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INTERNATIONAL EXPERIENCE OF LOCAL BUDGET MANAGEMENT AND ITS DIRECTIONS
FOR APPLICATION IN THE COUNTRY
Rejapov Kh.,
Phd,
National University of Uzbekistan named after Mirzo Ulugbek, Senior lecturer at the Department of Macroeconomics at the Faculty of Economics. Uzbekistan.
Turgunov T., Phd,
Andijan Mechanical Engineering Institute, dean of the faculty of mechanical engineering technologies
Rakhmanov B.
National University of Uzbekistan named after Mirzo Ulugbek, Lecturer at the Department of
Macroeconomics at the Faculty of Economics
Thie article analyzes the budgetary systems of developed countries, interbudgetary relations and the development of local budgets. Analyzing inter-subject relations in developed countries, scientific and practical proposals for the development of budgetary relations in the country have been developed.
Keywords: budget system, budget, local budget, state budget.
The state budget system of Uzbekistan is being implemented with high transparency in its openness and targeted use. President of the Republic of Uzbekistan Sh. Mirziyoyev in his address to the Oliy Majlis said that "the distribution of additional income from local budgets, fair selection of pensioners and assessment of the work of heads of executive bodies will be based on an analysis of appeals to the People's Reception Office. The initiatives of the head of our state, the adoption of various important decisions and decrees by them are attracting more and more attention of foreign developed countries, and they are establishing multilateral cooperation with our country.
Budget reforms are also very important in other countries and are an integral part of their economies. In particular, the budget system of developed countries such as the United States and Russia has developed over the centuries and gone through several stages. During the 1980s and 1990s, fiscal reforms developed in the United States and other countries, and the
Scandinavian countries of Sweden, Denmark, and Norway are working to further improve their fiscal policies. The US budget system is based on results. In the United States, the results-based budget was first introduced in 1949 and was used primarily for military purposes. Performance budget by the commission, which is called the budget of action, is considered a system that reflects not only costs but also revenues.In 1950, Congress adopted a reform on the budget and determined the need for local budgets to report to the administration of the US President.
To date, the state budget deficit has reached $ 1 trillion by 2019 after the failure of President Donald trump's fiscal policies in the United States. The reason for this was the large budget allocations for US military operations in the middle East in recent years, after which the US Congress decided to address the problem of a shortage of 50-year bonds. In 2019, $ 4 trillion was spent from the US state budget, and the deficit was $ 1109 trillion (see picture 1).
1-picture: U.S. budget deficit1
In other countries, including Russia, budget reforms have a very rich history. Efforts to improve the first budget system date back to the Russian Empire and have changed over the centuries. Since the 1990s, Russia has pursued a policy of greater transparency in the state budget. Since 2000, at the initiative of President Vladimir Putin, Russia has experienced economic renewal and has risen to new heights in 19 years. By 2018, 38% of Russia's state budget has been spent on social reforms, the highest rate in any other sector.2
In addition, in Australia, New Zealand, and many other countries, the result-oriented budget system, like that of Russia and the United States, has evolved over the years and is still modern. In the United Kingdom, the budget system is largely reformed by the Prime Minister, and the Queen or King has the sole authority to sign laws and decrees. By 2020, the UK's exit from the EU is predicted by many economic experts to be a major blow to the UK's budget system, leading to a budget deficit, with only spending rising instead of revenue.
In Italy, a National System for Monitoring and Evaluation of Public Investment has been established at the national and regional levels to assess the quality of regional policy implementation. To ensure the transparency of expenditures, a special database, the Conti Pubblici Territoriali (CPT), has been created as part of the national statistical system6. In order to increase the efficiency of the use of allocated funds, an evaluation of the effectiveness of local governments has been carried out, and monetary rewards are paid for the implementation of their tasks.
Italy has established a National Public Investment Monitoring and Evaluation System operating at the national and regional levels to assess the quality of regional policy implementation. To ensure transparency of expenditures, a special database "state registration of territories" (I Conti Pubblic Territory,
CPT) was created as a component of the national statistical system. 6. In order to increase the efficiency of using the allocated funds, an assessment of the effectiveness of the activities of local authorities was carried out, and monetary rewards are paid for the fulfillment of their tasks.
Obviously, when assessing the scale of differentiation by the socio-economic level of regions, the volume of gross domestic product per capita is not limited. In national statistics, in a comparative study of territories, the population size, the share of the population in the total population of the country, the age composition of the population, the density and average life of the population, indicators of external and internal migration and the structure of employment, the level of employment and unemployment, the cost of labor and the size of wages are taken into account. fees, as well as their various components, educational level and other similar demographics.
