Presidential decree targets budget efficiency with cuts to service vehicles, furniture, and office equipment

The decree stipulates that first-level budget managers, the Cabinet of Ministers of Karakalpakstan, and regional governments must take all necessary measures to reduce budget expenditures and improve efficiency in 2025.

Additional spending from the state budget and state-targeted funds that could lead to an increase in the consolidated budget deficit will only be allowed if there is an additional source of income or if savings are made by cutting other expenses.

By the end of the year, the following proposals are prohibited:

- Increasing the salaries of management staff in the executive bodies of the republic (with the exception of increases to the minimum wage);

- Purchasing service vehicles (except for special vehicles), expensive soft furniture, and office equipment (except those used in the education, science, healthcare, and agriculture and water management sectors) from the additional sources of the budgets of the Republic of Karakalpakstan, regional budgets, and the Tashkent city budget;

- Purchasing service vehicles (except for special vehicles), expensive soft furniture, and office equipment from extra-budgetary funds of the executive bodies of the republic can only be done with the approval of the Cabinet of Ministers.

In the process of planning the expenditure estimates for budget organizations in 2025, it has been instructed that the purchase of furniture, office equipment, and material resources should be reduced by 10% compared to 2024 (excluding kindergartens, general education schools, and healthcare institutions).

Local government bodies are strictly prohibited from:

- Allowing a shortage of funds for salaries and related payments, purchasing food products, medicines, and utility services while forming budget expenditure parameters;

- Maintaining additional staff positions without a legal basis using local budget funds or its additional sources;

- Implementing activities without clearly defined funding sources.

Starting from January 1, 2025, the maintenance expenses of healthcare institutions previously funded by district (city) budgets will be transferred to the Republic of Karakalpakstan’s state budget, as well as the regional budgets of the provinces and the Tashkent city budget.