Авторы

DOI:

https://doi.org/10.71337/inlibrary.uz.aept.123522

Ключевые слова:

государственный бюджет бюджетные расходы экономические расходы

Аннотация

В данной статье проводится анализ структуры расходов государственного бюджета Республики Узбекистан, с особым акцентом на экономические расходы и их роль в развитии национальной экономики. Анализ охватывает объем, направления и приоритетность экономических расходов за последние годы на основе статистических данных. Кроме того, рассматриваются механизмы распределения и перераспределения доходов государственного бюджета, подчеркивая их потенциал в стимулировании экономического роста. Особое внимание уделяется государственным стратегиям, направленным на развитие «зеленой» экономики и обеспечение экологической устойчивости. Результаты исследования подчеркивают актуальность направления экономических расходов в стратегические отрасли и необходимость оптимизации и повышения эффективности их реализации.


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IQTISODIY XARAJLARNI BYUDJET MABLAG‘LARI ORQALI MOLIYALASHTIRISH

SAMARADORLIGINI OSHIRISH

i.f.d., prof.

Meyliyev Obid

Toshkent davlat iqtisodiyot universiteti

ORCID: 0000-0002-8586-8858

meyliev-obid@rambler.ru

Gofurova Kamola

Toshkent davlat iqtisodiyot universiteti

ORCID: 0009-0009-2117-8223

gofurovakamola4@gmail.com

Annotatsiya.

Ushbu maqolada O‘zbekiston Respublikasi davlat byudjeti xarajatlarining

tuzilmasi, xususan, iqtisodiy xarajatlar va ularning milliy iqtisodiyotni rivojlantirishdagi o‘rni

tahlil qilinadi.

Tahlilda so‘nggi yillardagi statistik ma’lumotlar asosida iqtisodiy xarajatlarning

hajmi, yo‘nalishlari va ustuvorlik darajasi ko‘rib chiqiladi. Shuningdek, maqolada davlat byudjeti
daromadlarini taqsimlash va qayta taqsimlash mexanizmlari o‘rganilib, ular

ning iqtisodiy

o‘sishni rag‘batlantirishdagi imkoniyatlari yoritilgan. Yashil iqtisodiyotga o‘tish va ekologik

barqarorlikni ta’minlashga qaratilgan davlat strategiyalariga ham alohida e’tibor qaratilgan.

Tadqiqot natijalari iqtisodiy xarajatlarni strategi

k sohalarga yo‘naltirish va ularni amalga

oshirish samaradorligini oshirish zarurligini ta’kidlaydi.

Kalit so‘zlar:

davlat byudjeti, byudjet xarajatlari, iqtisodiy xarajatlar.

ПОВЫШЕНИЕ ЭФФЕКТИВНОСТИ ФИНАНСИРОВАНИЯ ЭКОНОМИЧЕСКИХ РАСХОДОВ

ЗА СЧЕТ БЮДЖЕТНЫХ СРЕДСТВ

д.э.н., проф.

Мейлиев Обид

Ташкентский государственный экономический университет

Г

o

фурова Камола

Ташкентский государственный экономический университет

Аннотация.

В данной статье проводится анализ структуры расходов

государственного бюджета Республики Узбекистан, с особым акцентом на
экономические расходы и их роль в развитии национальной экономики. Анализ

охватывает объем, направления и приоритетность экономических расходов за

последние годы на основе статистических данных. Кроме того, рассматриваются

механизмы распределения и перераспределения доходов государственного бюджета,
подчеркивая их потенциал в стимулировании экономического роста. Особое внимание

уделяется государственным стратегиям, направленным на развитие

«зеленой»

экономики и обеспечение экологической устойчивости. Результаты исследования

подчеркивают актуальность направления экономических расходов в стратегические
отрасли и необходимость оптимизации и повышения эффективности их реализации.

Ключевые слова:

государственный бюджет, бюджетные расходы, экономические

расходы.

UOʻK:

316.776.3

272-278


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IMPROVING THE EFFICIENCY OF FINANCING ECONOMIC EXPENDITURES THROUGH

BUDGETARY FUNDS

DSc, prof.

