The Ministry explained the increase of the budget deficit over the specified limit by the increase in investment costs in the social sphere, economy and population support, as well as social and production infrastructure. 47% of the deficit was covered by borrowing from international financial institutions.
The Ministry of Economy and Finance published the publication "Budget for Citizens: Implementation of 2022".
According to the data, by the end of 2022, the deficit of the general fiscal balance of the consolidated budget was implemented within the established norms and amounted to 35.2 trillion soums (4% of GDP).
"The increase of the deficit from the planned amount of 25.5 trillion soums or 3% of the GDP in the beginning of 2022 is mainly explained by the increase in investment costs in the social sphere, economy and population support, as well as social and production infrastructure," the official release said.
The following sources were directed to cover the consolidated budget deficit (35,229 billion soums).
External sources amounted to 22.4 trillion soums, of which:
• 16,668 billion soums at the expense of debt funds of international financial institutions and issuance of Eurobonds;
• debt funds raised for the implementation of state programs - 5,733 billion soums.
Internal sources amounted to 10.87 trillion soums, of which:
• 1,949 billion soums from the balance funds at the beginning of the year;
• proceeds from the privatization of state assets - 4,500 billion soums;
• 6,379 billion soums from the issuance of state treasury bonds.
According to sources, 47% of the deficit was covered by borrowing funds from international financial institutions and issuing Eurobonds. Treasury bonds were the second largest source of deficit financing.
It should be recalled that at the end of last year, the 2022 budget law was amended, and the republic's consolidated budget deficit was increased from 3% to 4%. As a result, expenses increased by 22.95 trillion soums.
Timur Ishmetov, the former finance minister, explained the increase in budget expenses as a result of the increase in subsidies for electricity and gas, in return for the non-increase in tariffs.
Earlier, it was reported that it is proposed to increase the limited amount of the 2023 state budget deficit to GDP by 5%. At the beginning of this year, the limit was set at 3%.
At the beginning of August, it became known that the expenses of the state budget exceeded 29 trillion soums in the 6 months of 2023.