Tashkent, Uzbekistan (UzDaily.com) -- Why is it necessary to attract free cash of the population, how will this affect the development of the real sector of the economy, do citizens trust the financial-banking system and the capital market? These and other issues were considered during the round table organized by the Committee of the Legislative Chamber of the Oliy Majlis on Budget and Economic Reforms together with factions of political parties in the lower house of parliament.

Speakers noted that based on the published data of the Central Bank of Uzbekistan on the balance of payments, international investment status and external debt of Uzbekistan, the balance of deposits of legal entities and the population over the past three years amounted to US$11.5 billion.

These are funds received as remittances, the bulk of which is held by the population or used in the shadow economy.

According to experts, in order to attract funds from the shadow economy, they need to be legalized by applying an “amnesty of capital”. It is introduced in Russia, Georgia, Kazakhstan and other countries. According to deputies, it is advisable to adopt an amnesty of capital in parliament in the form of a legislative act. The document, adopted in the form of a law, will inspire more confidence in citizens and will become the object of parliamentary control.

It was also said about the introduction of a system of mandatory declaration of income of citizens in the country, which will provide social support to the population, create a fair tax system and identify the informal economy. In addition, members of parliament noted that the process of mandatory declaration along with replenishment of the state treasury will help fight corruption and the shadow economy, as well as increase the international rating of social development of our country.

The coordination of measures in the fight against the shadow sector is confirmed by international experience, the effectiveness of the fight against the shadow economy in all areas at the same time. Reducing the volume of the shadow sector will also largely depend on solving institutional problems, that is, protecting the rights and freedoms of entrepreneurs. To this end, deputies supported the need to improve laws on freedom of enterprise and the inviolability of private property.

Increasing public confidence in the banking system and offering attractive bank deposits is a key factor in attracting free cash resources of the population. According to participants, deposit rates should be set by the market itself based on real inflation rates. It is also important to develop a deposit protection system, and compliance with international standards will increase public confidence in the banking system.

It was noted that the development of the capital market is one of the priorities of state policy. In addition, the sale of government securities to individuals and foreign investors, the development of the secondary market will serve to reduce public external debt and provide access to domestic resources.

As a result of the discussions, it was decided to study the committee’s proposals and recommendations on attracting free funds of the population to the real economy and to develop amendments to the relevant legislation.