Meyliyev Obid

Tashkent State University of Economics

Gofurova Kamola

Tashkent State University of Economics

Abstract.

This article analyzes the structure of budget expenditures in the Republic of

Uzbekistan, with a particular focus on economic expenditures and their role in national economic

development. The analysis covers the volume, directions, and prioritization of economic

expenditures in recent years based on statistical data. In addition, the paper explores the

mechanisms of distribution and redistribution of state budget revenues, highlighting their
potential to stimulate economic growth. The article also gives special attention to the state

strategies aimed at promoting a green economy and ensuring ecological sustainability. The

research findings emphasize the relevance of allocating economic expenditures to strategic

sectors and the necessity of optimizing and enhancing the efficiency of their implementation.

Keywords:

state budget, budget expenditures, economic expenditures.

Introduction.

Currently, in order to improve the efficiency and authority of financial institutions, it is

essential to further enhance the socio-economic well-being of the population in our country.
Therefore, it is necessary to fundamentally reform the budgetary and tax policy mechanisms

based on the experience of developed countries and to ensure strict compliance with them.

Strengthening the revenue base of local budgets will reduce the need for central government

transfers, enabling local governments to cover expenditures independently and thereby fulfill
their responsibilities to support the socio-economic conditions of the lower-income population.

Moreover, it is vital to revise the functions, methods, and forms of using budgetary

resources to ensure their more efficient allocation. Since gaining independence, Uzbekistan's

First President, Islam Karimov, placed strong emphasis on developing the economic system and

enhancing cooperation with the world’s most advanced countries and internationally

recognized companies. Reforms in the political, economic, and social spheres were

implemented under the “Uzbek Model” of development proposed by the Presiden

t. These

gradual reforms were aimed at preventing potential socio-economic crises and increasing their
overall effectiveness.

Indeed, a country's economic condition plays a key role in improving its social standing,

maintaining a competitive position in global rankings, and mitigating pressing issues that may
arise during natural disasters or unexpected ecological and economic crises.

Literature review.

“The economic

classification of budget expenditures refers to the categorization of

expenditures based on the types and directions of economic payments”

(Safarov, n.d.). Capital

expenditures are also part of economic expenditures, as they include investments in
infrastructure projects and long-term assets that have a lasting impact on the economic sector

and public welfare.

According to English economists, budget expenditures are defined as follows:

“Government expenditures represent the use of financial resources by the public sector to
achieve economic and social goals as outlined in the national budget”

(Rosen and Gayer, 2014).

This definition highlights that the primary function of the state budget is not only the

collection of revenues but also their equitable distribution and redistribution through the

expenditure process.


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Keynes (1936), in his

General Theory of Employment, Interest and Money

, strongly

supports the use of government expenditures to stimulate demand and mitigate unemployment

during economic downturns. He views government spending as a driving force for economic

recovery.

Wagner (1890), through his widely known "Wagner’s Law", claims that as an economy

grows, government expenditures naturally increase due to the expansion of administrative and

social responsibilities of the state.

According to Lerner (1943), functional finance dictates that government spending should

be adjusted to stabilize the economy, rather than constrained by traditional budgetary rules.
His theory prioritizes full employment and economic efficiency.

Lucas (1988) further contributes to this discussion by stating that public investment in

education and human capital results in higher productivity and sustainable economic growth.

He sees such expenditures as fundamental to the long-term success of the economy.

According to Weisbrod (1964), government expenditures in health and education

generate positive externalities that benefit society beyond individual recipients. He advocates

for increased public investment in these areas to improve social welfare.

Ahuja and Pandit (2020), in their empirical study of 59 developing countries, found a

strong positive correlation between government expenditures and economic growth. Their

research supports the argument that targeted and efficient budget allocations can spur

development.

The International Monetary Fund (IMF, 1995) emphasizes the importance of redirecting

unproductive public expenditures toward sectors that generate economic returns and foster
inclusive growth.

Onifade et al. (2020), in their study of Nigeria, show that capital expenditures on

infrastructure and productive sectors have a significant impact on boosting economic output

and employment.

