Budgetary financing of investments in the Republic of Uzbekistan

Аннотация

The article is devoted to the features of attracting and financing investments in the Republic of Uzbekistan, there shown a priority of the investment sphere, since its development will make it possible to increase the efficiency of the use of raw materials, expand production of high-tech competitive products and ensure socio-economic development of the regions. Keywords: investment policy, budgetary financing, centralized investment, efficiency, modernization. Investment development has always been a priority for the Government of the Republic of Uzbekistan. Strategy of Actions on Further Development of Uzbekistan emphasizes the importance of “pursuing an active investment policy aimed at modernizing, technical and technological updating of production” [1]. In January 2020 there adopted the Decree of the President of the Republic of Uzbekistan “On measures to implement the Investment Program of the Republic of Uzbekistan for 2020-2022” [2], which states that comprehensive measures are being taken in the country on further intensification of investment policy aimed at including the modernization and creation of high-tech industries that provide deep processing of domestic raw materials and production of finished products with high added value. In 2019 - the Year of Active Investments and Social Development - there carried out a large-scale work on radical improving and simplifying mechanisms for implementing investment projects, expanding the attraction and development of foreign direct investments primarily. These measures made it possible to ensure the development of about 184 trillion soums (UZS) of capital investments in 2019, which is 1.3 times more than last year. The share of investments in gross domestic product exceeded 34 percent. The Presidential Decree “On measures to implement the Investment Program of the Republic of Uzbekistan for 2020-2022” approved the corresponding investment program. According to the Investment Program, the forecast for the development of capital investments for 2020 is 223.18 trillion soums, out of which are the following: 82 Scientific research results in pandemic conditions (COVID-19) - 43.4 trillion soums - centralized investments (budgetary funds, funds of the Fund for Reconstruction and Development of the Republic of Uzbekistan, foreign investments and loans under state guarantee); - 189.78 trillion UZS - decentralized investments (funds of enterprises, including taxes left at the disposal of enterprises, borrowed funds and foreign direct investments). In 2020 the forecast for the development of foreign investments and loans is 129.10 trillion soums, including 27.35 trillion UZS - foreign loans under state guarantee and 13.96 trillion soums - non-guaranteed foreign loans. At the same time, in 2020 it is planned to attract $ 9.11 billion of foreign direct investments and loans, out of which $ 8.9 billion is not under the state guarantee [2]. Financing of investments can be made at the expense of the budget funds, the issue of securities, credit funds, at the expense of the funds generated by the investment project itself, etc. In many countries, the budget form of financing is still quite widespread, despite the increasing introduction of the principles of individual and collective investment in investing. The advantage of such a source of financing the investments is a possibility of irrevocable basis for the provision of funds for the implementation of projects, as a rule, with great social potential. Budget financing of investment projects in Uzbekistan is carried out, as a rule, through financing under targeted programs and financial support. It provides for the use of budget funds in the following basic forms: investments in the authorized capital of existing or newly created enterprises, budget loans (including investment tax credit), the provision of guarantees and subsidies. For 2017-2020 Uzbekistan has seen a significant increase in government funding for centralized investments. 83 Scientific research results in pandemic conditions (COVID-19) 140 000,0 131 104,5 16 000,0 118 008,6 120 000,0 13 624,814 000,0 12 000,0 100 000,0 79 736,1 10 000,0 80 000,0 8 000,0 60 000,0 49 343,7 6 000,0 5 400,4 40 000,0 3 960,2 4 000,0 3 234,7 20 000,0 2 000,0 0,0 0,0 2017 2018 2019 2020 Expenditures of the state budget , total Costs of financing centralized investments Fig. 1. Dynamics of expenditures of the state budget of Uzbekistan and costs of financing centralized investments, trillion soums [3] If we consider the expenditures of the state budget of the Republic of Uzbekistan in dynamics, we can see that in 2018 there was an increase in spending on centralized investments +67%, in 2019 compared with 2018 - a negative trend (-26.7%). The largest increase can be noted in 2020 (+244%). This confirms the importance of investment development for the Republic of Uzbekistan. Similar conclusions can be drawn by analyzing the share of expenditures on centralized investments in