Inter-budgetary relations in Spain involve the financing of autonomous communities on the one hand and local communities (municipalities, provinces, islands) on the other. The relations between the Center and the Basques and Navarre are given a special status, they are regulated by "formal" legislation and operate on a bilateral basis (in the field of self-government and legislation, taxation, customs borders). In recent years, about 70 percent of government funding has gone to local communities and municipalities, more than 20 percent to the provinces of the Basque Country, about 7 percent to the provinces of the general regime, and 3 percent to the islands. 75% of all public funds are allocated taking into account changes in the demographics of the regions, and the remaining 25% is distributed in proportion to the share of the region's population in the total population and the number of disabled people (under 16 years of age and over 64).3
Additional public funds will be directed to autonomous regions with low-density populations. The
1 www.Economics.ru/articles/2019/09/13/811233-defitsit-ssha-l-trln
2 www.investorschool.ru/minfin
establishment of the Partnership Fund and the Competitiveness Fund is seen as a new element of the system. The aim of the new financial structure is to reduce the income gap between the regions, and the regions now retain half of the income tax (instead of the previous 33%). The regions are empowered to set tax rates and tax deductions, as well as a minimum amount of non-taxable income. Also, the regions can keep 50% of VAT revenues (instead of the previous 35%).
In order to ensure openness and transparency of information on the State Budget of the Republic of Uzbekistan and the participation of citizens in the budget process:
• starting from 2018, an information publication "Budget for Citizens" is being developed;
• the information portal Openbudget.uz, which provides detailed information on the state budget, was launched in January 2019;
• information on the execution of the state budget is posted on the website of the International Monetary Fund in accordance with the standards of the State Financial Statistics (GFS);
• from 2019, a mechanism has been introduced to direct at least 10% of the additional resources generated in the district and city budgets based on the measures expressed by citizens;
• relevant norms have been introduced in the law and regulations governing the use of budget funds by local budget managers and local public authorities on their official websites.
An analysis of the state of local budget allocations for additional funding and activities for 2019 revealed the following. In 2019, a total of 1553.2 billion soums was formed, the amount planned to be spent on the proposals of the population amounted to 174.1 billion soums, the number of votes cast was 87,755. This is an increase of 2.08 times in the 1st quarter compared to the 4th quarter, an increase of 2.11 times in the amount of funds provided by the population, and an increase of 8.56 times in the number of votes cast. This, of course, indicates an increase in revenues from local budgets, an increase in financial literacy of the population3.
In order to increase the openness and transparency of information on the State Budget of the Republic of Uzbekistan and the participation of citizens in the budget process, the following is being done:
• from 2018, the information publication "Budget for Citizens" is published annually;
• launch of the information portal Openbudget.uz, which provides detailed information on the state budget;
• information on the execution of the state budget is posted on the website of the International Monetary Fund in accordance with the standards of Public Financial Statistics (GFS);
• from 2019, a mechanism has been introduced to direct at least 10% of additional resources generated in the district and city budgets based on the activities reported by citizens;
• relevant norms have been introduced in the legislation and legislative acts regulating the process of using budget funds by the subordinates of budget funds and local government bodies to be fully announced on their official websites.
From the experience of developed countries, the draft state budget has been adopted in the form of a law for the first time since 2020, and in order to increase the authority and responsibility of ministries and departments, budget expenditures have been approved not in the same areas as before, but in the ministries and departments. At the same time, the procedure for approval of the expenses of the Republican budget of the Republic of Uzbekistan by the chambers of the Oliy Majlis of the Republic of Uzbekistan, and the local budgets by the councils of relevant people's deputies was introduced.
For 2018-2019 years, tax reforms were carried out in the country, the tax burden on the economy was reduced, as well as the types of taxes were acceptable, and the value added tax chain was formed on the account of increasing the number of taxpayers.
In order to improve the performance and management of local budgets in developed countries, the following first-line tasks should be carried out:
• Development and implementation of a system for assessing and managing fiscal risks;
• Increasing the powers and accountability of local government bodies in the field of budget and further strengthening their responsibility;
• It is necessary to accelerate the development of the medium-term budget framework and the introduction of a new "results-oriented budgeting" system of annual budget formation and improve the legal framework.
REFERENCES:
1. www.economics.ru/arti-cles/2019/09/13/811233 -defitsit-ssha-1 -trln
2. www.investorschool.ru/minfin
3. https://mf.uz/en
3 https://mf.uz/en
