In a strategic move to ensure macroeconomic stability, Uzbekistan has placed it at the forefront of its reforms for 2024. This declaration was made by First Deputy Adviser to the President of Uzbekistan, Timur Ishmetov, during a discussion on April 2, held by the Ministry of Economy and Finance to review the implementation of presidential decree measures aimed at reforming ten key areas, as it was disclosed by Gazeta.uz
The discussion, attended by prominent officials including Presidential Advisor Ravshan Gulyamov and Deputy Prime Minister, Minister of Economy and Finance Jamshid Kuchkarov, underscored the critical importance of macroeconomic stability in driving national progress. Ishmetov stated, this stability forms the cornerstone of all ongoing and future reforms, with the overarching goal being the improvement of the populace's well-being.
Moreover, the government plans to develop strategies for improving public financial management, aiming for a reduction of the budget deficit to 3% of GDP by 2025. Ishmetov emphasized the importance of fiscal rules in ensuring financial discipline and sustainability, hinting at potential revisions and expansions of existing rules.
Addressing revenue concerns, Ishmetov highlighted the potential for increased tax revenues through expanded tax bases and improved tax administration. He projected additional revenues of up to 1% of GDP annually in the medium term, following discussions with the IMF.
Looking ahead, Uzbekistan aims to transition to results-based budgeting by 2026-2027, aligning state financial statistics with international standards. Results-based budgeting, a methodological approach to budget planning and execution, emphasizes the allocation of resources based on state goals and priorities, as well as the monitoring of spending effectiveness.
Furthermore, Ishmetov stressed the importance of conducting all public procurement through tenders to enhance efficiency and create opportunities for private entrepreneurs. This shift aims to optimize budget expenditures while fostering a competitive marketplace.
Despite the multifaceted nature of these reforms, Ishmetov emphasized their collective contribution to ensuring macroeconomic stability and fostering economic growth.
Earlier Daryo reported that the country's consolidated budget in 2023 recorded a deficit of UZS 59 trillion ($4.7 bn), representing 5.5% of the Gross Domestic Product (GDP). Revenue for the fiscal year amounted to UZS 321 trillion ($25.4 bn), while expenditures stood at UZS 380 trillion ($30 bn), resulting in a shortfall of UZS 59 trillion ($4.7 bn).
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