President chairs a meeting on improving the system effectiveness in mahallas

On April 19, President Shavkat Mirziyoyev chaired a videoconference on improving the system's effectiveness in the context of mahallas and ensuring employment of the population.

The execution of these tasks largely depends on the economy of the regions. Therefore, it is planned to allocate more than $500 million and over 2 trillion UZS for entrepreneurship development. Measures have been taken on issues that are of most concern to entrepreneurs: tax administration has been simplified, and the procedure for issuing permits and conducting inspections has been facilitated.

Measures for economic development and solving social problems of mahallas, organizing this work at the grassroots level were discussed at the meeting.

By the decree of the President of the Republic of Uzbekistan of December 3, 2021, each mahalla established the position of assistant hokim of the district (city) for the development of entrepreneurship, ensuring employment and poverty reduction. This is a completely new system, the correct organization of which is of great importance today.

In this regard, the first results of the activities of assistant hokims were considered. It was noted that in three months they conducted a study of 6 million 900 thousand households and divided them into 4 categories. 11 percent of households turned out to be low-income, 47 percent – in need of additional income, 6 percent – in need of social protection, 36 percent – self-sufficient families. Based on the results of the study, local leaders were able to organize targeted work and help thousands of citizens find jobs and undergo vocational training.

In the first three months of this year, 50,000 family business projects received 1.3 trillion UZS of loans and 20 billion UZS of subsidies on the initiative of assistant hokims. 47,000 new entrepreneurs opened their businesses, and 8,000 small production and service projects were launched.

The Head of the state instructed to encourage assistant hokims who showed the best results.

At the same time, the work of assistant hokims in many mahallas is not felt. For example, the unemployment rate in mahallas exceeds 20 percent.

Such districts were listed at the meeting, and their hokims were warned. Deputy hokims, heads of sectors of several districts and cities have been relieved of their posts.

“There is no place among us for leaders who do not work for the benefit of families, who do not understand the principle “in the name of honor and dignity”, Shavkat Mirziyoyev said.

Instructions were given to improve the situation in mahallas, the situation which was recognized as unsatisfactory based on the results of the study. 800 billion UZS will be allocated for this by optimizing budget spending.

It was emphasized that from now on each mahalla will receive support based on its specialization.

Thus, 2.5 thousand mahallas specialize in animal husbandry, poultry farming, fishing and beekeeping. The incomes of the population will increase if they are provided with additional support and enterprising residents with incubators, domestic chickens, and bee hives.

In general, at least 140 thousand people can be employed in animal husbandry, poultry farming, fish farming, and beekeeping.

The importance of expanding small industries in mahallas, such as handicrafts, sewing, shoemaking, and confectionery, was noted. The President approved the initiative to create micro-industrial centers in mahallas for this purpose.

This year, 500 billion UZS will be allocated for these purposes, and the centers will be exempted from paying land tax and the property tax for 5 years.

It was also noted that for the effective use of unused structures identified at places, the proceeds from their sale or lease should be directed to the development of mahalla infrastructure.

Home-based work is a good opportunity to employ women and persons with disabilities. To this end, today the President of Uzbekistan signed a resolution on ensuring employment of the population through the development of home-based work.

Entrepreneurs working with home-based workers will receive 500 billion UZS from the family entrepreneurship program, as well as a guarantee from the Entrepreneurship Fund in the amount of 75 percent and compensation for part of the loan costs exceeding 10 percent.

Home-based workers will be able to pay only social tax as self-employed citizens, and wages for the first month of work in remote areas will be covered by the state.

Hokims of the regions were instructed to employ the socially vulnerable population, effectively using these opportunities.

Over 2 thousand mahallas in the country specialize in services. In this regard, the need for organizing retail and service centers in mahallas with a population of more than 20 thousand people was noted. These centers will also be exempt from paying land and property tax for 5 years.

At the meeting, the hokims and their assistants presented information on the plans for the “mahallabay” work and employment of the population.