[{"bbox": [83, 120, 1136, 201], "category": "Text", "text": "institutional mandate of the CoA to go beyond financial and compliance audits to include regular efficiency and performance audits of government agencies. Staffing levels have increased, and the CoA is routinely conducting compliance and financial audits."}, {"bbox": [83, 212, 1136, 425], "category": "Text", "text": "The foreign exchange control environment at the CBU maintains overall operational control over its exchange reserve management. The CBU has been audited regularly by internationally recognised audit firms and received satisfactory audit reports. In particular, the 2019 audit of the CBU's consolidated financial statements was conducted by an international audit firm, which issued an unmodified opinion on the financial statements. Financial statements are prepared in accordance with internal accounting and reporting procedures issued by the CBU. The audit was conducted in accordance with International Standards on Auditing. The audited financial statements of the CBU are not made publicly available and the Audit Report is for official use. The accompanied Management Letter issued by the auditor did not report any internal control issues."}, {"bbox": [83, 437, 1144, 490], "category": "Text", "text": "In conclusion, the public finance management reform strategy is sufficiently relevant and credible, including on domestic revenue mobilisation, and the eligibility criterion is met."}, {"bbox": [123, 527, 625, 556], "category": "Section-header", "text": "### 2.3.4 Transparency and Oversight of the Budget"}, {"bbox": [83, 576, 1146, 790], "category": "Text", "text": "The MoF has clearly defined the government's objectives to increase transparency and strengthen the application of the international fiscal statistics and reporting standards, improve the budget classification, presentation and reporting, strengthen fiscal risk disclosure, and address other fiscal transparency-related issues. Since 2018, significant progress has been made in improving public debt transparency. The MoF now regularly publishes detailed information on all new external loans, including the source and intended use of funds. Before a new external loan is signed and disbursed, the government must seek financial commitment authorisation from the President or the Cabinet of Ministers. This authorisation is published, and provides, in substantial detail, information about the project, the cost of funds, and the repayment profile. Prior to 2018, almost all this information was not publicly disseminated."}, {"bbox": [83, 801, 1146, 987], "category": "Text", "text": "There has also been progress strengthening fiscal transparency and accountability, most notably in the budget preparation process. The MoF publishes fiscal data quarterly on its official website and \"Open budget\" portal. Importantly, in December 2019, the government announced a significant overhaul of the budget approval and accountability process. Under a newly approved Budget Law (ZRU-590) amending the 2013 Budget Code, Parliament has been vested with the responsibility of reviewing and approving budget legislation. This effectively transfers oversight of the budget process from the executive to the legislative and provides for a substantially more robust and public consultation and debate process on the budget."}, {"bbox": [83, 999, 1146, 1236], "category": "Text", "text": "For the first time, starting from the 2020 Budget, the draft budget is submitted to Parliament in November, with Parliamentary approval required before the start of the new fiscal year on 1 January. Following the approval of the annual budget law, the government is now required to provide quarterly budget execution progress reports to Parliament and appear before the Budget Committee to answer questions. The government remains committed to further fiscal and debt transparency reforms. From the 2021 Budget, the government integrated all externally financed expenditure (including development partner projects) into the consolidated budget, which further reduced off-budget balances to between 1-2% of GDP. The authorities are also making progress with efforts to close and consolidate remaining off-budget spending, most notably through a commitment to close all ministerial off-budget accounts over the medium-term."}, {"bbox": [83, 1250, 1146, 1355], "category": "Text", "text": "As part of anti-crisis measures, all revenues to these funds were redirected to the consolidated budget account. The authorities are also working to further enhance debt transparency, through the development of a medium-term debt strategy, new debt legislation intended to increase debt transparency and discipline, and publishing detailed quarterly Debt bulletins on the MoF's website."}, {"bbox": [83, 1369, 1146, 1450], "category": "Text", "text": "The full compliance of the 2020 and 2021 Budget Laws will help establish a strong foundation for future reforms to the budget process. Over time, and as further fiscal transparency reforms are implemented, and as citizen and civil society capacity is built, the supported measures will lower fiscal risks and improve the efficiency of public spending."}, {"bbox": [83, 1461, 1146, 1541], "category": "Text", "text": "The government has also adopted a new Fiscal strategy that aims to reform the public financial management between 2020 and 2024⁹. According to this strategy, the Ministry of Finance is committed to shift to a MTBF system and introducing a new \"Program-based budgeting system\". Currently, respective employees of the Ministry are working"}, {"bbox": [72, 1610, 1157, 1658], "category": "Footnote", "text": "⁹ Cabinet of Ministers Resolution №506 dated 24.08.2020 \"On reforming the Public Financial management strategy of the Republic of Uzbekistan between 2020 and 2024\". Available at https://lex.uz/docs/4966572"}, {"bbox": [1133, 1659, 1158, 1681], "category": "Page-footer", "text": "12"}]