Steadfast transit to digital economy is a factor of successful integration of modern system of the global economy

Published in Economics
Friday, 21 August 2020 15:40

Introduction of digital system into all spheres and branches of national economy is a main direction of the Programme of the President of Turkmenistan for social and economic development of the country in 2020 – 2025 and important condition for achievement of the level of developed countries, provision of stable rates of economic growth based on knowledge and innovations.

The solution of this objectives will also support to the implementation of the Sustainable Development Goals (SDGs), which were adopted by all country members including our state of the UN until 2030.

President Gurbanguly Berdimuhamedov has specified active implementation of information technologies, establishment of safe IT infrastructure, which provides relative terms for rapid digitization process, which gains acceleration every day, among national strategic priorities in mid-term perspective.

Gradual and steadfast transit to digital economy is an important factor of successful integration of our state to modern system of the world economy.

Today, all countries of the world pay special attention to digitization, legimately thinking that future level of the world economic growth will depend from the efficiency of using of digital technologies.

Competiveness, innovations and opening of new work places, all of these is mainly determined by the technologies. That is why Turkmenistan actively pursues the course toward rapid modernization by cultivation of new industries using application of digital technologies.

Review of objectives taking into account current external factors of globalization and appearing risks is required in any sphere. The Ministry of Finances and Economy, which practically implements financial, tax and budgetary, investment and pricing policy, policy in the sphere of insurance, auditing activity, accounting, financial reporting, financial safety as well as coordination of work of all ministries and departments of the country for implementation of the Sustainable Development Goals, carries out big work for digitization.

The Single Portal of the State Service of Turkmenistan (e.gov.tm) presents the website of the Ministry of Finances and Economy (fineconomic.gov.tm), Tax Department (tax.gov.tm) and Service of Financial Monitoring (turkmenfmd.gov.tm/) together with websites of other ministries, departments, establishments and organizations of the country.

The website of the Ministry has been updated, informational content has been expanded, in particular the page of Sustainable Development Goals and their implementation has been added.

Legal and regulatory base for digitization of activity has been made in the country. It is permanently improved taking into account modern requirements, scientific and technical developments including exchange of data and electronic documents, general identification processes. Work for introduction of digital technologies in regional services and lower structures is carried out on this base.

Central balance commission coordinates development of methodological bases of internal system controls of accounting and reporting of economic entities. Digital systems have started to be introduced in this sphere in the last years.

Thus, digital support is used during the sessions. It includes provision of huge volume of analytical and calculation materials reflecting outcomes of financial and economic activity of the branches, facilities and organizations to the members of the sessions. In future, this work will be arranged with regional commissions, in particular by introduction of information technologies.

According to the Law of Turkmenistan on Accounting and Financial Reporting, initial accounting documents and registers will be made in hard and soft copies and both formats have equal legitimate validity.

Digitization of accounting has started to be applied starting from collection of initial data to producing of reporting. Programme products for automation of accounting and reporting are developed and started to be used. In future, it will be implemented in all spheres. However, capability of provision of qualitative, reliable and convenient accounting is the main requirement for the software.

Adoption of the Law of Turkmenistan on Electronic Document, Electronic Document Management System and Digital Services, which specifies legal provision of these documents and services and their main requirements, was an important event of this year. The law is aimed at regulation of relations appearing in this sphere as well as at establishment of single space for informational exchange.

Based on this law and by the request of President Gurbanguly Berdimuhamedov, the Ministry of Finance and Economy has introduced electronic document management system in the Central Administration, General Finance and Economy Departments of Ashgabat and regions as well as in all structures under its supervision from July 1 this year.

It has allowed significantly improving the exchange of information, efficiency of using of work time, making the base for archiving of materials and provision of control for timely fulfilment of the documents.

System of Electronic tax is introduced to document management system of Tax department. The main goal of this system is to transfer to electronic format of obtaining of tax declaration from taxpayers, which will facilitate the system of reporting from one hand and to enforce control of collection of tax payments including provision of information to tax payers about arrears to the State Budget of the country on another hand.

At the same time, it is proposed to make desk audits of taxpayers in electronic format without invitation of them to relative authorities and based on tax declarations and other documents. Activity with crediting organizations for establishment of electronic document management system will be introduced on the second stage.

The Department of the State Registration of legal entities and investment projects also works on introduction of the electronic document management system in certain procedures related to the state registration, re-registration and elimination of legal entities.

At present time, local network between the central administration and regional registration departments has been established and operates. It allowed facilitating the system of agreeing on the documents between structural divisions in the regions and Ashgabat.

Automated order of reception of applications for confirmation of name of legal entities and approval of documents for their registration or re-registration is introduced. It will also give an opportunity to increase the level and quality of work of registration departments, eliminate barriers and reduce material and physical cost of citizens and legal entities in registration procedures.