In the same vein, Russian economists define economic expenditures as: “Economic

expenditures in the public sector refer to the allocation of financial resources from the budget

aimed at implementing state functions, supporting public infrastructure, social services, and

economic regulation”

(Gryaznova and Nikiforova, 2001).

This definition emphasizes that although economic expenditures are part of the overall

state budget, they are implemented specifically to strengthen and improve the social sphere as

well.


Research methodology

This scientific article employs several methodological approaches to study the structure

of state budget expenditures, particularly economic expenditures, using recent years’

quantitative data. The research is based on statistical analysis to examine the dynamics and

percentage share of economic expenditures within the state budget.

The analytical approach used in this article includes a detailed examination of the

composition, effectiveness, and management issues of economic expenditures. Furthermore,

the study proposes possible solutions to address these issues and improve the efficiency of

economic spending through better governance and resource allocation.

Analysis and discussion of results.

Economic expenditures function as capital investments aimed at achieving long-term

development goals, and they generate returns by increasing state budget revenues. The
allocation of financial resources to strategic sectors that contribute to economic stability

demonstrates the broad objectives and responsibilities of government budgetary spending in

fostering national economic growth.


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Such investments include the development of infrastructure, expansion of the energy

sector, improvement of transportation and communication networks, promotion of innovation,

support for tourism, and stimulation of entrepreneurship, among others.

For instance, on January 14, 2017, during an extended meeting of the Cabinet of Ministers

dedicated to reviewing the results of Uzbekistan’s socio

-economic development in 2016 and

outlining the key priorities for the 2017 economic and social program, President Shavkat

Mirziyoyev delivered a comprehensive address.

In his speech, the President emphasized the continuation of the development principles

known as the “Uzbek Model”, established under the leadership of Uzbekistan’s First President,

Islam Karimov. He noted that consistent implementation of medium-term reform, structural

transformation, and modernization programs contributed to maintaining high and stable

economic growth rates in 2016, while ensuring macroeconomic balance and improving the

standard and quality of living for the population (uz.fundamental-economic.uz, 2023).

President Mirziyoyev further proposed adopting eleven major priority tasks within the

2017 economic and social program, incorporating public suggestions received during the open

discussion of the draft Development Strategy for 2017

2021. The foremost priority, he

stressed, wa

s the implementation of the State Program “Year of Dialogue with the People and

Human Interests,” grounded in the noble principle that “Human interests come above all”. He

emphasized that these priorities must serve as the foundation for introducing serious changes

to the main directions and tasks of deepening economic reforms (uz.fundamental-economic.uz,

2023).

Table 1

Share of Economic Expenditures in the State Budget of Uzbekistan

Expenditure

s

Years

2016 2017 2018

2019

2020

2021

2022

2023

2024

2025

(forecast

)

State

Budget

expenses

(in billion

soums)

40911,3 49343,7 79736,1 118008,7 144142,7 165879,0 236578,5 257734,0 312921,0

344600,0

In

particular:

Economic

Expenditure

s (in billion

soums)

4319,5

5280,7

6957,7

18485,2

16692,8

14015,4

24547,7

22480,0

24850,0

39200,0

Share in

State

Budget

Expenditure

s (in

percentage)

10,5

10,7

8,7

15,6

11,5

8,4

10,3

8,7

7,9

11,3

Source:

prepared by the author based on data from the official website of the Ministry of Economy

and Finance of the Republic of Uzbekistan.


As a result, nearly 300 laws and over 4,000 presidential decrees were adopted between

2017 and 2021 as part of the Action Strategy for five priority areas of national development.

These reforms targeted a comprehensive transformation of all spheres of public and state life.

Furthermore, major initiatives were undertaken in fiscal and economic policy, including

liberalization of the tax and financial systems, support for entrepreneurship, guarantees of


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276

private property rights, and the development of foreign trade and agricultural processing, as
well as the accelerated development of regions.

Following public discussion, the 2022

2026 Development Strategy for New Uzbekistan

was approved under the principle of

From the Action Strategy to the Strategy for

Development”. This document outlined seven priority areas and introduced numerous new

tasks aimed at advancing the national economy (Farmon, 2022).

