Finance and credit

Finance (the international term comes from the French “finance” – money revenue) means the relations in which the state, enterprises and families collect and spend funds. The state budget is a one-year plan of revenues and expenditures; it is made up of the republican budget, the budget of the Republic of Karakalpakstan and local budgets. The budget covers costs such as schools, hospitals, roads and wages. Taxes are compulsory payments that fill the state budget; they are set only on the basis of law, by the Oliy Majlis. The tax system is single, and its rules are in the Tax Code. Everyone must pay the taxes set by law. The Central Bank runs the banking system and keeps the national currency stable. In Uzbekistan the so‘m was introduced on 1 July 1994. The budget is adopted as a law every year, so its figures change from year to year.