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To mitigate the negative impact of the pandemic on the economy, an Anti-Crisis Fund of 10 trillion soums is being created under the Ministry of Finance. The funds will be directed to measures to combat the spread of coronavirus, support for entrepreneurship and in the social sphere.

An Anti-Crisis Fund in the amount of 10 trillion soums is being created under the Ministry of Finance of Uzbekistan. This is stated in the presidential decree "On priority measures to mitigate the negative impact on the economy of the coronavirus pandemic and global crisis."

At a video conference chaired by the President on March 19, it was said that there are risks of a decrease in the GDP growth rate of Uzbekistan this year by 1.8%. Exports are expected to decline by $ 1.1 billion, foreign exchange earnings - by $ 500 million, tourism revenues - by $ 150 million, and a delay in the implementation of projects with foreign investment worth $ 2 billion.

The funds of the Anti-Crisis Fund will be used for several purposes:

Funding measures to combat the spread of coronavirus infection (1 trillion soums)

• provision of medical and other institutions with medicines and medical devices, protective drugs and test systems necessary to combat the spread of coronavirus;
• covering the costs of keeping in quarantine of persons at risk or in contact with infected persons;
• the allocation of additional funds for material incentives for health workers involved in the fight against the spread of coronavirus, the costs of the sanitary and epidemiological service of the republic for the implementation of protective measures.
• In particular, medical workers will be paid a salary increase of 120%.
• construction, repair, reconstruction and equipping of medical and other institutions involved in measures to identify, prevent and treat infectious diseases.

Support for entrepreneurship and employment of the population (5.5 trillion soums)

• expanding the provision of guarantees and compensation by the State Fund to Support the Development of Entrepreneurial Activity to cover interest expenses on loans issued, primarily for the production, purchase and sale of socially significant consumer goods. At the same time, 500 billion soums will be allocated to the state fund for supporting the development of entrepreneurship;
• implementation of additional infrastructure projects in the regions of the republic aimed at expanding economic activity and employment, as well as the construction of engineering communications, primarily in small industrial zones.

Expansion of social support for the population with the allocation of additional funds (0.7 trillion soums):

• to strengthen measures to support low-income families and increase the number of beneficiaries, including through the Council of the Federation of Trade Unions of Uzbekistan;
• The Public Works Fund under the Ministry of Employment and Labor Relations to expand public works - 200 billion soums;
• to organize mono-centers "Ishga Markhamat" and vocational training centers, as well as to support labor migrants by organizing their vocational and language training;
• to provide interest-free loans for the payment of wages to employees of business entities that have suspended their activities in connection with the announcement of quarantine.

Ensuring the sustainable functioning of sectors of the economy (2.8 trillion soums)

• provision of measures of state support to strategic enterprises through the allocation of interest-free budget loans to repay loans attracted under the state guarantee of Uzbekistan, as well as for the implementation of priority expenses;
• reimbursement of part of the transportation costs of business entities engaged in foreign trade activities;
• provision of additional measures to support industries and sectors of the economy most susceptible to the negative impact of the spread of coronavirus infection, as well as commercial banks, in the event of a deterioration in the quality of the loan portfolio;
• replenishment of shortfalls in revenues of the budget of Karakalpakstan, local budgets of regions and Tashkent in connection with the provision of deferrals for the payment of taxes and a decrease in entrepreneurial activity by providing interest-free budget loans for up to three years.

The sources of the Anti-Crisis Fund identified state budget funds, including through cost optimization, soft loans from international financial institutions and other sources not prohibited by law.

The Cabinet of Ministers was instructed to take measures to attract external borrowings in 2020 to support the budget in the amount of up to $ 1 billion through concessional loans from international financial institutions and other sources in order to ensure financing of the state budget and the Anti-Crisis Fund, as well as additional funds to finance support measures enterprises of the real sector of the economy, exporters and commercial banks.

In addition, the government should, within two weeks, approve a set of measures to find unused reserves by improving tax and customs administration, ensuring the completeness of payment of assessed taxes, implementing measures to reduce the “shadow” economy and introducing new effective forms of tax and customs administration.

Source: gazeta.uz