The website of the Ministry has published normative documents and list of required documents, samples of applications in the section of registration of legal entities. Online format of applications has been made. It is planned to organize payment for registration and confirmation of names in online format.

Structure of new database of the Single State Register of Legal Entities (SSRLE) is under development. Soon, it is planned to launch several online services for registration of legal entities as well as to facilitate the order of registration and provision of information from the SSRLE.

Objectives and measures of digitization are discussed at the government sessions and meetings. The Head of the State always points out that innovations are not only implemented technologies but the process of their permanent update and the way of further development of Turkmen economy.

Financial and economic sector gradually improve work for digitization, introduces electronic systems to various activities. Thus, organization of various online seminars, conferences, trainings with international financial institutes, organizations and foreign partners has been established.

“Invest to Turkmenistan” website (invest.gov.tm) has been opened for fulfilment of assignments of President Gurbanguly Berdimuhamedov on promotion of information about economic reforms, projects of regional and international significance, attraction of investments of foreign and international banks, financial institutes and industrial groups.

Digitization is very important for implementation of the SDGs providing many opportunities for economic and social growth. Development of information society and entire complex of digital technologies and services is carried out by digital transformation, which is the main vector in achievement of the SDGs.

Implementation of economic potential of Turkmenistan in the context of the SDGs is significantly expanded, opportunity of branches during transfer to digitization, which main directions make direct effect on achievement of several goals in the sphere of sustainable development, is activated.

These goals are: the Goal no.8 “Decent Work and Economic Growth”, Goal No. 9: Industrialization, Innovations and Infrastructure”, Goal no. 10 “Reduced Inequalities within and among Countries”, Goal No. 12 “Responsible Production and Consumption”, Goal no. 17 “Partnership for the Goals”.

To some extent, use of digital technologies effects implementation of other sustainable development goals. Taking into account that our country has already integrated the SDGs in different state, profile and regional programmes, the transit to digital economy will allow accelerating social and economic progress of our state. At present, financial nd economic sector together with statistic bodies actively works on establishment of the SDG database.

International online seminar on financing of implementation of the Sustainable Development Goals has been organized last May. It was dedicated to the role of integrated national financing mechanisms and was a part of events under the Decade of Activity for achievement of the SDGs in Turkmenistan. It has also become one of important events in the programme of activities honoured to glorious 25th anniversary of permanent neutrality of Turkmenistan.

Delegations on ministerial level of the country members of the UN Special Programme for Economies of Central Asia (UN SPECA), representatives of the UN European Economic Commission, number of other UN agencies, international financial institutes such as the World bank, International Monetary Fund and other took part in the meeting.

This is another visual example how the use of digital video conference communication allowed active implementation of planned events inside the country with participation of international institutes and organizations.

Memorandum of Understanding on Strategic Partnership between the Ministry of Finances and Economy of Turkmenistan and Swiss company SICPA SA, which is specialized in secured identification, signed last January was another important measure in integration of our country to international trade and economic and financial relations including in trade and tax spheres, prevention of spread of counterfeit production.

Cooperation with one of the leaders in this sphere allowed mastering and implementing modern technologies in our country, which would be the base for the formation of new digital environment and development of digital economy in general.

Objectives of rapid industrialization of the country set by President Gurbanguly Berdimuhamedov can be solved with active development of colossal volumes of current world information and rapid exchange of data.

This is a highest priority taking into account joining of Turkmenistan as an observer to the World Trade Organization in July this year. Cooperation in electronic trade is discussed on the WTO platform at present. In near future, electronic commerce will be an important and perspective direction of development in our country as well.

For implementation of budgetary reform, introduction of the Budgetary Code and transfer to result-based budgeting, introduction of intellectual technologies will support to establishment of actual state system of management of financial information, which provides precise control of budgetary resources, rational management and use.

Acceleration of work of financial sector and economy in general by digitization, provision of efficiency, trustfulness, accuracy and high quality of information provided to the participants of the process of development, execution and reporting on the budget is the main advantage of this system.

Perspectives of development of digital financial and economic institutes of Turkmenistan a related to development and application of compatible programmes and digital solutions providing reliable traceability of document management and reporting. It is proposed to expand the range of advance technologies, which will significantly enhance efficiency of economic processes.

Introduction of single registration window, full transit of work of tax authorities with taxpayers to online system will allow not only improving the work of all economic entities but also making favourable environment for business and improving investment attractiveness of the country.

Digital transformation based on use of latest technologies provides not only opening of new work places but also the provision of higher level of relations of economic entities by the formation of new standards of their social behavior.

Digitization implies rapid transit to innovative way, stimulation of business and investment activity, growth of labor employment in scientific branches and work efficiency both in government and private sections, President Gurbanguly Berdimuhamedov highlights. In the result, all of these will make positive effect on improvement of life quality and wellbeing of our people.

The state news agency of Turkmenistan

 

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