Deputies and senators of Uzbekistan have once again approved amendments to the 2023 budget, resulting in a nearly $2bn increase in government spending. Despite most of the funds already being spent, the amendments were considered at the end of the year. This failure to adhere to the spending limit has necessitated the raising of the limit on external loans.
In a session held on December 21, the Legislative Chamber and the Senate of the Oliy Majlis approved the amendments to the state budget of Uzbekistan for 2023, which entail an increase in public expenditures and a budget deficit limit. The government's inability to conform to the approved costs necessitated these amendments.
The Ministry of Economy and Finance traditionally refrained from seeking parliamentary approval for increased spending throughout the year, failing to inform deputies about specific cost requirements. They introduced the bill containing the amendments towards the end of the year.
The amendments involve a significant increase in expenditures for ministries, committees, agencies, and other state bodies, amounting to UZS 24.52 tn (approximately $2 bn), bringing the total to UZS 228.26 tn ($18.5bn). Additional allocations include UZS 3.74 tn ($302.3 mn) for salary raises, pensions, and benefits, a 7% (14%) increase, and utility payments for budgetary organizations.
Allocations for social development and health sectors: An additional UZS 7.5 tn has been allocated for social development programs, including UZS 3.2 tn ($258.6 mn) for the improvement of the education sector, UZS 1.53 tn ($258,683) for incentive payments to teachers, and UZS 456bn ($36.9 mn) for the printing of new generation textbooks. The health sector receives an additional UZS 1.7 tn ($137.4 mn), with funds allocated for medical staff salaries and the development of paediatrics and pulmonology.
Increased budget deficit and external borrowing: The amendments have led to an increase in the maximum size of the consolidated budget deficit, now amounting to 5.5% of GDP, surpassing the income by approximately UZS 58.5 tn ($4.72bn). The Ministry of Economy and Finance initially anticipated a deficit of 2.4%. To support the state budget and finance investment projects, the ceiling for external borrowing under state guarantees has been raised from $4.5bn to $5.5bn.
The Legislative Chamber considered the amendments in a brief session that lasted less than 20 minutes on December 15. The document was accepted by deputies without substantial questioning. During the session, Deputy Minister of Economy and Finance Akhadbek Khaydarov highlighted that Uzbekistan's economy is expected to grow by 5.7% by year-end, with state budget revenues projected at UZS 233.6 tn ($18.9 bn).
The Senate, after posing several questions, ultimately approved the amendments to the 2023 state budget.
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