Government imposes restrictions on unnecessary expenses in the 2025 budget

Officials in Uzbekistan have been instructed to cut back on unnecessary expenditures related to official cars, expensive soft furnishings, and office equipment. This directive is outlined in the Presidential Decree titled "On Measures to Ensure the Implementation of the Law of the Republic of Uzbekistan 'On the State Budget of the Republic of Uzbekistan for 2025'," signed on December 25, 2024.

As part of this decree, first-level budget fund allocators—including the Council of Ministers of the Republic of Karakalpakstan, regional and Tashkent city governments—are required to adopt measures to conserve budgetary resources and improve their efficiency in 2025. These efforts must be based on the principle of "ensuring economy and sustainability."

Additional expenditures drawn from the State Budget of the Republic of Uzbekistan or state target funds, which could potentially increase the already limited consolidated budget deficit, are permitted only if there are new sources of income or through reductions in other areas of spending.

The decree also imposes a ban on submitting proposals for the following:

- Increases in the salaries of management staff in executive bodies (except for raises in the minimum wage);
- The purchase of official cars (excluding special vehicles), expensive upholstered furniture, and office equipment (with the exception of those required for education, science, healthcare, agriculture, and water management) from additional sources of the Republic of Karakalpakstan's budget, regional budgets, or Tashkent's local budget.

Official cars (except for special vehicles), costly soft furniture, and office equipment can only be purchased from the executive bodies' extra-budgetary funds with prior approval from the Cabinet of Ministers.

When preparing the cost estimates for 2025, budgetary organizations must reduce their spending on furniture, office equipment, and material reserves by 10% compared to 2024. Exceptions apply to preschool educational organizations, general education schools, and healthcare institutions.

Local government bodies are strictly prohibited from:

- Allowing a shortfall in funds for wages, equivalent payments, food, medicine, or utilities when establishing budget expenditure parameters;
- Maintaining staff positions without a legal basis at the expense of local budgets or their additional sources;
- Implementing initiatives without clearly defined sources of financing.

Additionally, starting January 1, 2025, the costs of maintaining healthcare institutions financed by district or city budgets will be transferred to the republican budget of the Republic of Karakalpakstan, as well as regional budgets and the budget of the city of Tashkent.