The Ministry of Economy and Finance of Uzbekistan has released detailed information regarding the inflows and outflows of the republic's budget for the initial five days of February 2024, shedding light on the nation's fiscal situation.
.jpg)
As per to the ministry's report, the state budget's income and receipts from February 1 to 5 totaled UZS 1.7 trillion (over $138 mn). However, this amount pales in comparison to the budget's expenses, which soared to UZS 9.9 trillion (approximately $808.8 mn) during the same period. Consequently, the five-day budget deficit reached a staggering UZS 8.2 trillion (approximately $666 mn), emphasizing significant fiscal challenges faced by the government.
The concerning trend of budget deficits is not new, as highlighted by the ministry's data. In January 2024, state budget expenditures outpaced revenues by UZS 5.8 trillion (approximately $471 mn), indicating a persistent imbalance in financial management.
Over the past four years, Uzbekistan has consistently grappled with budget deficits surpassing established limits. Despite setting a conservative deficit limit of 3% for the consolidated budget in 2023, the actual deficit ballooned to 5.5%.
The consolidated budget for 2024 was approved with a deficit projection of UZS 52.6 trillion (approximately $4.3 bn), with the country's budget law stipulating that the deficit should not exceed 4% of the gross domestic product (GDP).
In an effort to address the budget shortfall, Uzbekistan plans to attract limited state foreign debt amounting to $5 bn this year. Of this amount, half, or $2.5 bn, is earmarked for financing the state budget deficit, while the remaining $2.5 bn will be allocated for financing crucial investment projects.
Earlier Daryo reported that the analysis reveals that cash deposits into banks increased by 20% throughout the year, totaling UZS 414 trillion (equivalent to approximately $33.2 bn). Despite this considerable rise, the proportion of cash within the total deposits decreased from 66% to 62%, compared to 2021 when it was at 69%. In contrast, deposits made through terminals experienced a significant surge of 44%, amounting to UZS 255 trillion (around $20.4 bn). This increase resulted in their share rising from 34% to 38%, compared to the 31% recorded in 2021.
Comments (0)