Uzbek Senate approves 2024 budget with deficit of 4% of GDP

TASHKENT. Dec 20 (Interfax) - The Uzbek Senate approved the country's 2024 budget with a deficit equivalent to 4% of GDP at its plenary session on Wednesday.

"It was noted during the debate that GDP growth in the country is projected to be 5.6%-5.8% in 2024. The law formed a consolidated budget with a deficit of 52.6 trillion sum, or 4% of GDP. The consolidated budget's revenues for 2024 are projected at 375 trillion sum, and the expenditures at 427.6 trillion sum," the upper house's press service said.

The state budget's revenues stood at 270.4 trillion sum, while its expenditures totaled 312.9 trillion sum, including transfers to state trust funds.

Uzbekistan is determining the main avenues of its tax policy and will keep the key tax rates unchanged.

The state trust funds' revenue and spending (not including inter-budgetary transfers) are expected to stand at 55.2 trillion sum and 85.8 trillion sum, respectively.

The focus of budget spending on the social sector will also be maintained in 2024. Around 50% of the overall budget expenditures, or 151.5 trillion sum, will be spent on education, healthcare, social protection, the development of science, culture and sports, steps to provide accommodation to those in need, and other social programs.

"During the debate, senators gave special attention to ways to increase the budget's revenue. They discussed how to reduce the shadow economy, the effective and appropriate use of budget funds, [and] ways to ensure the effectiveness of allocated funds," the press service said.

The legislation is intended to help expand the budget's revenue base, determine the country's tax policy, promote a healthy lifestyle, and encourage environmental protection measures, the press service said.

The state budget bill will now be submitted to the president for signing.

The Senate also approved amendments to the 2023 budget that raised the maximum deficit from 3.5% to 5.5% of GDP.

The originally approved deficit was 3% of GDP or 32.5 trillion sum.

The ceiling on direct and guaranteed external borrowing was raised from $4.5 billion to $5.5 billion to offset additional spending.