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36THE ROLE OF BUDGET POLICY IN THE DEVELOPMENT OF PUBLIC
FINANCE
Jasurbek Shermamatovich Orzimurodov
Master of Tashkent Institute of Finance
ABSTRACT
Introduction and development of treasury execution mechanisms of the state budget in the practice of developed countries in Uzbekistan, the introduction of the information system of management of financial resources of the state, obtaining fast and reliable information on a condition of public finances which allows effective management of public finances provides. The treasury system is an effective and practical mechanism for the execution of the state budget, in which all operations on government revenues and expenditures are carried out by the treasury. This article provides a number of practical and market recommendations for managing and improving public finance.
Keywords: Market mechanism, economic and social problems, financial theory, financial management, budget funds.
INTRODUCTION
Public finance management is central to economics and financial theory. The problems in managing the economy and public finances are that the market economy, despite being a self-regulating and developing system (the "invisible arm" of the market), has never functioned effectively without government intervention.
Historical development shows that, in general, the emergence of the capitalist market economy was accompanied by active state intervention. For example, in 1563, Queen Elizabeth I of England forbade her servants to eat meat twice a week in order to support and increase the demand for national fisheries.
In 1666, a number of measures were taken in England to alleviate the difficulties associated with the sale of wool products, in particular, the mandatory burial of the dead in woollen garments, and a fine of £ 5 was imposed on those who violated the law. Most modern economists believe that the "invisible hand" of the market should be supplemented by the "visible hand" of the state. Controversy over this depends on the extent of the interference, but the regulatory principle of the state is largely recognized by most scholars. The main reason for this consensus is that, according to scientists, the market cannot solve all the economic and social problems that exist in society on its own.
For example, in a monopoly situation, self-regulation does not promote competition, which leads to an increase in the price of certain types of goods, and as a
result, the income of the population is retained in a particular sector of the economy.
In such cases, the market mechanism becomes inefficient and the market mechanism plays a weak role in stabilizing the economy in times of economic crisis. Therefore, there is a need to develop additional mechanisms to regulate the economy. One of such mechanisms is the support and means of the state to regulate the economy. Today's reality, the world's hurricanes, prove that leaving the economy in the hands of the "invisible hand" does not work and that this is true.
In 2017, the President of the Republic of Uzbekistan adopted Resolution No. PP-721 "On measures to implement the project" Public Finance Management Reform "with the participation of the Asian Development Bank" (November 1, 2017), which provides for the management of public finances. It is planned to implement the reform project together with a new participant - the Asian Development Bank.In general, in addition to the funds allocated by our government for the implementation of reforms in public financial management, the World Bank - 14.2 mln. $ 2.8 million loans from the Government of Japan and by the Islamic Development Bank - 0.2 mln. dollars in grants.
As noted above, one of the main directions of the strategy of reforming the public financial management system is to avoid delays in the delivery of budget funds to their recipients in order to ensure full transparency of the budget system, to avoid debt, misuse of budget funds. Elimination of cases of use, transfer of accounts of income and expenditures of budgets of different levels of government and extra-budgetary trust funds to the treasury, increasing the efficiency of inter-budgetary relations.
LITERATURE REVIEW
The content and main directions of fiscal policy depend on the level of development of the science of the role of the state in the development of society and the relevant theoretical concepts that determine the level of state participation in economic management.
On this basis, it should be noted that the main directions of financial theory on the role of the state in the development of society in the twentieth century were the classical bourgeois political economists A.Smith (1723-1780) and D.Ricardo (1772-1823) and identified by the English economist J. Keynes (1883- 1946) and their followers.
RESEARCH RESULTS
Execution of the state budget means the execution of the state budget through a single treasury account, which collects funds from the state budget and extra-budgetary funds and carries out expenditures in clearly defined areas within these funds. the organization of targeted and effective financial management.
The treasury registers the obligations of budget organizations and budget recipients, after the delivery of goods and services to them by suppliers, on behalf of
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budget organizations and budget recipients and on their behalf, the Treasury assumes the authority and makes payments on the basis of the submitted documents on the basis of ensuring the targeted use of budget funds.
The development of the treasury summarizes the activities of all levels of financial and tax authorities involved in budget execution, in the new conditions all their activities will be focused on the accumulation of public funds in a single state treasury.
In order to achieve the goals and objectives of any state and society, it is necessary to maintain strong social protection, education, health, defence and governance. This requires the creation of a well-developed budget system, well-grounded analytical data on available sources of income and expenditures in the country.
