Uzbekistan’s state budget expenditures mainly account for social sphere

Finance Materials 1 March 2021 17:28 (UTC +04:00)
Uzbekistan’s state budget expenditures mainly account for social sphere

BAKU, Azerbaijan, Mar. 1

By Klavdiya Romakayeva - Trend:

Expenditures from the state budget of Uzbekistan in 2020 mainly fell on the social sector with an increase of 1.3 times compared to 2019, Trend reports referring to the Ministry of Economic Development and Poverty Reduction of Uzbekistan.

According to the ministry, state budget revenues in Uzbekistan in 2020 amounted to 161.7 trillion soums ($15 billion), while expenses amounted to 187.4 trillion soums ($17.9 billion).

It is reported that most of the proceeds came from direct taxes amounting to 43.8 trillion soums ($4.2 billion). It is noted that the share of direct taxes in total budget revenues increased from 25.4 percent to 33 percent.

At the same time, indirect tax payments amounted to 47.8 trillion soums ($4.5 billion), which is 3.7 percent less than last year. The share of indirect taxes in budget revenues decreased from 44.3 percent to 35.9 percent. The decrease in revenues from this type of tax is associated with a decrease in revenue from value added tax by 11 percent, as well as by 31.7 percent from turnover tax.

In addition, budget revenues from resource payments and property tax amounted to 21.3 trillion soums ($2 billion) and increased by 8 percent compared to last year. However, their share in budget revenues decreased from 17.5 percent to 16 percent.

“Losses from indirect taxes and resource payments were associated with the restriction of economic activity during the coronavirus pandemic, the provision of tax incentives and preferences to business entities, as well as a decrease in external demand,” the Economic Development Ministry said.

It is reported that most of the expenses in Uzbekistan in 2020 accounted for the social sphere amounting to $7 billion, which is 1.3 times more than in 2019.

In particular, the healthcare expenses amounted to $1.8 billion (an increase of 1.5 times), expenses on education - $2.8 billion (4.3 percent), expenses on culture and sports - $218 million (7.9 percent), expenses on science - $78 million (of 1.3 times).

In addition, the costs of paying pensions, providing material assistance and compensation, as well as increasing employment, supporting women and youth amounted to $903 million (1.6 times).

Also, $1.5 billion were allocated for the needs of the economy (an increase of 1.2 times) and $152 million were allocated for servicing the state debt (1.5 times).

At the same time, financing of centralized investments decreased by 7.7 percent compared to 2019 and amounted to $1.8 billion.


Follow the author on Twitter: @romakayeva