Uzbekistan Adopts Deficit Budget in Rare Admission of Trouble
Uzbekistan’s upper house of parliament, the Senate, on December 13 adopted the 2017 budget with a deficit equivalent to 1 percent of gross domestic product — a rare if marginal acknowledgement of the country’s economic struggles.
That deficit amounts to 2.4 trillion sum, or around $750 million.
The budget was initially presented to lower house of parliament by deputy prime minister Rustam Azimov, who also fulfils the position of finance minister.
Last year’s budget was also adopted with 1 percent to GDP deficit, then around $650 million.
The scale of the reported deficit is eminently manageable by the standards of Western economies, but it is the gesture of transparency that it noteworthy in this instance. The government tentative efforts at privatisation programs and drumming up foreign investment are sorely constrained by common perceptions that Uzbekistan’s is mired in corruption and hampered by opaque bureaucratic practices.
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