The law “On State Debt” approved at the 29th plenary session of the Senate on August 4 stipulates that the maximum amount of the state debt should not exceed 60% of the GDP.
According to the law, only social and infrastructure projects should be financed from the state debt.
Also, in accordance with the law, the powers of the president, Oliy Majlis, Chamber of Accounts, the government, the Central Bank and the Ministry of Finance in the field of public debt management are defined.
In particular, the Ministry of Finance is designated as the competent body for public debt management. In order to ensure transparency in this regard, the Ministry of Finance has decided to post information on the state of the debt and its changes on its official website every quarter of the year.
Deputy Minister of Finance Odilbek Isoqov informed that as of July 1, the amount of the state debt of Uzbekistan is $25.9 billion. $23.2 billion of it is foreign debt.
$6 billion of the public debt is allocated for budget support, $5.6 billion – for the fuel and energy sector, and $700 million – for supporting the education and health sectors.
Odilbek Isoqov explained to the senators that 60% is the highest limit for the public debt, not a goal.
"This is the highest limit, not a goal. The current state debt is 37% of the gross domestic product of Uzbekistan. It is expected to reach 40% by the end of the year. We got another 20% buffer.
Due to the crisis caused by the coronavirus pandemic, we concluded that another 10% buffer is needed. In this regard, foreign experiences have also been studied,” said the deputy minister.
