Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov explained why the state budget ran a surplus under the previous administration. He made the remarks on 3 December during a session of the Legislative Chamber of the Oliy Majlis.

“If you look back at history, we had a budget surplus for many years. Regarding the question of whether that was a good thing, as someone who has been working in this field, I must say no. The reason for the surplus at that time was that no one gave us loans to finance the budget deficit. I can say this officially: no one,” said Jamshid Kuchkarov.

Speaking about the fact that no loans had been provided to cover the deficit, the minister noted that the reforms now being implemented in the sector did not exist during that period.

“There were no reforms, the soum was not freely convertible, and the tax policy was different. In general, the broad set of reforms implemented over the past eight years simply did not exist then. That is why no one would give us loans to finance the budget deficit,” the Deputy Prime Minister said.

During the session, deputies raised several questions. MP Saydulla Nematov pointed out that as Uzbekistan’s economy grows, the budget deficit is also rising, citing projected figures of 51 billion soums this year, 59 billion next year, and more than 70 billion the following year.

In response to a question on whether the deficit should remain permanent, Kuchkarov said:

A large deficit is not favorable, and the International Monetary Fund holds the same view. A 3 percent deficit, he noted, is consistent with both economic theory and the practical experience of countries. This level ensures a moderate increase in public debt while preventing situations such as default or bankruptcy. Overall, he said, the question raised about the deficit was entirely justified.

He added that when a country is experiencing economic growth, the deficit can be considered as fulfilling its purpose. A deficit, he explained, means taking additional funds to stimulate the economy. “But if we borrow and the economy does not grow, that is wrong,” he said.