Wednesday, 08, January, 2025

Ministries, departments, governor and mayor offices in Uzbekistan have been instructed to take all necessary steps to save and improve the efficiency of budget-provided funds in 2025 based on the principle of " cost effectiveness and stability". This is envisaged by the president’s December 25 Measures to ensure the performance of the 2025 state budget Decree.

Additional expenses that may lead reaching the maximum budget deficit (at 3% to GDP this year) will be allowed only if there are additional revenues or by reducing other expenditure items.

At the same time, government bodies are banned from making proposals to increase the salaries of personnel (except for raising the minimum wage), purchasing official cars (with the exception of special vehicles), purchasing lavish furniture and office supplies (with the exception of education, healthcare, agriculture and water management sectors) at the expense of additional sources of local budgets.

The purchase of official cars, expensive furniture and office supplies from off-budget funds of ministries and departments is possible only with the consent of the Cabinet of Ministers.

When drawing up the budget estimates for budget-financed organizations for 2025, expenses on furniture and office supplies should be reduced by 10% compared to 2024 (with the exception of educational and medical institutions).

When forming budget expenditure parameters, governor and mayor offices are prohibited from allowing a shortage of funds for salaries, medicines, food and utilities. They are also prohibited from creating additional staff units that are not supported by the regulatory framework, at the expense of local budgets and their additional sources.

Holding an event without a specific source of funding is not allowed.

From January 1, 2025, expenses for the maintenance of healthcare institutions at the district and city levels will be transferred to funding from the republican budget of Karakalpakstan, provincial budgets and the budget of Tashkent city.

Budgets of districts and cities will be formed according to expenditure areas in accordance with the approved appendices.

In October, when discussing the parameters of the state budget, the president emphasized that it was necessary to reflect the interests of the people in the state budget, as well as optimize expenses and begin this process at large state-owned enterprises. He pointed out that many countries have included optimization of expenses in their economic strategy.

On December 24, Shavkat Mirziyoyev signed the law on the state budget of Uzbekistan for 2025. GDP growth is projected at 6%, inflation at 7-8%. The limit on the consolidated budget deficit has been reduced from 4% to 3% of GDP (49.3 trillion soums), the limit on external borrowing has been increased to 5.5 billion dollars.

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