According to the data presented in Table 1, it can be observed that economic expenditures

accounted for an average of approximately 10% of total state budget expenditures. Specifically,

in 2016, economic expenditures amounted to 4,319.5 billion soums, which was 10.5% of the
total budget; in 2017, they reached 5,280.7 billion soums (10.7%); in 2018, 6,957.7 billion

soums (8.7%); in 2019, 18,485.2 billion soums (15.6%); in 2020, 16,692.8 billion soums

(11.5%); in 2021, 14,015.4 billion soums (8.4%); and in 2022, 24,547.7 billion soums,

accounting for 10.3% of the total budget expenditures.

It should be noted that the 2021 figures reflect a decrease in the share of economic

expenditures, largely due to the redirection of budget resources toward social sector support

amid the global socio-economic challenges caused by the COVID-19 pandemic.

Despite a downward trend in recent years, projections for 2025 indicate an increase in

the share of economic expenditures within the state budget, reaching 39.2 trillion soums, or

11.3% of total expenditures. This growth is primarily attributed to the declaration of the

current year as the “Year of Environmental Protection and the Green Economy”, during which

the state has assumed a leading role in promoting sustainable development and green

economic initiatives.

Table 2

Economic Expenditures of the State Budget of the Republic of Uzbekistan

(in billion soums)

t/r

Expenditure

2017

2018

2019

2020

2021

2022

2023

2024

2025

(forecast)

Total Economic

Expenditures

5280,7 6957,7 18485,2 16692,8 14015,4 24547,7 22480,0 24850,0

39200,0

1.

Water Management

Operating

Expenditures

1679,9

3524,2

3885,8

5028,9

4529,0

5905,8

7959,8

9151,0

9700,0

2.

Development of Public

Roads

-

3711,8

5219,1

2697,9

2200,4

2420,4

2680,4

3085,0

-

3.

Environmental

Protection Activities

-

215,0

251,9

272,5

284,0

98,6

-

-

-

4.

Geological Exploration

Works

-

594,3

587,4

1314,6

1200,0

1000,0

1090,0

900,0

900,0

5.

Improvement of

Residential Areas

1087,4

1383,1

2047,7

2678,7

2041,7

2863,0

5564,8

4465,0

4500,0

6

Housing and Utility

Services

-

512,8

857,0

471,9

909,3

1316,1

-

-

-

7.

Other Economic

Expenditires

2513,4

4158,5

5636,3

4228,1

2851,0

16849,6

5185,0

7250,0

24100,0

Source:

prepared by the author based on data from the official website of the Ministry of Economy

and Finance of the Republic of Uzbekistan.

From the data in the table, it can be emphasized that until 2018, official websites

providing information about the state budget expenditures did not fully disclose which

economic sectors the economic expenses were allocated to. The main focus was on agriculture,

irrigation in agriculture, and similar areas.

In 2018, the total economic expenditures amounted to 6,957.7 billion soums, of which

3,524.2 billion soums were spent on water management operations, 3,711.8 billion soums on

public roads, 215.0 billion soums on environmental protection, 594.3 billion soums on

geological exploration, 1,383.1 billion soums on the improvement of populated areas, 512.8


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billion soums on housing and communal services, and 4,158.5 billion soums on other economic
expenses.

In 2019, economic expenditures increased in almost all areas compared to 2018, reaching

18,485.2 billion soums. Water management operation expenses were 3,885.8 billion soums,

geological exploration expenses were 587.4 billion soums, and funds allocated for
improvement of populated areas were almost doubled compared to 2018. Development of

public roads (5,129.1 billion soums) increased by 1.3 times, housing and communal services

(857.0 billion soums) by 1.6 times, other economic expenses (3,217.9 billion soums) by 1.3

times, and environmental protection expenses reached 251.9 billion soums.

