THE ROLE OF TAX REVENUES IN ENSURING THE SUSTAINABILITY OF THE STATE BUDGET

Abstract

Tax revenues play a central role in ensuring the sustainability of, and enabling the effective functioning of, the state budget. In the context of the Republic of Uzbekistan, taxes are the main source of public revenue and are a vital tool for fiscal policy implementation and socio-economic development support. This article examines the role of tax revenues in maintaining the sustainability of Uzbekistan’s state budget, paying particular attention to their impact on budget stability, public expenditure and economic growth.

It analyses the structure of tax revenues in Uzbekistan, including income tax, VAT, property tax and other mandatory payments that contribute to the state budget. Particular emphasis is placed on the importance of stable and predictable tax inflows for effective budget planning and reducing fiscal deficits. Additionally, the article considers the influence of tax policy reforms and improvements in tax administration on revenue collection and budgetary sustainability.

Furthermore, the research emphasises the social and economic importance of tax revenues in funding vital public services, including education, healthcare, infrastructure development and social protection programmes. In the case of Uzbekistan, the evaluation of ongoing reforms aimed at increasing transparency, digitalisation and fairness in the tax system is considered crucial for strengthening public trust and improving voluntary tax compliance.

 The findings suggest that a well-balanced, transparent and efficient tax system is essential for ensuring the long-term sustainability of Uzbekistan’s state budget. The article concludes that the continued modernisation of tax policy and administration is necessary to enhance fiscal stability, support inclusive economic growth and ensure the effective allocation of public resources within the national economy.