Narkuziev Anvar Rustamovich
Associate professor of the department “Theory of Economics”
of Tashkent State University of Economics
Tashkent, Uzbekistan.
E-mail: anvar.norquziyev824@gmail.com
ORCID: 0009-0008-4211-8548
Abstract: This article provides a comprehensive analysis of the macroeconomic nature of public debt and its role in ensuring economic growth, fiscal sustainability, and long-term socio-economic development. The study examines the theoretical foundations of public debt, the structure of domestic and external debt, the sources of its formation, its relationship with the budget deficit, and methods for assessing the debt-to-GDP ratio. Particular attention is paid to the impact of public debt on the effectiveness of fiscal policy, the financing of public investment programs, the maintenance of macroeconomic equilibrium, and the strengthening of economic security. The research analyzes recent trends in the use of public debt in the Republic of Uzbekistan within the framework of ongoing economic reforms and evaluates the effectiveness of borrowed funds allocated to infrastructure development, modernization of the energy sector, transport systems, industrial enterprises, and social infrastructure. At the same time, the study investigates the potential risks associated with excessive public debt accumulation, including increased debt burden, inflationary pressures, deterioration of public finances, and threats to fiscal sustainability. The findings indicate that the economic efficiency of public debt largely depends on the targeted allocation of borrowed resources to high value-added investment projects, the rational diversification of the debt portfolio, maintaining debt at a sustainable level in accordance with international standards, and strengthening fiscal governance mechanisms. Furthermore, the article proposes scientifically grounded conclusions and practical recommendations aimed at improving public debt management, increasing the efficiency of debt-financed expenditures, enhancing fiscal discipline, and ensuring long-term macroeconomic stability. The research findings may serve as a scientific basis for improving public debt policy, promoting sustainable economic growth, strengthening the country’s financial resilience, and enhancing the effectiveness of public financial management under the conditions of economic modernization and global economic uncertainty.
Keywords: public debt, macroeconomic stability, fiscal policy, budget deficit, external debt, domestic debt.