世界银行-乌兹别克斯坦公共支出审查2022年12月：人力资本和水基础设施更物有所值（英）-2022

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EDUCATION

SOCIALPROTECTION

UZBEKISTANPUBLICEXPENDITUREREVIEW

BetterValueforMoneyinHumanCapitalandWaterInfrastructure

HEALTHCARE

IRRIGATION

STATEBUDGET

WATERSUPPLYANDSANITATION

December2022

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Attribution

Citetheworkasfollows:WorldBank.2022.“UzbekistanPublicExpenditureReview.BetterValueforMoneyinHumanCapitalandWaterInfrastructure,”WorldBank,Washington,D.C.

Allqueriesonrightsandlicenses,includingsubsidiaryrights,shouldbeaddressedtotheOfficeofthePublisher,TheWorldBankGroup,1818HStreetNW,Washington,DC20433,USA;fax:202-522-2422;e-mail:pubrights@.

December2022

UZBEKISTANPUBLICEXPENDITUREREVIEW

BetterValueforMoneyinHumanCapitalandWaterInfrastructure

REPUBLICOFUZBEKISTAN

GovernmentFiscalYear:January–December

CurrencyEquivalents

(ExchangerateasofDecember30,2022)

CurrencyUnit=UzbekistanSom

USD1.00=UZS11,225.46

WeightsandMeasures

MetricSystem

VicePresidentCountryDirectorCountryManagerPracticeManagerTaskTeamLeader

AnnaBjerde

TatianaProskuryakova

MarcoMantovanelli

SandeepMahajan

EskenderTrushin

TableofContents

Acknowledgments 1

AbbreviationsandAcronyms 2

ExecutiveSummary 3

Chapter1.AnOverview 5

1.Introductionandhigh-levelfindingsofthereport 5

2.Creatingthefiscalspacetoimplementeffectivesector-levelchanges 9

3.Summaryofsector-levelfindings 14

Chapter2.Health 25

Summary 25

ContextandRecentDevelopments 25

KeyChallenges 39

PolicyOptions 62

Chapter3.Education 64

Summary 64

Overview 65

Structureoftheeducationsector 71

Keyfindingsandchallenges 75

PolicyOptions 90

Chapter4.SocialProtection 92

Summary 92

ContextandRecentDevelopments 92

KeyChallenges 97

PolicyOptions 116

Chapter5.IrrigationWaterManagement 123

Summary 123

ContextandRecentDevelopments 124

KeyChallenges 126

PolicyOptions 135

Spotlight1.DrinkingWaterSupplyandSanitation 143

Summary 143

Context 143

RecentDevelopments 144

KeyChallenges 146

PolicyOptions 147

Annex1:FiscalReformssincetheLastUzbekistanPER(2019) 150

Annex2.RecentDevelopments:TheImpactofCOVID-19onPublicFinances 155

1

Acknowledgments

ThisUzbekistansecondPublicExpenditureReviewwaspreparedbyateamledbyEskenderTrushin(TaskTeamLeader).TheoverviewchapteronfiscaldevelopmentsandpolicieswaspreparedbyEskenderTrushinandVinayakNagaraj.ThechapteronhealthwaspreparedbyChristelVermeersch.ThechapteroneducationwaspreparedbyJanssenEdelweissNunesTeixeira,HuseinAbdul-Hamid,NodiraMeliboeva,MariaPomesJimenez,SharanyaRameshVasudevan,andKenglinLaiwithinputsandguidancefromHarryAnthonyPatrinos.ThechapteronsocialprotectionwaspreparedbyMarinaNovikovaandLidiiaTkachenkowithsupportandguidancefromMaddalenaHonoratiandOleksiySluchynskyy.ThechapteronirrigationwatermanagementwaspreparedbyAbdulhamidAzad,EskenderTrushin,andShavkatRakhmatullaev.ThespotlightondrinkingwatersupplyandsanitationwaspreparedbyKhairyAl-Jamal.

IqboljonAhadjonovprovidedvaluablesuggestionsandassistancewithhealthdataprocessing.ShoistaZakirovahelpedcoordinatemissionschedules,datarequests,reportformatting,andtranslationwork.SarahNankyaBabiryealsoprovidedvaluableassistance.TheteamalsothanksCatherineLipsforeditingtheEnglishversionofthereport.

