ACADEMIC RESEARCH IN MODERN SCIENCE
International scientific-online conference
150
FINANCING OF CONSTRUCTION AND RECONSTRUCTION WORKS
ON PUBLIC HIGHWAYS WITHIN THE FRAMEWORK OF THE
INVESTMENT PROGRAM
Fayzulla Gaffarovich Pardaev
Senior Lecturer,
Tashkent State University of Economics
https://doi.org/10.5281/zenodo.15234853
Abstract.
Financing of public highways is carried out within the
framework of the state investment program. In this regard, international
experiences have been studied, and scientific and practical proposals have been
developed to address existing problems and shortcomings in our country.
Key words:
Public use, highways, investment program, financing,
construction, reconstruction.
Introduction
It is impossible to increase a country's economic potential without
investment. As a result of investment, industrial enterprises develop actively,
and gross domestic product grows. The country's activity in foreign markets
increases. In major economic processes, investments play an important role
not only at the national level, but also at the level of sectors and individual
enterprises. Practice shows that investment risk is closely linked to a country's
production potential. The scale and effectiveness of the investment process
predetermine the resolution of many social issues, including improving living
standards, reducing unemployment, and enhancing working conditions.
Literature review
In the Republic of Uzbekistan, investments in the road sector include the
construction of new automobile roads, their reconstruction, technical re-
equipment, and maintenance of existing roads.
Among national economists, F. Dodiev defines the concept of investment
as follows:“Investment refers to the total of all types of tangible, financial, and
intellectual wealth that investors allocate to entrepreneurial activity objects
with the aim of gaining future profit (income) or achieving social benefit.”
Another economist, N. Haydarov, states: “Regardless of the form of
ownership, investment is the allocation of financial, material, and intellectual
resources available to individuals, legal entities, or the state to any
entrepreneurial object for the purpose of achieving economic and social
outcomes within the legal framework.”
S.V. Shkodinsky interprets investment as: “A part of socially produced
goods created and preserved in monetary, material, and intangible forms,
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aimed at increasing the quantity and quality of production factors used in
various fields of entrepreneurship.”
Investments can be categorized as follows:
1.
State – formed through the state budget and public financial
sources;
2.
Foreign – made by foreign investors, including other
countries, international banks, companies, and entrepreneurs;
3.
Private – formed through private and corporate enterprises,
organizations, and citizens' own and borrowed funds.
Currently, construction and reconstruction of public highways are being
carried out in our Republic based on the state investment program funded by
the state budget.
It is important to note that road construction includes the technological,
infrastructural, and managerial processes required to build a road.
Meanwhile, reconstruction refers to a set of activities that alter road
parameters and segments, which may result in a change of road category
and/or class or a modification of the road's right-of-way boundaries.
Information on the Dynamics of Road Lengths Constructed and
Reconstructed, and Allocated Funds within the Framework of the
Investment Program from the State Budget for the Years 2020–2024
1
Year
s
Length of
reconstruc
ted
road
(km)
Growth rate %
Amoun
t spent
(billion
soums)
Growth rate %
Basic
Compare
d
to
2020
Compared
to
previous
years
Basic
Compare
d
to
2020
Compare
d
to
previous
years
А
1
2
3
4
5
6
2020 105,9
100
100
924,8
100
100
2021 125,5
118,5
118,5
1686,0
182,3
182,3
2022 130,1
122,8
103,7
1682,1
181,9
99,8
2023 142,1
134,2
109,2
1138,1
123,0
67,7
2024 133,0
125,6
93,6
1427,1
154,3
125,4
Source: Independently prepared by the researcher based on the
information of the Highways Committee.
The shortest length of roads reconstructed under the investment program
from the state budget was recorded in 2020 at 105.9 km, while the longest was
1
Data from the Highways Committee.
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in 2023 at 142.1 km. This accounted for 0.25% of the total public road network
in 2020 and 0.33% in 2023.
Over the period under review, this indicator averaged 1.5% relative to the
total road length. If we consider that the total length of roads reconstructed from
state budget funds within the investment program between 2020 and 2024
amounted to 636.6 km, the average annual length of reconstructed roads was
127.32 km.
In addition, the dynamics of reconstructed road lengths over the years were
studied using the
base method
. In 2020, 105.9 km of roads were reconstructed
under the investment program. This figure increased to 133 km in 2024, which
means an increase of 27.1 km compared to the base year, with a growth rate of
125.6%.
Using the
chain method
, 142.1 km of roads were reconstructed in 2023,
and 133 km in 2024. A comparison between these two years shows that in 2024,
9.1 km fewer roads were reconstructed, indicating a decrease of 6.4% in the
dynamics.
The dynamics of funds allocated for public highways under the investment
program from 2020 to 2024 were also examined. The highest amount of funding
compared to the base year was allocated in 2021, totaling 1,686.0 billion UZS—
761.2 billion UZS more than in 2020, or a growth rate of 182.3%.
Based on the
chain method
, the year with the lowest amount allocated was
2023, totaling 1,138.1 billion UZS. In comparison, 1,682.1 billion UZS were
allocated in 2022, meaning the funding in 2023 was 544.0 billion UZS less, or
67.7% of the previous year's figure.
The dynamics of state budget allocations under the investment program
show a
base growth rate
of 154.3% in 2024, and a
chain growth rate
of
125.4% compared to 2023.
Conclusion
Forming a road network that meets the needs of the population ensures the
free movement of goods and services, and allows people, goods, works, and
services to be delivered safely and efficiently to the required destinations in a
timely and high-quality manner.
Investments in automobile roads are closely tied to income-generating
activities. Analyzing investments dynamically allows for the integration of
resources, investment volumes, and investment profitability. Therefore, it is
recommended to direct any investment that yields economic returns into road
infrastructure development.
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List of References:
1.
Constitution of the Republic of Uzbekistan, new edition. Republic of
Uzbekistan, May 1, 2023. Law No. ZRU-837.
2.
"On the Approval of the Budget Code of the Republic of Uzbekistan." Law
of the Republic of Uzbekistan dated December 26, 2013. Law No. ZRU-360.
3.
Law of the Republic of Uzbekistan "On Automobile Roads," dated October
2, 2007. Law No. ZRU-117.
4.
Sirojiddinova Z. The Budget System of the Republic of Uzbekistan.
Textbook. – Tashkent: infoCOM.UZ, 2010.
5.
Vahabov A. Economic Funds in the Market Economy System. – Tashkent:
Sharq, 2003, No. 7, p. 117.
6.
Dodiev F. Financial Stimulation of Investment Activity. Abstract of
dissertation for the degree of Candidate of Economic Sciences. – Tashkent, 1998,
p. 10.
7.
Haydarov N. Improving Financial and Tax Relations in the Investment
Activities of Enterprises under Economic Liberalization. Doctoral dissertation in
Economic Sciences. – Tashkent, 2003, p. 29.
8.
Shkodinsky S.V. Investments as a Factor in Strengthening National Defense
Capabilities. Dissertation for the degree of Candidate of Economic Sciences. –
Moscow, 2001.
9.
Data from the Committee for Roads
