Uzbekistan’s public sector expenditures rise despite administrative reforms

In 2025, Uzbekistan’s spending on government administration and state bodies exceeded budget forecasts by nearly 20%, reaching UZS 22.3 trillion, according to data reviewed from the Ministry of Economy and Finance presentation on January 30. The increase reflects a continuing trend of actual expenditures surpassing both previous years’ outlays and initial budget plans. While spending on social benefits declined, allocations for salaries and pensions rose significantly.

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Government administration costs

Funds allocated to support government administration, justice, prosecution, and courts amounted to UZS 22.3 trillion in 2025, exceeding the planned UZS 18.6 trillion by UZS 3.7 trillion (around 20%).

The spending surge follows an administrative reform announced in December 2022, which aimed to reduce the number of independent executive bodies under the government from 61 to 28 and decrease staff levels, including management positions, by up to 30% while implementing a “fair remuneration system.” Despite these plans, expenditures have consistently grown.

In 2021, UZS 10.46 trillion was spent, nearly double the planned UZS 4.9 trillion.
In 2022, spending increased 30.5% to UZS 13.65 trillion (plan: UZS 9.16 trillion).
In 2023, allocations rose 24.5% to UZS 18.2 trillion (plan: UZS 13.8 trillion).
In 2024, UZS 20.2 trillion was spent, exceeding the planned UZS 18.03 trillion.

For 2026, authorities propose further optimization and a modest reduction to UZS 21.5 trillion.

Other budget expenditures

The largest deviations from the plan were recorded under “other expenses,” which surged to UZS 87.8 trillion, a 56% increase over the initially allocated UZS 56.3 trillion. Reserve funds for the Cabinet of Ministers and local budgets also rose sharply to UZS 3 trillion, compared with UZS 1.8 trillion planned (+66.7%).

Social spending in 2025 totaled UZS 194.9 trillion, slightly exceeding plans but accounting for a smaller share of total expenditures, dropping from 51.7% to 50.7%. Within this category:

Education funding rose to UZS 90.1 trillion (plan: UZS 84.3 trillion, +6.9%).
Healthcare spending increased to UZS 44.7 trillion (plan: UZS 41.3 trillion, +8.2%).
Culture and sports allocations grew to UZS 9.1 trillion (plan: UZS 7.1 trillion, +28.2%).

Conversely, outlays on social benefits, material assistance, and other preferential payments fell below forecasts (UZS 15.3 trillion vs. planned UZS 17.3 trillion, -11.6%), as did mortgage subsidies (UZS 2.1 trillion vs. UZS 2.5 trillion, -16%).

Economic development expenditures also exceeded initial projections:

Urban improvement projects rose by 48.9% to UZS 6.7 trillion (plan: UZS 4.5 trillion).
Funding for the “From Poverty to Prosperity” program increased by 55.2% to UZS 4.5 trillion.
“Initiative Budget” expenditures reached UZS 6.7 trillion (+11.7%).

With the UZS strengthening against the US dollar, debt servicing costs were below plan at UZS 18.1 trillion (plan: UZS 21.1 trillion, -14.2%).

Expenditures on wages, pensions, scholarships, and benefits more than doubled, rising from UZS 6.47 trillion in the plan to UZS 13.24 trillion (+105%). Additional budget amendments also allocated UZS 1.7 trillion to the Pension Fund, increasing state transfers from UZS 18.55 trillion to UZS 20.25 trillion.

The data highlights the persistent challenge of aligning Uzbekistan’s ambitious administrative and social spending plans with actual fiscal execution, even amid reforms aimed at streamlining government operations.