ThePERteamwouldliketoexpressitsgratitudetothegovernmentofUzbekistan,inparticularDjamshidKuchkarov,DeputyPrime-MinisterandMinisterofEconomicDevelopmentandPovertyReduction;TimurIshmetov,MinisterofFinance;AkhadbekKhaydarov,DeputyMinisterofFinance;andJamshidAbruev,DeputyMinisterofFinance,fortheiradviceandcollaborationaswellasforprovidingextensivestatisticaldataforthereport.ThanksarealsoduetothemanystaffoftheMinistryofFinance,lineministries,andbudgetorganizationswhoprovidedvaluableinformationforthereportandparticipatedindiscussionsduringthemissions.AnearlierversionofthereportbenefitedfromvaluablecommentsattheDecember2020workshoppresentationsofthisPER’schapterstomanagementandstaffoftheMinistryofFinance,CentralBank,theMinistryofEconomicDevelopmentandPovertyReduction,theMinistryofInvestmentandForeignTrade,theMinistryofPreschoolEducation,theMinistryofPublicEducation,theMinistryofHigherandSecondarySpecializedEducation,theMinistryofHealth,theMinistryofEmploymentandLaborRelations,theUzbekistanPensionFund,theMinistryofWaterResources,andtheMinistryofHousingandCommunalServices.TheteamalsobenefitedfromcommentsanddiscussionswithcolleaguesfromtheFiscalPolicyInstitute,theInstituteofForecastingandMacroeconomicResearch,theCenterofEconomicResearchandReforms,theResearchCenterforEmploymentandLaborProtection,andtheCenterforDevelopmentStrategyofUzbekistan.

Thereporthasalsobenefitedfromtheguidanceanddiscussionswithcolleaguesatdifferentstagesofpreparation,inparticular:IvailoIzvorski,RoumeenIslam,HarryAnthonyPatrinos,DavitBabasyan,SergiyZorya,andIanHawkesworth.Thepeerreviewerswere(inalphabeticalorder)VolkanCetinkaya,AmjadMuhammadKhan,DavidStephenKnight,JavierSanchez-Reaza,andAnitaM.Schwarz.TheteamisgratefultoSandeepMahajan,MarcoMantovanelli,LalitaMoorty,LiliaBurunciuc,andTatianaProskuryakovafortheiradviceandguidance.

2

AbbreviationsandAcronyms

ALMP

ActiveLaborMarketProgram

MoH

MinistryofHealth

CMU

CityMedicalUnion

OOP

Out-of-Pocket

CRD

ChronicRespiratoryDisease

OECD

OrganisationforEconomicCo-operationandDevelopment

CVD

CardiovascularDisease

O&M

OperationsandMaintenance

ECA

EuropeandCentralAsia

OOSC

Out-of-SchoolChildren

ESP

EducationSectorPlan

PHC

PrimaryHealthCare

GDP

GrossDomesticProduct

PISA

ProgrammeforInternationalStudentAssessment

GER

GrossEnrolmentRate

PIRLS

ProgressinInternationalReadingandLiteracyStudy

GP

GeneralPractitioner

RMU

RayonMedicalUnion

GSE

GeneralSecondaryEducation

SSVE

SecondarySpecializedVocationalEducation

HCI

HumanCapitalIndex

SP

SocialProtection

ISF

IrrigationServiceFee

SSN

SocialSecurityNet

LAYS

Learning-AdjustedYearsof

Schooling

SDG

SustainableDevelopmentGoal

LMIS

LaborMarketInformationSystem

TIMSS

TrendsinInternationalMathematicsandScienceStudy

MELR

MinistryofEmploymentandLaborRelations

TVET

TechnicalandVocationalEducationandTraining

MIC

Middle-IncomeCountry

UFRD

UzbekistanFundforReconstructionandDevelopment

MoPE

MinistryofPublicEducation

WDI

WorldDevelopmentIndicators

PPP

Public-PrivatePartnership

WHO

WorldHealthOrganization

PPP

PurchasingPowerParity

WCA

WaterConsumerAssociation

MoF

MinistryofFinance

WMO

WaterManagementOrganization

3

ExecutiveSummary

Uzbekistan’sgoalofachievingfasterandmoreinclusivegrowthneedsbetterhumancapital,physicalinfrastructure,andbudgetaryinstitutions.DevelopingUzbekistan’shumancapitalcontributessignificantlytohigherlaborproductivityandeconomicgrowth;itiscrucialfortheabsorptionofideasandtechnologiesfromaroundtheworldandforinnovation.Physicalinfrastructure,suchasdrinkingwater,sewage,andirrigation,hasapositiveimpactonbetterhealthandeducationalattainment,andincreaseslandproductivity,yield,andincomes.Strongerinstitutionsensurefiscaltransparency,predictability,andefficientperformanceofthepublicsector.Moreefficientpublicexpendituresonhealth,irrigation,preschool,generalandhighereducation,andsocialprotectioncanhelpUzbekistanmobilizeresourcesmoreefficientlytofasterandmoreinclusivegrowth,povertyreduction,andsustainabledevelopmentgoals.

