Presidential Decree Aims to Improve Budget Efficiency through Cuts to Service Vehicles and Office Equipment
A new decree signed by the president on December 25 mandates that government agencies must operate in 2025 based on cost-efficiency principles outlined in the state budget for the year. The decree requires budget managers, the Cabinet of Ministers of Karakalpakstan, and regional governments to take measures to reduce expenses and improve efficiency.
Any additional spending from the state budget or state-targeted funds that could increase the consolidated budget deficit will only be allowed if there is an alternative source of income or if savings can be made by cutting other expenses.
Certain proposals are prohibited by the end of the year, such as increasing the salaries of management staff in executive bodies, purchasing service vehicles (except for special vehicles) and expensive furniture and equipment from certain budgets, and making purchases from extra-budgetary funds without the approval of the Cabinet of Ministers.
Budget organizations are instructed to reduce the purchase of furniture, office equipment, and resources by 10% in 2025 compared to 2024, with exceptions for kindergartens, schools, and healthcare institutions.
Local government bodies are strictly prohibited from allowing funds shortages for essential payments, maintaining unnecessary staff positions, and implementing activities without specified funding sources.
Additionally, starting from January 1, 2025, maintenance expenses for healthcare institutions previously funded by district and city budgets will be transferred to the state budget of Karakalpakstan, regional budgets, and the Tashkent city budget. The aim of these measures is to increase efficiency and reduce unnecessary expenses in the operation of government agencies in the year 2025.
