President Mirziyoyev approves Uzbekistan’s state budget for 2026

The law approves the consolidated budget parameters, the revenue forecast, and the spending ceiling of the republican budget. It also sets out projections for key macroeconomic indicators and target benchmarks for 2027–2028.

Gross domestic product is expected to rise to UZS 2.25 quadrillion. Real economic growth is forecast at 6.6 percent, with inflation projected to slow to 7 percent year-on-year. The fastest-growing sectors are expected to remain services at 14.5 percent and construction at 10.2 percent. Industrial output is projected to increase by 6.4 percent, while agriculture is forecast to grow by 4.2 percent.

Consolidated budget revenues are set at UZS 515.8 trillion, with expenditures totaling UZS 567.7 trillion. The ceiling for the consolidated budget deficit for 2026 is set at 3 percent of GDP.

The maximum volume of new external borrowing on behalf of the state and under state guarantees is capped at $5 billion, down from $5.5 billion in 2025. This includes $2.5 billion to finance the budget and $2.5 billion for investment projects.

The limit on the net issuance of government bonds remains unchanged at UZS 30 trillion. The cap on the value of new public-private partnership projects involving state obligations also remains at $6.5 billion.

Regional budgets will receive a share of value-added tax revenues – 5 percent in Tashkent and 20 percent in Karakalpakstan and the regions. An exception will apply to major taxpayers listed in a register approved by the president.

At the same time, the shares of personal income tax and corporate profit tax transferred to the budgets of Tashkent and Tashkent Region will be reduced. The capital will receive 6 percent of revenues from both taxes, down from 12 percent, while Tashkent Region will receive 33 percent, compared with the current 51 percent for personal income tax and 49 percent for profit tax.

If revenue targets are not met for six months and there are no grounds to expect fulfillment by year-end, spending will be subject to cuts. Decisions to reduce expenditures by more than 3 percent will be made by the Oliy Majlis, while reductions of 3 percent or less will be decided by the Cabinet of Ministers of Uzbekistan.

Quarterly reports on the results and effectiveness of development programs will be submitted directly by ministries and agencies after review by internal audit services. In addition, the Ministry of Economy and Finance of Uzbekistan will submit quarterly reports to the Oliy Majlis on budget allocations disaggregated by gender.