Thissecondpublicexpenditurereview(PER)examinestheeffectivenessofgovernmentspendinginUzbekistan,withaparticularfocusoneducation,health,socialprotection,andwaterresourcesmanagement.FiscalpolicyandtransparencyreformsimplementedrecentlyinUzbekistanhavesupportedstrongeconomicmanagementthroughthereformsandhelpedrealignpublicspendingtonewprioritiesemergingfromUzbekistan’sambitioustransformation.Improvementsinfiscalpolicyandpublicfinancialmanagementhaveplayedanimportantroleincreatingastablemacroeconomicenvironmentforreformstocontinue.Thefocusofpublicfinancereformsoverthepastfewyearshasbeentostrengthenaggregatefiscalcontrol,management,andoversight.Afteryearsoffiscalpolicyreformsin2017–21,shiftingsectoralfocusondeliveringbetterpublicservicestomorecitizensistimelyandmuchneeded.Therearesignificantopportunitiestoimprovethequalityofpublicservicesbymakingpublicspendingatthesectorlevelmoreeffective,financiallysustainable,andefficient.Theemphasisofthegovernment’sreformsisnowshiftingtowardimprovingpublicspendingeffectivenessandservicequalityatthesectorlevel.ThisPERlooksatseveralofthemostcriticalservicesthatcitizenslargelydependonthegovernmentfor:health,education,socialprotection,andwater.

ThekeyfindingofthisPERisthatthereissignificantscopetoimprovevalueformoneyfromsector-levelpublicspending,andforpublicspendingtohaveahigherimpactontheoutcomessoughtfromUzbekistan’seconomicandsocialtransformation.Valueformoneyisseenasanappropriateframeworkformeasuringperformanceinsectoralpublicexpenditures,becausevalueformoneyreflectsnotonlythecostofprovidingaservicebutalsothebenefitsachievedbyprovidingit.Uzbekistan’sreformseffortsinthesesectorsoverthelastseveralyearspaidoffbypositiveoutcomes1.Ineducation,thecoverageofchildrenbypreschooleducationincreasedfrom27percentin2016to70percentin2022andcoverageofpopulationbyhighereducationincreasedfrom9percentin2016to38percentin2022.However,about50percentofhighschoolgraduatesareenteringlabormarketwithouthavinganyprofession.Insocialprotection,thenumberofbeneficiariesincreasedfrom0.6millionpeoplein2019to1.2millionin2020duringtheCOVIDpandemic,andtoover2millionbytheendof2022.Inhealthcare,thegovernmentisfurtherexpandingtheaccessofpeopletothequalifiedmedicalservices,graduallyintroducingofthestatehealthinsurancesystemsince2023andcontinueurgingpeople

1AddressbythePresidentofUzbekistanShavkatMirziyoyevtotheOliyMajlisandthePeopleofUzbekistanonDecember20,2022.

4

toleadahealthylifestyle.Inwatermanagementinfrastructure,thereishugelossofwaterwhilebringingittotheirrigatedfieldsthatcouldbereducedbyincreasinginvestmentinwatersaving,increasingoperationsandmaintenancespending,betterwateraccountingsystemandestablishingeconomicincentivesforfarmerstosafeirrigationwater.Inaddition,pumpingstationscouldbemodernizedbasedontherenewableenergyfacilities.Toincreasevalueformoneyinthesesectors,Uzbekistanshoulddomorespendinginhealth,socialprotection,andwaterinfrastructure;betterwithin-sectorbudgetallocations;betterqualityofservicesineachsector,especiallyineducationatalllevels;astrongerpublicinvestmentframework;morefairnessinpublicservicesprovisionacrossthecountryinprovincesanddistricts;andmoredataandevidenceonthequalityofoutcomesbeingdelivered.

