The Impact of Taxes on The State Budget and Their Significance in The National Economy

Abstract

This article examines the impact of taxes on the state budget and their significance in the national economy of Uzbekistan. The study is based on macroeconomic data for 2020–2024 and highlights that taxes constitute the main source of state budget revenues, maintaining a stable share of over 80%. In particular, total state budget revenues increased from 132.9 trillion UZS in 2020 to 270.5 trillion UZS in 2024, while tax revenues rose from 108.7 trillion UZS to 220.0 trillion UZS during the same period . These indicators demonstrate the effectiveness of tax policy reforms and the strengthening of fiscal stability in the country. The research emphasizes that taxes play a dual role: not only as a source of public finance but also as a key instrument for economic regulation. The findings show that reforms implemented in recent years, including the reduction of tax rates, simplification of tax administration, and digitalization of tax processes, have contributed to expanding the tax base, reducing the shadow economy, and stimulating entrepreneurial activity.Furthermore, the article analyzes the structure of tax revenues, indicating that value-added tax, profit tax, and personal income tax form the largest share of budget revenues. The study concludes that effective tax management is essential for ensuring sustainable economic growth, improving living standards, and maintaining macroeconomic stability. The results underline the importance of continuing tax system modernization in line with international standards and strengthening institutional mechanisms for tax administration.