During 1H 2023, Uzbekistan's state budget experienced a significant 25% increase in expenses compared to the same half-year in 2022. Notably, half of these expenses were allocated to the social sphere, as reported during a meeting of the Legislative Chamber of the Oliy Majlis of Uzbekistan.
Minister of Economy and Finance, Jamshid Kochkarov, presented a report on the budget implementation for the 1H 2023. The state budget's revenues during this period amounted to $8.5bn (100 trillion UZS), with $6.5bn (76 trillion UZS) coming from taxes and $2.05bn (24 trillion UZS) from customs revenues.
On the other hand, the total state budget expenses exceeded $11.05bn (129 trillion UZS), and $5.5bn (65 trillion UZS) were allocated to various social sectors.
Compared to 1H 2022, state budget revenues rose to $7.9bn (92.6 trillion UZS), showcasing an increase of $634.2mn (7.4 trillion UZS). In the same period, tax revenues accounted for $6.08bn (71 trillion UZS), constituting 76.7% of the total revenue, while customs revenues made up $1.8bn (21.5 trillion UZS), contributing 23.2% of the state budget's revenues.
The budget expenses during 1H 2023 saw a sharp 25% increase compared to the previous year, amounting to $8.8bn (103 trillion UZS) in the same period of 2022.
Deputy Durbek Akhmedov stated: "The increase of budget expenses by 25% compared to the last half of the year is a very large amount. About half of the expenses are directed to the social sphere."
In 2022, the country faced a significant budget deficit, reaching 4% of GDP. Former Finance Minister Timur Ishmetov highlighted the urgent need to reduce budget expenditures and maintain the financial deficit at 3%. Ishmetov also stressed the importance of discipline in planning the state budget and spending the allocated funds efficiently.
The current state budget continues to operate with a deficit, a situation observed in many developing countries. Sherzod Muhamedov, a department director at the Ministry of Economy and Finance says, - "The budget deficit is considered a natural condition for the growth of developing countries."
However, starting in 2023, the state budget deficit is planned to be capped at 3% of GDP. As of now, there are no specific plans to reduce the current year's budget expenses.
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