October 31 this year in the committees of the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan submitted the draft Law of the Republic of Uzbekistan “On the State Budget of the Republic of Uzbekistan for 2024” and “Budget Message”.

The draft Law of the Republic of Uzbekistan “On the State Budget of the Republic of Uzbekistan for 2024” consists of 17 articles and 11 annexes defining the main parameters of the State Budget of the Republic for the coming year.

The main directions of fiscal policy for 2024-2026 are defined as:

• not to exceed the consolidated budget deficit from 4% to GDP in 2024 and 3% to GDP in 2025-2026;
• reduction of the budget deficit will serve to regulate the growth of aggregate demand in the economy and, in turn, reduce the negative deficit of the foreign trade balance and inflationary pressure;
• maintaining the main tax rates unchanged in the medium term;
• expanding the revenue base of the budget, revision and gradual abolition of tax and customs privileges granted depending on their effectiveness and efficiency;
• gradual harmonization of tax and budget policy with the requirements of the World Trade Organization;
• taking all measures to ensure that public debt does not exceed the macroeconomic safe level of 60 percent of GDP, while not exceeding 50 percent of GDP in the medium term;
• phased full implementation of the “result-oriented budget” system in the formation of the annual budget;
• prioritizing spending on human capital development and strengthening the targeting of social protection;
• increasing wages and pensions at least at the rate of inflation;
• ensuring budget openness and further increasing citizen participation in budgeting;
• improving and strengthening internal control and internal audit in the public sector;
• reflection of the national Sustainable Development Goals in the preparation and consideration of the draft State Budget; 
• phased introduction of the principles of “green budgeting”;
• ensuring compliance with the Public Investment Management Assessment (PIMA) criteria;
• ensuring the priority of ecological and environmental protection measures, measures for adaptation to climate change, measures contributing to the reduction of water consumption and its economic use;
• optimization of budget expenditures in all spheres, directing the saved funds to highly efficient socio-economic activities.

In accordance with the draft law, the following key indicators are established:

In 2024, the GDP growth rate of the Republic of Uzbekistan is projected at the level of 5.6-5.8 percent, with industrial output growing by 6 percent, construction works by 6.3 percent, agriculture by 4 percent and market services by 14.9 percent.

The achievement of the priorities and objectives of the “Strategy of Uzbekistan 2030” and the national sustainable development goals, in particular, was mainly taken into account:

– By 2030, to increase the volume of the economy by 2 times and enter the number of “upper-middle income countries”, bringing GDP to 160 billion dollars, or 4 thousand dollars per capita;

– by ensuring the growth of investment in fixed capital by an average of 7% per year in the next 7 years, it is planned to absorb more than 250 billion dollars of investment in fixed capital and attract more than 110 billion dollars of foreign investment, and by 2030 to bring annual exports to 45 billion dollars, based on other key objectives.

In 2024, the forecast of consolidated budget revenues is 375.0 trillion soums and expenditures is 427.5 trillion soums, consolidated budget deficit of 52.5 trillion soums or 4 percent to GDP.

In addition, the State Budget revenues amount to 270.6 trillion soums, expenditures – 312.8 trillion soums, taking into account transfers to state trust funds.

Revenues and expenditures of state trust funds (excluding inter-budget transfers) are planned at 55.4 trillion soums and 86.8 trillion soums respectively.

The social orientation of budget expenditures will also be preserved next year, including 48% of the total State Budget expenditures, or 151.4 trillion soums, will be allocated for the development of education, health care, social protection, science, culture and sports, housing for the needy and other social activities. At the same time:

102.5 trillion soums is planned for human capital development, which is 13.5 trillion soums more than compared to 2023. Of them, 56.4 trillion soums are planned for preschool and school education, 12.7 trillion soums for the development of personnel training system, 33.4 trillion soums for healthcare.

A total of 18.6 trillion soums is planned for the general expenditures on social protection, of which 10.3 trillion soums are planned for the expenditures of child allowances and material assistance to low-income families.

Also, in the draft budget for 2024 by doubling the volume of centralized investments in general education schools it is planned to create 170 thousand new educational places and reduce the shift ratio, and for these purposes it is envisaged to allocate 4.1 trillion soums.

In 2024, 53.1 trillion soums will be allocated from the State Budget for the implementation of state programs and measures adopted in accordance with the decisions of the President and the Government of the Republic of Uzbekistan.

The full text of the Law on the State Budget for 2024 and the Budget Message can be found on the official pages of the Ministry of Economy and Finance.

Source: The Ministry of Economy and Finance of the Republic of Uzbekistan