State budget deficit neared 6% against GDP in 9 months of 2023

During the months of January-September of this year, the state budget deficit was around 5.8-6% compared to the gross domestic product. This was announced by Sherzod Muhammedov, director of the State Budget Department of the Ministry of Economy and Finance.

“According to initial calculations, the state budget deficit in the first nine months was 5.8-6 percent against the GDP. The main reason for this is that additional funds were allocated during the year to solve the problems of citizens in the regions, additional money was given to low-income families for the payment of allowances, and the amount of wages and pensions was increased earlier than the deadlines set by the budget law. But this does not mean that the deficit will be 6 percent at the end of the year. Measures are being taken to reduce it,” said Muhammedov.

Deputy Minister of Economy and Finance Ahadbek Haydarov added that efforts are being made to prevent the budget deficit from exceeding 5.5 percent this year.

“Usually, annual budget deficit is observed. Expenditures and revenues of the state budget are seasonal in nature. In some periods, expenses are higher than income. The increase in the deficit at the end of the quarters does not mean that there will be a similar number at the end of the year. According to our calculations, the state budget deficit will not exceed 5.5 percent at the end of the year. We will take all measures in this regard,” Haydarov said.

For information, the 2023 State Budget Law sets the limited amount of the consolidated budget deficit this year at 3 percent against the GDP. According to the law, the amount of loans to support the state budget during the year, including financing the deficit, should not exceed 2 billion dollars.