Analysis of Public Debt Policy and Its Effectiveness in Uzbekistan

Abstract

The authors study public debt policy based on the reports for 2011–2022 and examine the factors affecting the public internal and external debt growth rate using several methods. The research results demonstrate that internal and external debts have changed significantly under the influence of socioeconomic factors. The authors provide scientific recommendations and conclude that public debt is one of the vital instruments of the macroeconomic regulation system through the budget-tax policy. The main features of the debt financing system of the budget deficit are considered. It embodies the redistribution system of national income expressed through its activity as a “state debtor agent” to attract funds for financial support for the requirements of specific segments. Debt financing of the country's primary budget deficit affects the consumption, savings, and investment environment and usually depends on various aspects of the economy. During an economic downturn, the government revives aggregate demand by raising gathered funds (via the sale of securities) and funding governmental operations, which has a stimulative impact. To stabilize the national economy in terms of the country's foreign debts, global funds will have the opportunity to “infect” financial resources in exchange for funds. In a period of stable economic development, the activation of the state as a borrower in the financial market will have the character of crowding out private investments. This ultimately shows that public debt has the characteristic of limiting the scientific views of economists regarding state debts.

Citation

Tashbaev, B., Usmonov, B. and Omanov, S. (2024), "Analysis of Public Debt Policy and Its Effectiveness in Uzbekistan", Eshov, M.P., Abdurakhmanova, G.K., Burkhanov, A.U., Abdusalomova, N.B. and Ergasheva, S.T. (Ed.) Development of International Entrepreneurship Based on Corporate Accounting and Reporting According to IFRS (Advanced Series in Management, Vol. 33B), Emerald Publishing Limited, Leeds, pp. 191-195. https://doi.org/10.1108/S1877-63612024000033B024