It is known that the development of budget activities on the basis of further development and improvement of budget legislation is one of the main directions of reforming the public financial management system. Since the adoption of the Law of the Republic of Uzbekistan "On the Budget System" on December 14, 2000, a number of changes have taken place in the practice of the budget system, including:
S Introduction of the treasury system of state budget execution;
S Establishment and operation of a number of state trust funds and other extra-budgetary funds;
S The need to expand the sources of extra-budgetary funding for budget organizations and improve control over them;
S Improving the system of budget classification, budget accounting and reporting;
In connection with the adoption and implementation of the new version of the Tax Code of the Republic of Uzbekistan and other issues, he called for further improvement of budget legislation.
As a result, the norms established by the current Laws of the Republic of Uzbekistan "On Budget System" and "On Execution of the State Budget" are perfectly revised and reflected in the Budget Code. The new Budget Code, introduced in 2014 as part of the budget reform, aims to further strengthen the legal framework for public financial management, prioritize fiscal policy, increase the efficiency of budget use and improve the quality of public services.
Fig 1. Smart Government Lifecycle - FreeBalance
To strengthen and protect the national economy, regulating the international movement of goods and servicescustoms policy has been developed and implemented. Thispolicy is currently low quality, human to the domestic market. This is done by preventing the influx of goods that undermine the industry and by encouraging the results of advanced technologies, scientific and technological achievements to lead the country's economy.
The main tasks of fiscal policy in Uzbekistan today are:
• implementation of strict fiscal policy aimed at limiting the state budget deficit to the minimum level (around 3-4% of GDP);
• Implementation of the necessary structural changes in public spending in the economy, ensuring the growth of production;
• Based on the requirements of the formation of a socially-oriented market economy, to ensure social protection of the population, to create a financial base to ensure the protection of constitutional rights of citizens, to create the necessary conditions for improving living standards on the basis of free labour and entrepreneurship;
• Achieving targeted social protection, ensuring that financial resources reach the most vulnerable segments of the population;
• Ensuring the stability of the state budget and financial condition of enterprises;
• Strict adherence to budgetary discipline;
• In order to improve tax policy, increase the stimulating effect of taxes on the economy:
• Increase the stimulating effect of the tax system on the development of production, efficient use of material, natural, financial and labour resources, accumulated property;
• Reduction of the tax burden on enterprises, tax rates on value-added tax and profit tax, and on this basis to stimulate the revival of production;
• Radical change in the structure of tax revenues, increasing the role of resource and property taxes, the introduction of a system of tax collection from individuals.
• Drawing a clear line between national taxes and local taxes, which are the sources of local budgets;
• Consolidation of a large part of state budget revenues, strengthening the sources of revenue of local budgets;
• Development and improvement of an appropriate financial and tax mechanism to implement the measures set by the tax policy, etc.
At present, one of the problems of the financial policy of our country is to ensure its coherence with life, to adapt quickly to the changing conditions of development of our stateto solve the tasks awaiting their solutionto be able to find the necessary methods in a timely manner, to develop strategic conceptual solutions, to live within the meansensuring compliance, social from the residual method in determining the financial basis for meeting the social needs of citizensmeasures such as the transition to cost-effectiveness.
As noted above, this area of the financial system is commercialfinance of enterprises and institutions, finance of financial intermediariesand non-profit finance.This group of financial entitiesrelationships business organization, income andcost formation, property ownership, liabilitydepending on the form of fulfilment of the obligations assumedhas inherent characteristics.
At the same time, commercialfinance of enterprises and organizations plays an important rolethis is where the bulk of financial resources are formed.The general financial condition of the state is these enterprisesdetermined by the financial situation. Under market conditions, enterprises carry out their activities on a commercial basis. According to him, their expenses should be covered by their own income.
Labour communities are the main source of production and social development is profit. Enterprises in this sector have real financial independence, they independently distribute the proceeds from the sale of products, use profits at will, form production and social funds, from the resources of the financial market - bank lending, bond issuance certificates of deposit and seek the funds needed to invest in using other financial market instruments.
Enterprises have been exempted from any state intervention, while their responsibility for the economic and financial results of their work has been sharply increased.
CONCLUSION
The financial impact on the economic and social sphere of societyas the mainmethods of transfer, taxation, skilful and rational use of financial resources, financing,
financial market and so on. Fiscal policy at the current stage of development of society is financedeveloped on the basis of the requirements of the strategy and taking into account the economic conditions that have arisen. The use of various forms of management creates the conditions for better meeting public needs, saving resources, updating the product range and technical base, developing competition to solve the social problems of labour collectives, showing initiative.
The growth of financial resources directed to the satisfaction of social and other needs is achieved, first of all, through effective activities. However, with the change in political, economic and social conditions, public spending is constantly increasing.
In this regard, the current fiscal policy provides measures to ensure the steady growth of public financial resources. The need to increase the number of payments to the budget requires the implementation of a fiscal policy aimed at revitalizing the labour force in the economy.
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