Aclearstrategytorestorefiscalbalanceandrebuildfiscalbufferswillbeimportantforincreasingspendingonhealth,socialprotection,andirrigationandwatersupplyandsanitationinfrastructure.BothshiftinggovernmentprioritiesbeforethepandemicandtheCOVID-19pandemicin2020triggeredtheemergenceofastructuralbudgetdeficit.Theslowprogressofreformstoreducethestate’ssubsidiesoneconomicproductionandreducetaxandcustomsexpendituresisslowingtheprocessoffiscalrebalancingandconsolidation.Structuralreformagendaadvancestotacklingmorecomplexissues,suchasstate-ownedenterprises(SOEs)andfinancialsectorreforms,factormarketliberalization,andambitiousspendingplanstoimprovehumancapital,infrastructure,andwell-being.Theneedforspendingincreasesinhealth,socialprotection,andirrigationinfrastructureandoperationsandmaintenanceislikelytorequireafurther2-3percentofGDPperyearinadditionalspending.Itwillhelpacceleratesector-leveloutcomesbutwillalsofurtherincreasefiscalpressures.Whilesomeoftheseadditionalresourcescouldbefoundthroughbetterprioritizationofoverallpublicspending,reductionofhighandgrowingwagebillasashareoftotalpublicexpenditures,andreductionofhightaxandcustomsexpenditures,thelimiteddiscretionaryfiscalspaceimposedbytheforthcomingmeasurestolimittheoverallbudgetdeficitwillincreasefiscalmanagementchallengesforpolicymakersinthemedium-term.

AcceleratingreformsinthefollowingfourareascouldhelpcreatetheadditionalfiscalspaceneededtostrengthensectorperformancewhilealsoputtingUzbekistan’spublicfinancesonamoresustainablefooting:(1)increasingfiscalspaceforsectorspendingthroughthereform,demonopolizationandprivatizationofSOEs;(2)improvingtheimpactofcapitalspendingthroughbetterpublicinvestmentmanagement;(3)ensuringfiscalsustainabilitythroughmoredisciplineddeficitanddebtmanagement;and(4)creatingroomformoreprivatesector-ledeconomicgrowthbyreducinginefficientspending,forexample,bylesspolicy-basedlendingandtheremovalofunproductivesubsidiesandtaxandcustomspreferencestoSOEs.

5

Chapter1.AnOverview

1.Introductionandhigh-levelfindingsofthereport

ThissecondUzbekistanpublicexpenditurereview(PER)examinestheeffectivenessofgovernmentspending,withaparticularfocusoneducation,health,socialprotection,andwaterresourcesmanagement.ThePERbuildsonanearlierreview,publishedin2019,whichfocusedonthestrategicarchitectureofpublicspending.Itexploreshowpublicspendingtranslatestoservicedeliveryoutcomesinseveralcriticalpublicsectors:health,education,socialprotection,andwaterresourcemanagement.Theanalysisonwateralsocomplementsamorein-depthpublicexpenditurereviewofUzbekistan’sagriculturesectorthatwaspublishedin2021.ThesesectorswereprioritizedbythegovernmentandtheWorldBankbecausetheeffectivenessofpublicspendingintheseareasiscriticaltotheambitiouseconomicandsocialtransformationunderway.Improvingtheperformanceofthesesectors—withinasustainablefiscalenvelope—isamongthegovernment’shighestreformpriorities.TheneedforbetterpublicservicesinthesesectorshasalsobecomemoreimportantfollowingtheCOVID-19pandemic.

Uzbekistan’sgoalofachievingfasterandmoreinclusivegrowthneedsbetterhumancapital,physicalinfrastructure,andbudgetaryinstitutions.Uzbekistanhasambitiousaimsofhalvingpovertyby2026andbecominganupper-middle-incomecountryby2030.Thisrequiresgrowthtobemuchfasterandmoreinclusivethanithasbeensincethecountry’sindependence.EngineersandskilledworkersandserviceprovidersinUzbekistanarejustasscarceasuninterruptedelectricity,cleandrinkingwater,andaccesstocentralizedsewageinruralandurbanareas,whilethebudgetingprocessremainsinefficientanddisconnectedfromdesiredresultsintheseandotherareas.Moreandbetter-qualitypreschool,generalsecondary,andhigherandsecondaryspecializededucation,andexpandedaccesstobasichealthcareforarapidlygrowingpopulationarenecessaryingredientsforaworkforcethatcandriveeconomicgrowth.Improvementsinirrigation,drinkingwaterandsanitation,andotherphysicalinfrastructurewillsimilarlyenablefastergrowthandjobcreation.

