kizi, Makhkamjonova Khumora Bakhtiyor (2026) From Tax Expenditures to Risk-Sharing: Redesigning the Financial Support Mechanism for Small and Medium-Sized Enterprises in Uzbekistan Through the Commercial Banking Channel. American Journal of Economics and Business Management, 9 (10). ISSN 2576-5973

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Abstract

Small and medium-sized enterprises (SMEs) generated more than half of Uzbekistan’s GDP in 2025, yet their access to finance remains constrained by collateral requirements, information asymmetry and high borrowing costs. This article examines how state financial support for SMEs is divided between fiscal instruments (tax and customs exemptions) and bank-based instruments (credit guarantees, interest compensation and refinancing), and whether the national guarantee mechanism meets international good practice. The study combines a comparative-institutional analysis of Uzbek legal acts adopted in 2022–2025, descriptive indicators computed from official data, and benchmarking against the World Bank Principles for Public Credit Guarantee Schemes and four national systems. Tax and customs exemptions reached UZS 178.1 trillion in 2025—about 58 per cent of projected budget revenue and 6.3 times planned subsidies—while their distribution by firm size is not disclosed. The Entrepreneurship Development Company mobilised about 2.6 units of bank credit per unit of guarantee and 7.5 per unit of interest compensation, but its realised guarantee coverage of 38.9 per cent lies below both the national cap of 50 per cent and benchmark levels. The guarantee institution lacks a dedicated legal basis and an additionality assessment. The article argues for a gradual shift from untargeted tax expenditures to result-linked risk-sharing through commercial banks and proposes differentiated guarantee coverage, a statutory additionality test, bank co-financing of guarantee pools and a six-indicator evaluation framework.

Item Type:	Article
Uncontrolled Keywords:	SME finance, credit guarantee schemes, interest rate compensation, tax expenditures, additionality, development finance institutions, Uzbekistan
Subjects:	H Social Sciences
Depositing User:	admin eprints
Date Deposited:	31 Oct 2026 11:21
Last Modified:	31 Oct 2026 11:21
URI:	http://eprints.umsida.ac.id/id/eprint/17361

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