Page 18 - Uzbek Outlook 2024

As part of the reform, the excise tax on cigarettes and other tobacco products will also be hiked by 12% and the FinMin estimates the price of a pack of cigarettes will increase by UZS 601 as a result. Starting from July 1, the tax on domestically produced alcohol will be hiked by 5% as well. In terms of fuel, no changes will be made regarding gasoline that fits environmental safety standards (91-octane and higher). Conversely, the excise tax on 80-octane gasoline will be hiked by 12%, which implies the price of one litre will rise by UZS88. Methane prices will also increase by UZS84 per litre as of April 1. Another novelty related to Uzbekistan's green agenda concerns owners of heavy vehicles (10 tonnes and more). They will have to pay UZS1.65mn per year and these revenues will be used to finance road construction.
Budget expenditure.
The consolidated budget sets expenditure at UZS427.5 trillion (32.8% of GDP), up from UZS380.9 trillion in 2023. Republican budget expenditure is projected at UZS279.6 trillion, which is 9.5% higher than in 2023's total. As outlined, social welfare is the main expenditure item in the budget. Apart from the increased spending on wages and pensions, hikes are also planned in education and healthcare. Spending on the former is projected at UZS69.1 trillion (from UZS60.6 trillion), with the increase of funding spread across preschool education, school education, and higher education. This is in line with the president's reform agenda and is also formalised in the official development strategy. Healthcare expenses are in turn forecast at UZS33.4 trillion after UZS28.4 trillion in 2023. President Mirziyoyev has ordered expansion of the guaranteed medical insurance as well as increased financing for treatment of certain infectious diseases and disability conditions. It should also be noted that both segments will benefit from the public sector salary hikes, which is reflected in the data.
Meanwhile, spending on the economy will increase by almost UZS600bn (to UZS24.8 trillion) on the back of more extensive expenditure related to water resource management. This is not surprising as Uzbekistan faces long-term
18 Uzbekistan Outlook 2021 www.intellinews.com