ENHANCING UZBEKISTAN’S STATE BUDGET SYSTEM: TRENDS, CHALLENGES AND REFORM RECOMMENDATIONS

Аннотация

Abstract. This study analyses Uzbekistan’s consolidated budget revenues and expenditures from 2019 to 2024, drawing on detailed official data. A descriptive, historical-comparative analysis is employed to identify key trends in fiscal indicators. We find robust revenue growth – roughly doubling over six years – driven by expanding corporate income tax receipts, a steadily rising VAT base, and the introduction of a large turnover tax. Total expenditures nearly tripled in the same period, led by social support (notably pensions and welfare transfers) and rapidly increasing debt service costs. Fiscal deficits widened until 2023 (peaking at 5.5% of GDP) but have recently narrowed (to about 3.2% in 2024) under fiscal consolidation efforts. Based on these findings, we recommend comprehensive reforms: broadening the tax base and improving tax administration; rationalizing and targeting subsidies; consolidating off-budget funds into the main budget; and strengthening transparency and public financial management (PFM) through better reporting, parliamentary oversight, and modern budgeting practices