STATE BUDGET AND WAYS TO IMPROVE IT

Аннотация

This article analyzes the formation of the state budget and ways to improve it. The relevance of the topic, the methodology for solving the problem are discussed and practical recommendations are offered. The scientific and practical contribution of the author is emphasized. Keywords:state budget, budget system, financial management, budget reform, Uzbekistan, budget deficit, budget efficiency. The state budget is the main instrument of the state's financial policy, reflecting its income and expenditure. Effective budget management contributes to sustainable economic development and social stability. In the context of the dynamically developing economy of Uzbekistan,theissueof improvingthebudget system is becoming especially relevant. Table 1. The main components ofthestate budget. Incomepart Expenditurepart Budget deficit Budget surplus Taxes and fees are the Education and health If expenditure exceeds This is a situation main part of income care - expenditure on revenue, a budget where income received from the development of deficit arises, which exceeds expenses, individuals and legal social programs and must be covered by which can lead to the entities. support of national borrowing or cutting accumulation of services. expenditure. reserves or the redistribution of funds for needs that were not taken into account inadvance. Income from state Defense and security property - income are the means to from privatization and maintain the country's leaseof stateproperty. defensecapability. Credits and loans are Infrastructure - sources of borrowed development and funds for financing maintenance of road, page188 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue02,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai thebudget deficit. transport, energy and utilities infrastructure. Grants and subsidies Public administration are financial support - expenses for the from international maintenance of organizations, other government bodies countries or within the and theirwork. country. Debt obligations - payment of interest and principal on loans. Therole ofthestatebudget: Economic regulation : Thebudget is used toredistribute financial resources to achieve social and economicgoals. Stimulating economic activity: The budget can be a tool to stimulate economic growth, for examplethrough publicinvestment in infrastructureor tax cuts. Social support : The budget also supports social programs aimed at improving the quality of life ofcitizens. The process of formation and execution of thestatebudget: The budget is formed by the government taking into account the projected revenues and needs of the country, agreed upon by parliament or other legislative body, and then implemented through various government agencies. The budget also undergoes a process of control through audit and verification of the execution of itsarticles at different levels. In recent years, the state budget of Uzbekistan has undergone several changes in connection with the transition to a market economy and the implementation of a number of reforms. An important area is strengthening fiscal discipline, increasing tax revenues, combating theshadoweconomy and increasing thetransparency of budget spending. The main problems ofthestate budget ofUzbekistan: Dependence on oil and gas revenues : Although the country strives to diversify its economy, mostofits revenue stillcomes from oil and gas. Lack of transparency : In some cases, limited access to information on budget expenditures results ininsufficient publicreporting. Budget deficit : Despite efforts to reduce it, sometimes the budget deficit remains significant, requiring external and internal borrowing. REVIEWLITERATURES Various aspects of the formation and execution of the state budget are widely discussed in economic literature. A number of studies are devoted to the analysis of the budget policy of Uzbekistan in the post-Soviet period, including reforms of the tax system and inter- budgetary relations. However, the need for further improvement of the budget process requires amore in-depth study ofmodern approaches and methodsof budget management. Someopinions ofscientists about thestatebudget and its management: 1. L.L. Ivanova (economist): "The state budget is not only an instrument for redistributing income, but also a powerful regulator of economic activity. Its structure must be flexible page189 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue02,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai and adaptive, taking into account changing external and internal economic conditions. Effective budget management requires transparency, control and citizen participation in theprocesses ofits formation." 2. S. A. Makarov (financier): "Problems with the state budget are related to the deficit and the government'