Ministries, agencies and hokimiyats in Uzbekistan have been instructed to take all necessary measures to save and improve the efficiency of budgetary funds in 2025 based on the principle of “economy and ensuring stability”. This is outlined in the president Shavkat Mirziyoyev’s decree dated 25 December.
Additional expenses that may lead to exceeding the maximum budget deficit level (set at 3% of GDP for the year) will only be allowed if there are additional revenues or reductions in other expenditure items.
Government bodies have been prohibited from proposing salary increases for management personnel (except for raising the minimum wage), purchasing official vehicles (except for specialized vehicles) or acquiring expensive furniture and office supplies (with exceptions for education, healthcare, agriculture and water management sectors) using additional sources of local budgets.
The purchase of official vehicles, expensive furniture and office supplies from the extrabudgetary funds of ministries and agencies is only permitted with the approval of the Cabinet of Ministers.
When drafting expenditure estimates for budgetary organizations in 2025, spending on furniture and office supplies must be reduced by 10% compared to 2024 (excluding educational and medical institutions).
Hokimiyats, when forming budget expenditure parameters, are prohibited from allowing shortages of funds for salaries, medicines, food and utilities.
They are also prohibited from creating additional staffing positions not backed by regulatory and legal frameworks, using local budgets and their additional sources.
The organization of events without a specific source of funding is also not allowed.
Starting from January 2025, expenses for maintaining district- and city-level healthcare institutions will be transferred to the republican budget of Karakalpakstan, regional budgets and the budget of Tashkent city.
District and city budgets will be formed according to expenditure directions outlined in the decree.
Budget approval deadlines
By 20 January, expenditure estimates and staffing schedules of budgetary organizations must be approved, and by 25 January, they must be registered with economic and financial authorities.
Temporary estimates will only be valid for January.
The Ministry of Economy and Finance should submit a proposal to the Cabinet of Ministers by 1 September 2025 to abolish the practice of drafting temporary expenditure estimates.
In October, during discussions on state budget parameters, the president emphasized the need to reflect public interests in the state budget, optimize expenditures and begin this process at large state enterprises. He pointed out that many countries incorporated expenditure optimization into their economic strategies.
Shavkat Mirziyoyev on 24 December signed the law on Uzbekistan’s state budget for 2025. GDP growth is projected at 6%, with inflation expected to decrease to 7−8%. The consolidated budget deficit limit was reduced from 4% to 3% of GDP (49.3 trillion UZS or $3.8 billion), while the external borrowing limit was increased to $5.5 billion.
In March 2022, the head of state highlighted the need to cut budget expenditures by 10 trillion UZS, or $771.9 million. At that time, all hokimiyats, ministries and agencies were prohibited from making additional expenditures, such as building repairs, purchasing vehicles, furniture and office equipment. Additionally, they were instructed not to start construction projects without a concrete source of funding.