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Extended session of the Cabinet of Ministers takes place in Tashkent

Extended session of the Cabinet of Ministers takes place in Tashkent The Cabinet of Ministers of the Republic of Uzbekistan convened for an extended meeting on January 15 to discuss the outcomes of socio-economic development in the country in 2015 and the crucial priorities of economic program for the year 2016.

President of the Republic of Uzbekistan Islam Karimov delivered a keynote speech at the session.

The head of our state noted that despite the ongoing world financial and economic crisis, stable and sustainable high rates of economic growth and macroeconomic balance have been achieved as a result of consistent and systemic implementation of crucial priorities of the economic program for 2015 and well thought-out Program on ensuring deep structural transformations, reliable protection of the interests of private property and small business.

He underlined that the achievements and prospects of economic development of the country, highly recognized by authoritative international financial and economic organizations and think-tanks, once again confirm the high efficiency and success of the chosen development strategy, acknowledged in the world as “the Uzbek model” of reforms. In accordance with the report of the World Economic Forum, Uzbekistan is among the five countries with the fastest growing economies in the world based on development outcomes for 2014-2015 and forecasts for 2016-2017.

The gross domestic product of the country in 2015 grew by 8 percent, production of industrial goods increased by 8%, while that of agricultural products swelled by almost 7 percent, construction and assembling works by almost 18%. The national budget was executed with surplus at 0.1 percent of the GDP. The surplus in foreign trade turnover has been secured. The inflation rate has not exceeded forecast parameters.

A set of systemic measures on radical change of ownership structure, decreasing the presence of the state in economy, altering the principles and approaches of corporate management has been realized. Modern management structures have been introduced in all joint stock companies.

A package of legislation on strengthening the guarantees and protection of lawful rights of private owners and entrepreneurs, on simplifying and facilitating creation and operation of entrepreneurship subjects via Unitary centers on providing public services (one-stop-shops) has been adopted. Thanks to taken measures, the share of small business in gross domestic product has increased to 56,7 percent or 1,8 times in comparison to the year 2000.

Active implementation of measures and investment projects on structural transformations, modernization, technical and technological renovation of spheres, as well as formation of modern infrastructure ensured disbursement of investments for 15,8 bln. US dollars 9,5 percent more than in 2014. Over 3,3 bln. US dollars or 21 percent of total investments were foreign investments, of which 73% were direct foreign investments. The spheres, oriented towards production of highly technological finished goods have demonstrated accelerated development. 158 large production facilities have been commissioned.

The agricultural sector has been undergoing deep structural changes. A rich harvest of over 7 mln. 500 thousand tons of grain and over 3 mln. 350 thousand tons of cotton has been grown. Fruit and vegetable growing, horticulture, viticulture, animal husbandry, as well as industrial processing of their outputs have been dynamically developing.

The services sphere has also demonstrated dynamic growth. The volume of paid services increased by 10,8 percent, retail turnover- by over 15 percent. The share of services sector in the gross domestic product has reached 54,5% compared to 49% in 2010.

The banking system has been further strengthened, the capitalization level of the banks has been increased and their investment activity has widened. Total assets of the banking system has increased by 23,3% in comparison to the year 2014 and reached 7,8 trillion soums.

Sustainable high growth rates of the economy and services sector have created a firm foundation for further increase of peoples’ incomes, improving the welfare of the population. The salaries of employees of budget organizations, pensions and scholarships have increased by 21,9%, total real income per capita – by 9,6%. The share of incomes from entrepreneurial activity has increased to 52% in comparison to 47,1% in 2010. Over 980 thousand jobs have been created, of which over 60% in rural areas, over 480 thousand graduates of professional colleges have been employed.

The State Program for “The Year of attention and care the senior generation” has been executed, for which over 2 trillion 246 bln. soums and 225 mln. US dollars have been directed from various sources.

In his report, President Islam Karimov offered a detailed and comprehensive analysis of the existing unaddressed problems and expounded on the policy tasks directed at further reforming, deepening structural transformations and diversification of the economy, as well as the most critical priorities for 2016.

The government, ministries, other agencies, economic associations and hokimiyats of all levels got tasked with the adoption of necessary measures dedicated to continuing implementation of commenced democratic reform and modernization of the country, deep structural transformations, fir of all in the industrial and agricultural spheres, ensuring macroeconomic balance, anticipatory development and protection of private property, entrepreneurship and small business, accelerated development of engineering-communication and road infrastructure, social sphere, further increasing the welfare of the population.

The most important tasks were identified to radically increase competitiveness of the economy, strengthen support of exporting enterprises, all-round stimulation of small businesses and farmers to export. A set of additional measures on wide introduction of modern information and communication technologies in the spheres of the economy and radical acceleration of creation of the “Electronic government” system.

Special significance was attached to ensuring the realization of policy measures to further the goals and tasks for this year determined in connection with its announcement as the Year of Healthy mother and child, including measures to further strengthen the protection system of the family, motherhood and childhood, formation and consolidation of material-technical base of and human resources potential of perinatal and screening centers, nursing services, increasing the level and quality of treatment of young mothers and children, creation of healthy spiritual environment in the family.

Heads of Cabinet of Ministers complexes, ministries, other government agencies, organizations and regional hokims spoke to address the issues on the agenda. The discussions at the government meeting produced a decision that included practical measures to secure the realization of crucial priorities in the economic program of the country for the year 2016.