State budget of Uzbekistan for 2021 may be adopted with a deficit

On October 28, the Ministry of Finance published comments on the draft law “On the State Budget of Uzbekistan for 2021”.

The draft law is developed in accordance with Article 83 of the Budget Code of the Republic, it consists of 18 articles and 10 appendices.

It is noted that the main directions and indicators of macroeconomic policy for 2021 are formed based on the expectations that the coronavirus pandemic will continue next year.

“The main focus will be on maintaining macroeconomic stability, moderate fiscal stimulus measures, and ensuring that economic growth rates exceed 5 percent. According to a number of international financial institutions, in 2021, the country’s economic growth is forecasted at around 5 percent.

Next year, the forecasted GDP growth rate is expected to reach 5.8 percent in industry, 6.4 percent – in services and 2.7 percent – in agriculture,” the statement reads.

It is reported that in 2021, the inflation rate is expected to be around 10 percent. These development indicators will be achieved through the qualitative continuation of the structural reforms initiated in each area.

“Revenues of the state budget in 2021 are expected to be 147.0 trillion soums, expenditures – 149.7 trillion soums (excluding transfers to state targeted funds), revenues of state trust funds are forecasted at 26.2 trillion soums and expenditures – 40.7 trillion soums,” the ministry said in a statement.

It is planned to allocate 15.9 trillion soums from the budget to state trust funds.

“Next year the state budget and the state trust funds are expected to have a deficit of 17.2 trillion soums, 2.5 percent of the projected GDP,” the ministry said.