The Central Bank is optimistic that there will be a decrease in budget expenditures in the coming year. The Ministry of Economy and Finance has formulated a draft state budget for 2024, anticipating a deficit equal to 4% of the Gross Domestic Product (GDP). Chairman of the Central Bank, Mamarizo Nurmuratov, shared this information during a press conference on October 26.
Deputy Chairman of the Central Bank, Bekhzod Khamraev, emphasized that the Uzbekistani economy will follow the primary scenario next year, with reforms serving as the principal driving force. The main objectives are to introduce market mechanisms and reduce the state's involvement in the economy. These will be central to economic development over the medium term.
In the baseline scenario, the regulator anticipates the commencement of fiscal consolidation in 2024. This is expected to contribute to a reduction in inflation rates and improved budget discipline.
Nurmuratov, the head of the Central Bank, noted that the state budget for the coming year has been designed with a projected deficit of 4% of the GDP. He reiterated the accuracy of this figure and highlighted that the budget for the upcoming year was devised with a 4% deficit as a cornerstone.
Recently, the Central Bank has prepared two development scenarios extending until 2026 - one basic and one alternative. These scenarios account for the high degree of uncertainty in external markets, the status of commodity and financial markets, and the pace of implementation of structural reforms.
At the close of the first eight months of this year, the state budget deficit approached UZS 40 trillion ($3.2bn), a significant variance from the surplus of UZS 4.24 trillion ($327mn) forecasted by the state budget law for 2023. Furthermore, the law stipulates a limit of a 3% deficit relative to the GDP, a threshold that was more than doubled in the first half of the year.
Earlier it was reported that the Central Bank intends to enforce stricter regulations for issuing car loans to the population.
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