Tashkent, Uzbekistan (UzDaily.com) —  According to forecasts by the Ministry of Economy and Finance, Uzbekistan’s state debt could increase to US$45 billion by 2025, reports "Gazeta.uz."

In 2024, it is expected that the state debt will reach US$39.7 billion, representing 35.5% of the country’s Gross Domestic Product (GDP).

In the following year, this figure is expected to grow by 13.3% to US$45 billion, or 36.4% of GDP. By 2027, the state debt could reach US$55.9 billion, though the debt-to-GDP ratio is expected to rise only slightly to 36.7%.

According to the draft state budget for the upcoming year, Uzbekistan plans to increase borrowing through a rise in state debt.

This year, the limit for external borrowing with state guarantees is US$5 billion, while next year, it will increase to US$5.5 billion. Of this amount, US$3 billion (up from the current US$2.5 billion) will be allocated to support the state budget, and US$2.5 billion will fund investment projects.

To diversify the state debt portfolio and mitigate currency risks, a cap on the net volume of government securities issued on behalf of Uzbekistan will be set at 30 trillion soums in 2025 (up from 25 trillion soums in 2024).

Additionally, to reduce risks for the state budget, a cap of US$6.5 billion has been set for new state-private partnership projects that involve state obligations (such as purchases or payments).

Expenditures on state programs financed by external debt could reach 18.8 trillion soums (compared to 11.8 trillion soums in 2024).

The share of funds allocated for debt repayment in the consolidated budget (including the state budget, state-targeted funds, off-budget funds of budget organizations, and the Reconstruction and Development Fund) is expected to rise from 7.5% to 9.6%.

It is planned that 46.08 trillion soums will be allocated for state debt repayment from the budget (approximately US$3.48 billion at the average exchange rate for the next year), of which 21.1 trillion soums will go towards interest payments. In comparison, in 2024, 32.27 trillion soums (US$2.55 billion) are expected to be allocated for debt repayment, including 16.4 trillion soums for interest payments.