In 2020, economic expenditures were forecasted at 13,642.6 billion soums but actually

amounted to 16,692.8 billion soums. Additionally, expenses for water management operations

increased by 1.2 times to 5,028.9 billion soums, geological exploration expenses rose by 2.2

times to 1,314.6 billion soums, and 2,678.7 billion soums were spent on improving populated

areas, including 289.3 billion soums from centralized investments for financing the “Obod

qishloq” and “Obod mahalla” programs. Development of public

roads amounted to 2,697.9

billion soums, which was 1.9 times less than the previous year, and investments through

centralized funds amounted to 2,397.2 billion soums. Expenses on housing and communal
services decreased twofold to 471.9 billion soums compared to the previous year. The decrease

in economic expenditures’ share in 2020 compared to 2019 was mainly due to the COVID

-19

pandemic, as most of the state budget revenues were directed toward the social sector.

In 2021, in order to develop the economic sector and address existing issues, 14,015.4

billion soums were spent from the state budget. Specifically, water management operation
expenses were 4,529.0 billion soums, geological exploration expenses were 1,200.0 billion

soums, funds for improving populated areas were 2,041.7 billion soums, development of public

roads was 2,200.4 billion soums, housing and communal services received 909.3 billion soums,

environmental protection was allocated 284.0 billion soums, and other economic expenses
were allocated 2,851.0 billion soums.

In 2022, economic expenditures reached 24,547.7 billion soums, which was 10 times

higher than in 2021. Specifically, water management operation expenses increased 1.3 times to

5,905.8 billion soums, funds for improving populated areas rose 1.4 times to 2,863.0 billion
soums, maintenance of public roads grew 1.1 times to 2,420.4 billion soums, housing and

communal services rose 1.4 times to 1,316.1 billion soums, and other economic sector

expenditures increased 5.9 times to 16,849.6 billion soums.

However, despite the growing emphasis globally and in our country on “green economy,”

“green budgeting,” and “green sustainability,” only 98.6 billion soums were allocated for

environmental protection in 2022, which is 2.8 times less than in 2021. Furthermore, the

budget allocated for geological exploration was 200.0 billion soums less than planned.

Over the last three years, due to changes in the statistical data composition on economic

expenditures, the amount classified as other expenditures increased fourteenfold, with a
forecast of 24,100.0 billion soums in 2025. These other economic expenditures include, besides

other economic expenses, partial compensation for heating supply company expenses (1,850.0

billion soums in 2023), funds for supporting and promoting exports (178.8 billion soums),

transfers to state funds supporting entrepreneurial activities (900.0 billion soums), and partial
compensation of transport costs for exports, among others.

This year, the planned expenditures from the state budget allocated to the economy are

expected to constitute 2.4% of the gross domestic product and 11.4% of total expenditures. Of

this, the main part of nearly 9.7 trillion soums allocated for water management sector
organizations

about 6.8 trillion soums (7.1 trillion soums in 2024)

will be directed to cover

the electricity costs consumed by pumping stations. As a result, electricity consumption of 6.8

billion kWh is spent on pumping water from transboundary rivers into the country, filling


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III SON. 2025

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reservoirs, and irrigating 2.4 million hectares of crop fields, ensuring the irrigation of
agricultural lands with 32.5 billion cubic meters of water.

Currently, various ecological problems and global crises are expected and occurring. A

number of factors causing such events, including some types of economic activities, industrial

sectors, techniques used in extracting underground natural resources, and other activities,
must be reduced or optimized.

In this, the state must act as the main reformer, paying special attention to these issues in

budget revenues and expenditures, thoroughly reforming budget-tax policy and budget

systems, and making changes to certain decisions and laws.

Conclusion and suggestions.

Global political, economic, and technological changes are causing a number of damages

and pressing issues in our country’s socio

-economic system. In particular, the introduction of

the “Digital Economy” and the need to provide the social sphere with modern

technological

tools require significant budget expenditures, leading to budget deficits.

The daily development of the economy, the expansion of industrialized areas, and the

reduction of agricultural entrepreneurship sectors, as well as the increase of megacities
worldwide, have worsened the ecological situation globally. This confirms the necessity of

applying “green economy” and “green budgeting” policies in our country, as is practiced in

developed countries.

Experiences of various developed countries and economic scholars emphasize this. For

example, Fiorino (2018)

, in his book “The Good Life on a Finite Planet: The Economics of Green

Growth”, stresses that we must protect the environment not just for its own sake but because

the economy cannot exist without ecological development. This proves the importance of the

“green economy” in today’s era of intensified global ecological and economic crises.

