Consolidated budget deficit narrows to 1.9% of GDP in first half of 2025

The Ministry of Economy and Finance has published data on the execution of the state budget for the first half of 2025, detailing the dynamics of revenue and expenditure, the composition of subsidies, and major financial flows.

Revenues

In January–June 2025, state budget revenues reached UZS 144.2 trillion – up 19.2% compared with the same period last year (UZS 121 trillion).

Value-added tax (VAT) remains the largest source of revenue, both in absolute terms and in growth, with receipts increasing by 34% to UZS 35.9 trillion. Profit tax was the second-largest contributor, with revenues rising by just 2% to UZS 22.5 trillion.

Personal income tax (PIT) collections amounted to UZS 19.9 trillion – 18% more than a year earlier.

Other notable figures for the reporting period:

• Subsoil use tax – UZS 10.3 trillion (+12%)
• Excise tax – UZS 10.0 trillion (+16%)
• Customs duties – UZS 5.4 trillion (+15%)
• Land tax – UZS 4.8 trillion (+20%)
• Property tax – UZS 4.1 trillion (+17%)
• Turnover tax – UZS 1.6 trillion (+23%)

These taxes and customs duties together account for 80% of budget revenues. The remaining 20% – classified as “other revenues” such as proceeds from privatization, dividends, leasing of state property, and more – grew by 25% to UZS 29.3 trillion.

Expenditures

In the first half of the year, state budget expenditure amounted to UZS 173.3 trillion – up 13.4% year-on-year.

The largest spending items were:

• Wages – UZS 62 trillion (+15%)
• Social benefits – UZS 11.4 trillion (–2%)
• Transfers to the State Health Insurance Fund – UZS 10.5 trillion
• Transfers to the Pension Fund – UZS 10.3 trillion (+51%)
• Energy subsidies – UZS 8.9 trillion (–17%)

These five categories together accounted for 59% of total state budget spending.

The share of wages in total expenditure decreased from 36% to 35.8%, while the share of social benefits dropped from 7.7% to 6.6%.

Some expenditure items saw sharp growth. Transfers to the State Health Insurance Fund reached UZS 10.5 trillion – the 2024 half-year budget report did not break out separate data for this fund. Under the 2025 State Budget Law, UZS 22.3 trillion in transfers to the fund are planned, compared with just UZS 4 trillion under the 2024 law.

In addition, road maintenance and repair costs more than doubled (+115%) to UZS 1.7 trillion in the first half of 2025. Spending on fixed assets increased by 30% to UZS 2.6 trillion, while interest payments rose by 23% to UZS 8.6 trillion.

Subsidies

Total subsidies from the state budget in January–June 2025 amounted to UZS 15 trillion – 2% less than in the same period of 2024.

Of this amount, UZS 8.9 trillion went to the energy sector, including UZS 7 trillion to cover the losses of UzGasTrade (compared with UZS 9.3 trillion a year earlier) and UZS 1.6 trillion to compensate losses of heat supply companies.

Under the 2025 State Budget Law, UZS 7 trillion was allocated for the year to cover UzGasTrade’s losses and finance its ongoing operations as the specialized company for wholesale purchases and sales of natural gas on the domestic market. Based on the half-year results, this entire annual allocation has already been used.

Subsidies to sectors other than energy totaled UZS 6.1 trillion, most of which (UZS 4.5 trillion) were classified as “socially significant subsidies.” This category includes UZS 1.8 trillion for private preschools, UZS 1.1 trillion to compensate public transport losses, and UZS 0.9 trillion in housing purchase subsidies.

Consolidated budget

Uzbekistan’s consolidated budget includes the state budget, state-targeted funds, the Reconstruction and Development Fund, and extra-budgetary resources of budgetary organizations.

In the first half of 2025, consolidated budget revenues reached UZS 209.1 trillion and expenditures UZS 241.7 trillion. Revenues grew by 23% year-on-year, while expenditures increased by 18%. The resulting deficit of UZS 32.6 trillion was equivalent to 1.9% of projected annual GDP (down from 2.4% a year earlier).

Spending under state programs financed from external debt totaled UZS 4.9 trillion, compared with UZS 5.9 trillion in the same period of 2024.

For reference, the 2025 consolidated budget deficit was approved at UZS 49.5 trillion, or 3% of projected GDP. This year, the government plans to raise USD 3 billion in external debt to finance the budget deficit and an additional USD 2.5 billion to fund investment projects.