According to the Ministry of Economy and Finance, subsidies from the state budget in Uzbekistan have increased five times compared to 2021. In 2023, subsidies amounted to 29.25 trillion som (approximately 2.5 billion dollars). A significant portion of these funds, 17.99 trillion som, was allocated to compensate for the price difference in purchasing and selling natural gas domestically.
In joint projects with foreign companies, Uzbekistan purchased gas intended for export at export prices for the domestic market. This led to debts of 1 billion dollars to Korean companies and 600 million dollars to Lukoil in previous years. In 2024, subsidies are planned to decrease to 9.5 trillion som by raising tariffs and allocating funds to cover differences in electricity prices.
Additionally, subsidies were allocated for geological exploration, covering damages in thermal energy production, and supporting public transportation. The sharp increase in compensation for heating and public transport was attributed to price hikes in gas and electricity. Subsidies for building kindergartens through public-private partnerships and assisting with mortgage payments were also part of the budget allocation.
Looking ahead to 2024, substantial funds are earmarked for subsidies, energy, and geological exploration. Notably, companies engaged in mineral extraction in Uzbekistan will be exempt from rent tax if they commence operations between January 1, 2024, and December 31, 2025. Despite opposition from Deputy Doniyor Ganiev, the provision was approved.
