall comprise the relevant district budget and the budgets of smaller towns under the jurisdiction of the relevant district.
Article 10. Budget Classification
The Budget classification means grouping of budget revenues and expenditures within the
State budget and sources for financing the deficit thereof.
The Budget classification shall be used for budget data systematization in order to generate,
consider, adopt and implement the State budget and provide compatibility of' the budget data
with those of' international classification systems.
The budget classification shall comprise:
Classification of the State budget revenues;
Functional, organizational and economic classification of the State budget expenditures;
Classification of sources to finance the State budget deficit.
Classification of the State budget revenues shall be the grouping thereof by types and sources in accordance with the legislation.
Functional classification of the State budget expenditures shall be the grouping thereof by the
functions of the state administrative bodies, local governance authorities as well as
other budget organizations (spending agencies).
Organizational classification of the State budget expenditures means the grouping thereof by
types of economic agents and activities that reflect the allocation of budget funds among their
direct beneficiaries.
Economic classification of the State budget expenditures means grouping of the State budget
expenditures by economic purposes and types of payments.
Classification of the sources for financing the State budget deficit shall be the grouping thereof by internal and external sources.
The budget classification shall be developed and approved by the Ministry of Finance of the Republic of Uzbekistan in accordance with the procedures established by the legislation.
Article 11. Revenues of State Budget
The revenues of the state budget shall be raised through:
1 . Taxes, charges, duties and other obligatory payments as established in the legislation;
2. Revenues from investing, leasing or sale of state owned financial and other assets;
3. Funds carried over to the state ownership through the right of inheritance or gifts as
provided by legislation;
4. Charitable funds from legal and physical entities as well as foreign states;
5. Repayments of budgetary loans extended to legal resident entities and foreign states;
Other revenues that comply with the effective legislation.
Article 12. State Budget Expenditures
The state budget resources shall be expended within the approved appropriation limits as:
1 . Current expenses of the recipients of budget means
2. Current budget transfers;
3. Capital expenditures for:
Procurement and reproduction of fixed assets and facilities (including
related works and services for state ????
- Purchase of land and other property to meet the state needs outside the Republic of
Uzbekistan ;
- Acquisition of rights for land and other intangible assets for state needs;
- Establishment of state reserves.
4. Budget transfers to legal entities to cover capital expenditures;
5 . Budget loans to legal resident entities and foreign states;
6. Budget subsidies and budget loans to the State ad hoc funds;
7. Repayment and servicing of the public debt;
8. Other expenditures compliant with the effective legislation.
Article 13. Ascription of Funds Distributed among Budgets to Expenditures and
Revenues
Between the budgets comprising the State budget there exist a range of transactions, which
will be expenditures of the budgets, from which the relevant payments shall be made, while
representing revenues of the budgets to which they will be allocated, such as:
Budget subsidies and budget subventions (within the authorized limits);
Budget loans and repayment thereof;
Other transactions compliant with this Law and the State Budget adopted for the relevant year.
Article 14. Financing of State Budget Deficit
The State budget deficit shall be financed through:
State internal and external borrowing;
Republican budget balance at the beginning of fiscal year;
Other sources amenable to the legal acts.
Article 15. Republican Budget Revenues
The revenues of the republican budget will be raised through:
1. The national taxes, charges, duties, fees and other obligatory payments according to the legally established standards and procedures;
2. The revenues from investing, leasing or sale of state financial and other assets in
accordance with the norms established by the legislation:
3. Funds carried over to the state through inheritance or gifts as provided by legislation;
4. Gratuitous receipts from legal and physical entities as well as foreign states;
5 . Repayments of budgetary loans by legal entities and foreign states;
6. Other revenues compliant with the legislation.
Article 16. Republican Budget Expenditures
The Republican budget resources shall be expended within the authorized appropriation limits as:
1 . Current expenses of the budget organizations funded from the republican budget;
2. Current budget transfers;
3. Capital expenditures for:
· Procurement and replenishment of fixed assets and facilities (including related
works and services for state needs;
· Acquisition of land and other property for state needs outside the Republic of
Uzbekistan;
· Acquisition of rights for land and other intangible assets for state needs.
· Establishment of state reserves.
4. Budget transfers to legal entities to cover capital expenditures;
5. Budget subsidies, budget subventions and budget loans to the budget of the Republic
of Karakalpakstan and the local budgets;