MoreeffectivepublicinvestmentsarealsocriticaltoensuringtheresilienceofUzbekistan’seconomytoclimatechangerisks—especiallywatershortages.Uzbekistan’sclimatevulnerabilitiesareparticularlyacuteinagricultureandwaterresourcemanagement.Intheagriculturesector,climatechangeissignificantlyincreasingriskstowateravailability,andtheincidenceofpestsanddiseases.DroughtsarelikelytobecomemorefrequentduetodecreasesinriverrunoffsfromtheAmudaryaandSyrdaryariversandtheirtributaryinflows.Somecommunities,particularlyinareasneartheAralSea,arealreadyvulnerabletoclimatechangeduetoreducedwateravailability,harsherclimate,higherlandsalinity,loweragriculturalproductivityandfoodinsecurity,andpoorerdrinkingwaterquality,sanitationconditions,andhealthoutcomes.ThemeasuresproposedinthisPERwouldrespondtotheimpactofclimatechangethroughlowerandmoreefficientwaterusageandclimate-smarttechnologyadoptioninagriculture,watersupplyandsanitation,andstrengthenedsocialassistancetoclimate-vulnerablecommunities.

6

Fiscalpolicyandtransparencyreformshavesupportedstrongeconomicmanagementthroughthereforms,andhelpedrealignpublicspendingtonewprioritiesemergingfromUzbekistan’sambitioustransformation.Improvementsinfiscalpolicyandpublicfinancialmanagementhaveplayedanimportantroleincreatingastablemacroeconomicenvironmentforreformstocontinue.2Injustthreeyears,nearlyalloff-budgetspending—whichwasestimatedtobemorethanhalfoftotalpublicspendingin2018—hasbeenfullyintegratedintotheannualconsolidatedbudgetthatisapprovedandoverseenbyparliament.3Betteraggregatefiscalinformationhashelpedrealignpublicspendingtonewgovernmentprioritiesarisingfromthereforms,andminimizethehumanandeconomicfalloutoftheCOVID-19pandemic.AsthesocialprotectionchapterofthisPERshows,thenumberofhouseholdsreceivinglow-incomeallowanceshasmorethantripled,fromabout0.5millionhouseholdsin2017toabout2millionhouseholdsin2022—consistentwiththegovernment’semphasisonacceleratingpovertyreductionandexpandingsocialsafetynets.Spendingonpubliceducation,health,andwaterandsanitationhasincreasedinresponsetogreateremphasisonimprovinghumancapitaloutcomesandonminimizinglossesfromCOVID-19.Highercapitalspendinginthesesectorsinrecentyearsalsomarksashiftfromthepast,wherecapitalexpenditureswereheavilyprioritizedtowardcentrallyplannedindustrialpolicyprojects.Tobalancethesespendingincreases,reformstolimitnewpublicdebtandmaintainoverallfiscaldisciplinehavehelpedreduceoff-budgetspendingandcurtailnon-prioritypublicinvestments.

Afteryearsofaggregatefiscalpolicyreforms,asectoralfocusondeliveringbetterpublicservicestomorecitizensistimelyandmuchneeded.Therearesignificantopportunitiestoimprovethequalityofpublicservicesbymakingpublicspendingatthesectorlevelmoreeffective,financiallysustainable,andefficient.Thefocusofpublicfinancereformsoverthepastfewyearshasbeentostrengthenaggregatefiscalcontrol,management,andoversight.Theemphasisofthegovernment’sreformsisnowshiftingtowardimprovingpublicspendingeffectivenessandservicequalityatthesectorlevel.ThisPERlooksatseveralofthemostcriticalservicesthatcitizenslargelydependonthegovernmentfor:health,education,socialprotection,andwater.Here,themainfindingofthisPERisthatthereissignificantscopetoimprovevalueformoneyfromsector-levelpublicspending,andforpublicspendingtohaveahigherimpactontheoutcomessoughtfromUzbekistan’seconomicandsocialtransformation.

