Uzbekistan outlines plans to address 2025 budget deficit

Uzbekistan anticipates a consolidated budget deficit of 49.3 trillion UZS in 2025, equivalent to 3% of its gross domestic product (GDP). This figure is part of a multi-year fiscal projection, with deficits expected to remain at the same GDP ratio in 2026 and 2027, amounting to 55.5 trillion UZS and 64.1 trillion UZS, respectively. These estimates were disclosed in the "Citizen's Budget," a draft document detailing next year’s financial framework.

To bridge the 49.3 trillion UZS deficit and repay 46.1 trillion UZS in principal debt, the government plans to tap into various funding sources, including external and domestic channels.

External funding sources

•  International Loans and Eurobonds: Uzbekistan aims to secure 38.3 trillion UZS through loans from international financial institutions and the issuance of Eurobonds.
•  Project-Specific Loans: An additional 18.8 trillion UZS will be raised to support state-targeted programs.

Domestic funding sources

•  Treasury Bonds: The government plans to issue treasury bonds worth 25.2 trillion UZS.
•  Privatization Revenue: Proceeds from privatizing state assets are expected to bring in 10 trillion UZS.
•  Loan Repayments: Budget loans disbursed in previous years are projected to return 3.1 trillion UZS.

Earlier reports indicated that Uzbekistan plans to attract $5.5 billion in external loans in 2025. Of this, $3 billion will be allocated to support the state budget, while $2.5 billion will fund investment projects. The issuance of government securities worth 30 trillion UZS is also planned for the coming year.