The Uzbek government will reduce its state budget allocation for benefits and material assistance in 2026, while increasing subsidies—especially for the energy sector—according to the latest Fiscal Strategy published by the Ministry of Economy and Finance.
In 2026, spending on benefits and material support will drop to UZS 16.5 trillion ($1.3bn), down UZS 900bn ($70.5mn) from the expected UZS 17.4 trillion ($1.4bn) in 2025. This marks a shift from earlier projections released in November 2023, which had anticipated UZS 24 trillion ($1.9bn) in spending for benefits and compensation payments by 2026.
In 2024, UZS 10.3 trillion ($807.2mn) was allocated for child benefit payments to low-income families. According to new projections, this amount has decreased to UZS 7.3 trillion ($572mn)—a reduction of UZS 3 trillion ($235mn) for the current year.
Meanwhile, the government plans to significantly boost subsidies over the next three years. According to the fiscal roadmap, total subsidies will reach UZS 28.3 trillion ($2.2bn) in 2025, increasing to UZS 30.2 trillion ($2.4bn) by 2028. The energy sector will remain the primary recipient of these funds, particularly natural gas.
Authorities confirmed that natural gas will continue to be sold to households below production cost, with the budget covering the difference. In 2025, UZS 7 trillion ($548.6mn) will be allocated to subsidize gas—1 trillion ($78.4mn) more than previously planned. For 2026, the figure has been revised upward from UZS 5 trillion to UZS 6.5 trillion ($391.8mn - $509.4mn)
These adjustments come amid broader fiscal pressures. Data on budget execution for the first quarter of 2025 revealed a UZS 500bn ($39.2mn) reduction in public sector wage payments compared to the same period in 2024. During the same timeframe, spending on benefits and compensation was cut by nearly UZS 1 trillion ($78.4mn), while interest payments on state debt rose by UZS 800bn ($62.7mn).
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