[{"bbox": [83, 121, 1145, 175], "category": "Text", "text": "mid-March 2022 to anchor expectations and stem exchange rate pressures. The current policy stance appears appropriate to contain price pressures and gradually bring inflation down to the CBU's medium-term objective."}, {"bbox": [83, 185, 1145, 320], "category": "Text", "text": "**Fiscal Policy:** The fiscal deficit widened to 4% of GDP in 2019 and 4.5% in 2020, due to increased investment and the impact of the pandemic, respectively. The 2021 budget maintained an accommodative fiscal stance targeting an overall fiscal deficit of around 5.4% of GDP (3.5% consolidated), to help with economic recovery and support households and businesses. It allocates significant resources to healthcare and social assistance while also catching up with delayed investment from 2020 and wage increases."}, {"bbox": [83, 331, 1145, 465], "category": "Text", "text": "The World Bank is working with the IMF in supporting Uzbekistan's reform programme. Despite the pandemic the IMF is providing extensive technical assistance to the government and has increased staff monitoring. Technical assistance is being provided in the areas of debt and public financial management, stress testing, tax policy and administration, monetary and foreign exchange operations, and statistics (including external sector, government financial statistics, monetary and financial surveys, and national accounts)."}, {"bbox": [83, 476, 1145, 527], "category": "Text", "text": "In conclusion, the authorities are pursuing a stability-oriented macroeconomic policy and the eligibility criterion is met."}, {"bbox": [124, 590, 500, 618], "category": "Section-header", "text": "### 2.3.3 Public Financial Management"}, {"bbox": [83, 627, 1017, 654], "category": "Text", "text": "IMF, WB, ADB, EU and UNDP are the main partners of the Uzbek fiscal authorities in the PFM area."}, {"bbox": [83, 666, 1145, 774], "category": "Text", "text": "IMF has been instrumental in the Uzbek PFM reform strategy development and it was directly involved in drafting the strategy. IMF substantially helped the authorities in gaining the improvements attained so far and the Fund will be an even more essential partner in the immediate future for the MoF in the implementation of the approved PFM 2020-2024 Reform Strategy."}, {"bbox": [83, 784, 1145, 866], "category": "Text", "text": "WB supports the MoF on programme/performance based budgeting. As part of the on-going fiscal reforms, the MoF within the Institutional Capacity Building loan instrument of the World Bank, is developing its programme/performance based budgeting and has hired the international consultant Linpico to support this process."}, {"bbox": [83, 876, 1145, 957], "category": "Text", "text": "ADB are working on multiple areas in PFM with the MoF under the ongoing Economic Management Improvement Program Technical Assistance Facility. Medium Term Budget Framework (MTBF) is part of that TA action. ADB is also cooperating on debt management and internal audit."}, {"bbox": [83, 968, 1108, 996], "category": "Text", "text": "UNDP has been assisting the Uzbek fiscal authorities in the development and publication of \"Citizens' Budget\"."}, {"bbox": [83, 1007, 1135, 1248], "category": "Text", "text": "In 2018 a Public Expenditure and Financial Accountability (PEFA) assessment was carried out highlighting the strength of Uzbekistan's upstream PFM system in contrast to relatively weaker downstream systems. 15 out of 31 indicators were rated A or B, while 16 - mainly downstream indicators - were rated C or D. The assessment showed that public finances have become more transparent as a result of increased budget and debt transparency. Some progress has also been made in other areas, such as procurement, audit, financial reporting, subnational transfers, and the production of adequate performance information for service delivery. However, there are also some weaknesses in the management of public assets and liabilities which in turn create fiscal risks. The PEFA also highlighted the weak areas related to policy-based fiscal strategy and budgeting. These are macroeconomic and fiscal forecasting, fiscal strategy, medium term fiscal management, and budget preparation."}, {"bbox": [83, 1259, 1145, 1313], "category": "Text", "text": "IFIs are active in PFM support for the MoF collectively believe that 2022 and 2023 are going to be crucial for the fiscal authorities of Uzbekistan in implementing their ambitious 2020 - 2024 PFM Reform Strategy."}, {"bbox": [83, 1324, 1135, 1538], "category": "Text", "text": "The government has taken credible steps to develop and implement an ambitious PFM reform strategy (2019-2024), drafted following the Presidential Resolution (2018) and fully embedded in the Economic Roadmap of the country (approved by the Presidential Decree No. UP-5614). The strategy aims to sustain macroeconomic stability by strengthening macroeconomic institutions, fiscal policy and tax reforms. The strategy covers a range of measures aimed at strengthening budget preparation and execution, public sector accounting, the treasury system as well as improving the legislative base for PFM reforms. The PFM Strategy is comprised of a PFM Strategic Action Plan that provides a sound basis for a comprehensive PFM reform and addresses the key weaknesses of the present PFM system in the country."}, {"bbox": [83, 1549, 1135, 1657], "category": "Text", "text": "Debt management systems have also improved, and the government is in the final stages of upgrading and adopting a new debt management system, debt legislation, and a medium-term debt strategy. Progress to strengthen the Chamber of Accounts (CoA), the country's Supreme Audit Institution, is still in the initial phases of its development. A new law to strengthen the CoA was approved by Parliament in July 2019, which clarifies and expands the"}, {"bbox": [1133, 1659, 1156, 1681], "category": "Page-footer", "text": "11"}]