Government Agencies in Uzbekistan Spend Billions on Mobile Devices Despite Budget Shortfall
Despite the Prime Minister’s directive to halt asset purchases, it has been revealed that Uzbekistan’s state organizations spent over 6.6 billion UZS last year on acquiring more than 3,400 smartphones, including the latest and most expensive iPhone 15 Pro Max models. This extravagant spending took place in a year when the state budget deficit significantly increased, with external debts covering a large portion of the shortfall.
According to an analytical report by the Treasury Service Committee under the Ministry of Economy and Finance, state organizations executed 289 transactions totaling 6 billion 637.8 million UZS for the purchase of costly smartphones in 2023. These expenditures went against the Prime Minister’s directive issued on January 5, 2023, which called for a temporary suspension of main asset purchases until the approval of a limited organizational structure.
The Committee found that state organizations ordered an average of 12 smartphones per purchase last year. Expenditures in various regions of Uzbekistan included spending on mobile devices in the Republic of Karakalpakstan, Jizzakh region, and Fergana region, among others.
The audit results were presented to Deputy Prime Minister – Minister of Economy and Finance Jamshid Kuchkarov, with a recommendation for the Financial Control Inspection to investigate the situation. Previous reports highlighted purchases of expensive smartphones by the prosecutor’s office in the Samarkand region and the Tashkent regional branch of the Republic’s Center for Spirituality and Enlightenment.
Last year, the Republic of Uzbekistan exceeded its permitted budget deficit and surpassed the planned amount of external debt. To address financial challenges, the Uzbek government issued sovereign bonds worth $1.5 billion, while the volume of foreign credits obtained under state guarantee increased significantly in the first quarter of this year.
The excessive spending on smartphones by state organizations raises concerns about financial discipline and the use of public funds in Uzbekistan. The investigation into this matter will shed light on the decision-making processes within these organizations and ensure accountability for taxpayer money.
