Gov’t unable to keep budget deficit within specified limit; expenditures more by $2.5 billion than revenues

We are talking only about the state budget. It is part of the consolidated budget, which also includes the budgets of state special purpose funds, off-budgetary funds of budgetary organizations, and funds of the Reconstruction and Development Fund (sovereign fund). The minister did not release the information on the consolidated budget.

According to him, in the first six months of 2023, state budget revenues amounted to 100 trillion soums (76 trillion soums were provided by the Tax Committee, 24 trillion soums by the Customs Committee), this is only 8% more than the figure for the same period last year (92.6 trillion soums).

Budget expenditures exceeded 129 trillion soums, which is 25.3% more than last year’s figure (103 trillion soums). Of this, 65 trillion soums were directed to the social sphere, Jamshid Kuchkarov said.

Thus, state budget expenditures exceeded revenues by 29 trillion soums. Considering that the country's gross domestic product was 469.9 trillion soums during this period, the state budget deficit (not the consolidated budget) reached 6.18%.

It should be noted that the government predicted that the positive difference between revenues and expenses of the State budget for this year will be equal to 4.2 trillion soums. In particular, in 2023, revenues should amount to 232.1 trillion soums, and expenses – 227.9 trillion soums.

The deficit was expected to occur due to the fact that the expenses of the state trust funds exceeded their revenues by 28.9 trillion soums. But this information was not made public.

The consolidated budget deficit (state budget + budgets of state special funds, off-budgetary funds) was forecasted in the amount of 32.5 trillion soums (about 3% of GDP).

According to the law on the state budget, Uzbekistan can attract only $2 billion of foreign debt to support the state budget. Deputies of the Legislative Chamber did not ask questions about the execution of the budget. Jamshid Kuchkarov did not give information about what is planned to cover the deficit.

Financier Otabek Bakirov noted that budget discipline has been completely lost in Uzbekistan in recent years, and post-factum approval of expenditures has become the norm. it should be recalled that last year, when the government asked to increase the budget deficit limit, MP Daniyor Ganiyev said: “If we approve the funding for the divided expenses in November, it will leave the parliament in a disadvantageous situation”.