References:

Ahuja, D., & Pandit, D. (2020). Public Expenditure and Economic Growth: Evidence from the

Developing Countries, Vision: The Journal of Business Perspective.

Daniel Fiorino, A (2018) Good Life on a Finite Earth: The Political Economy of Green Growth

(Oxford University Press, New York City, New York, ) 272 pp.// https://doi.org/10.1111/puar.13120

Farmon (2022) O’zbekiston Respublikasi Prezidentining “2022 —

2026-

yillarga mo‘ljallangan

Yangi O‘zbekistonning Taraqqiyot strategiyasi to‘g‘risida”gi farmoni//https://lex.uz/uz/docs/

-

5841063

Fundamental-economic.uz. (2023). Fundamental iqtisod. [online] Available at:

https://uz.fundamental-economic.uz/

Gryaznova, A.G., & Nikiforova, N.A. (2001). Finance and Credit. Moscow: Finance and Statistics

Publishing.

International Monetary Fund (1995). Unproductive Public Expenditures: A Pragmatic Approach

to Policy Analysis.

Keynes, J.M. (1936). The General Theory of Employment, Interest and Money.

Lerner, A.P. (1943). Functional Finance and the Federal Debt.
Lucas, R.E. (1988). On the Mechanics of Economic Development.

Onifade, S.T., et al. (2020). An empirical retrospect of the impacts of government expenditures

on economic growth: new evidence from the Nigerian economy, Journal of Economic Structures.

Rosen, H. S., & Gayer, T. (2014). Public Finance (10th ed.). New York: McGraw-Hill Education.

Safarov I. (n.d.) Byudjet xarajatlarining tasniflanishi va samaradorligining nazariy

masalalari.//

Бюджет харажатларининг таснифланиши ва самарадорлигининг назарий

масалалари |

Iqtisodiyot va ta

ʼ

lim (tsue.uz)

The official website of the Ministry of Economy and Finance of the Republic of Uzbekistan//

www.imv.uz

Wagner, A. (1890). Finanzwissenschaft.

Weisbrod, B.A. (1964). External Benefits of Public Education.

Библиографические ссылки

Ahuja, D., & Pandit, D. (2020). Public Expenditure and Economic Growth: Evidence from the Developing Countries, Vision: The Journal of Business Perspective.

Daniel Fiorino, A (2018) Good Life on a Finite Earth: The Political Economy of Green Growth (Oxford University Press, New York City, New York, ) 272 pp.// https://doi.org/10.1111/puar.13120

Farmon (2022) O’zbekiston Respublikasi Prezidentining “2022 — 2026-yillarga mo‘ljallangan Yangi O‘zbekistonning Taraqqiyot strategiyasi to‘g‘risida”gi farmoni//https://lex.uz/uz/docs/-5841063

Fundamental-economic.uz. (2023). Fundamental iqtisod. [online] Available at: https://uz.fundamental-economic.uz/

Gryaznova, A.G., & Nikiforova, N.A. (2001). Finance and Credit. Moscow: Finance and Statistics Publishing.

International Monetary Fund (1995). Unproductive Public Expenditures: A Pragmatic Approach to Policy Analysis.

Keynes, J.M. (1936). The General Theory of Employment, Interest and Money.

Lerner, A.P. (1943). Functional Finance and the Federal Debt.

Lucas, R.E. (1988). On the Mechanics of Economic Development.

Onifade, S.T., et al. (2020). An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy, Journal of Economic Structures.

Rosen, H. S., & Gayer, T. (2014). Public Finance (10th ed.). New York: McGraw-Hill Education.

Safarov I. (n.d.) Byudjet xarajatlarining tasniflanishi va samaradorligining nazariy masalalari.// Бюджет харажатларининг таснифланиши ва самарадорлигининг назарий масалалари | Iqtisodiyot va taʼlim (tsue.uz)

The official website of the Ministry of Economy and Finance of the Republic of Uzbekistan// www.imv.uz

Wagner, A. (1890). Finanzwissenschaft.

Weisbrod, B.A. (1964). External Benefits of Public Education.