The Institute for Reducing the Shadow Economy, Improving Tax and Customs Administration, and Fiscal Analysis under the Ministry of Economy and Finance has proposed a fundamental overhaul of how public transportation is funded. These recommendations were officially presented on July 30 during a policy session titled "Fiscal Dialogue."
According to the institute’s presentation, the state budget currently expends 1.9 trillion UZS annually on gross contracts for public transit operators. A disproportionate share of this funding—amounting to 1.3 trillion UZS—is directed exclusively toward supporting the public transportation infrastructure of the Tashkent city. Across the entire system, government subsidies now underwrite 65.1% of all public transit operating expenses.
The total volume of these subsidies has experienced a steep upward trajectory, climbing from 1 trillion UZS in 2024 to 1.2 trillion UZS in 2025, and reaching 1.385 trillion UZS in 2026. This represents a substantial 38.5% increase in state spending over a brief two-year period.
The institute emphasized that public transit capabilities and service availability vary drastically between the capital city and the country's rural provinces. Analysts warned that while the volume of state subsidies continues to aggressively escalate, the tangible outcomes of this financial backing remain deeply opaque and difficult to measure.
Furthermore, the presentation emphasized that a recent surge in passenger traffic has failed to generate a proportional increase in revenue or alleviate the financial strain on the state budget.
Proposed Reform
To address these inefficiencies, the institute recommends "optimizing" low-traffic routes, gradually adjusting passenger fares to reflect actual economic costs, and expanding transit coverage across rural provinces.
Under the new model, disbursements to private and state transport operators through gross contracts would be strictly linked to key performance indicators (KPIs) evaluating service quality. Concurrently, the proposal advises maintaining targeted, subsidized transit fares for vulnerable citizens and individuals holding official travel privileges.
According to the institute's projections, transitioning to this model of targeted assistance would free up a significant portion of the massive subsidies currently absorbed by Tashkent’s public transit network, allowing those funds to be redirected toward developing critical transport infrastructure in the provinces.
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