Fivecross-cuttingpolicyrecommendationsemergefromthesectoralanalysesofthisPER:

1.Morespending.ThesectoralchaptersofthisPERonhealth,socialprotectionandirrigationfindthathigherbudgetallocationsineachsectorareneededtoachieveimprovedoutcomes.AlthoughpublicspendinginUzbekistan’shealthandwatersectorshasincreasedinrecentyears,thelevelremainslowincomparisonwithregionalandincomepeers.Out-of-pocketexpensespaidbyUzbekistan’spopulationarehigherthannearlyallregionalandincomecomparators.Increasedpublicspendingonwaterresourcemanagementisinsufficienttotheenormityofpublicinvestmentsneededtomodernizedatedinfrastructure:nearlythree-quartersofcoreirrigationinfrastructurerequiresrepairorreconstruction,andaquadruplingofannualcapitalspendingisneededtofullymodernizewaterinfrastructureinUzbekistan.Althoughsocialassistancespendinghasincreased,ashasthenumberofbeneficiaries,spendingremainslowbyregionaland

2Annex1ofthisPERprovidesanoverviewofhowfiscalpolicyreformshaveprogressedsincethelastPER(2019).

3Uzbekistan:PublicExpenditureReview,WorldBank(2019).

7

internationalstandards(Figure1.1).Asthesubsequentsectionofthisoverviewoutlines,morespendingintheseareascanstillcomefromwithinasustainablefiscalenvelope,andopportunitiestoreducespendinginotherareas.

Figure1.1.SocialSafetyNetSpending,2019

SSNspending,%ofGDP

6

5

4

3

OECD,2.5

ECA,2.12

Upper-middleincome,1.73

Lower-middleincome,1.580.96

1

0

Source:WorldBankstaffcalculations.

Note:ECA=EuropeandCentralAsia;OECD=OrganisationforEconomicCo-operationandDevelopment;SSN=socialsafetynet.

2.

Betterwithin-sectorbudgetallocations.Uzbekistanhasthelowestshareofnon-wagerecurrentspendingineducation(forexample,spendingonmaterialsandoperationalmaintenance)amongincomeandregionalcomparators(Figure1.2).Similarspendinginhealthalsoappearstoolow.Socialprotectionspendingisheavilytiltedtosocialassistance,whileactivelabormarketprogramspendingislowrelativetointernationalcomparisons,andtotheambitiousemploymentandjobscreationagendaenvisagedunderthegovernment’sreformstrategy.Operationsandmaintenance(O&M)spendingintheirrigationsectorisalmostentirelyforelectricitypayments,withlittleleftforinfrastructuremaintenance.

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Figure1.2.EducationSpending,byEconomicClassification,2019

Source:UzbekistanauthoritiesandWorldBankstaffestimatesusingexecutedbudgetfromtheMofofUzbekistan;WorldBankEdStats;OECDEducationataGlancedatabase.

Note:*CountrieslikeGeorgia,Tajikistan,Turkmenistan,andUkrainearenotincluded,duetolackofdata.ECA=EuropeandCentralAsia;OECD=OrganisationforEconomicCo-operationandDevelopment.

3.Astrongerpublicinvestmentframework.AlthoughcapitalspendinghasincreasedinsectorsstudiedinthisPER,investmentdecisionsremainfragmentedanddelinkedwiththeoperationalandmaintenancecosts.Theseweaknesseshaveled,forexample,toanexcessivedependencyoncostlypumpirrigationmethodsovergravity-basedirrigation,ortotheinsufficiencyofcapitalinvestmentsinhealthinfrastructureoverthepastdecade,evenascapitalspendinginotherareasincreased.Despitesignificantincreasesineducationcapitalspending,budgetsforschoolassetmaintenanceareexceptionallylowinUzbekistan.

4.Morefairnessinpublicservicesprovisionacrossthecountry.PercapitahealthandeducationspendingvariessubstantiallyacrossdifferentregionsofUzbekistan,despitetheheavylevelofcentralizedbudgetingandspendingonpublicservices.Thedifferencesdonotfollowpredictablepatterns—suchasbeingdependentonthelevelofgeographicaldispersionorregionalincomelevels—suggestingthatthereisroomformoreequitablebudgetallocationsacrossregions,basedontheneedsofcitizens(Figure1.3).

5.Moredataandevidenceonthequalityofoutcomesbeingdelivered.AlthougheffortsarebeingmadetoestablishstandardizededucationalassessmentsinUzbekistan,thelackofqualityeducationalachievementdataisoneofthebiggestbarrierstoimprovingtheperformanceofpublicexpenditureoneducation.Althoughspendingonsocialassistance—especiallylow-incomeallowances—hasincreasedseveral-foldsince2017,morei