Article 140. Inter-budget transfer in the form of a budget loan

An interbudgetary transfer in the form of a budget loan (budget loan) is provided on a repayable interest-free or interest basis, provided that the maximum mobilization of budget sources does not cover the costs provided for by the relevant budgets.

Budget loans are provided to cover:

planned temporary cash gap between forecasted revenues and planned expenses in one financial year - for a period of up to nine months on an interest-free basis;

expected temporary cash gap between revenues receipts and expenses — for one financial year for a period of up to six months on an interest-free basis and for a period of more than one financial year, but not more than three financial years at two percent per annum.

A planned budget loan is provided in cases where projected revenue receipts, envisaged interbudgetary transfers, temporary borrowing from working cash and available balances at the beginning of the year do not cover the expenses provided for by the corresponding approved budgets in individual quarters.

The budget loan is provided using funds from:

the republican budget of the Republic of Uzbekistan — the republican budget of the Republic of Karakalpakstan, the regional budgets of the regions, the city budget of the city of Tashkent, the budgets of state trust funds;

the republican budget of the Republic of Karakalpakstan, regional budgets of regions, the city budget of the city of Tashkent — the budgets of districts and cities to cover the planned or expected temporary cash gap between their revenues and expenses.

In case of shortfall in income or the need for early expenditure of funds provided for the financial year in the republican budget of the Republic of Karakalpakstan, regional budgets of regions, the city budget of the city of Tashkent, budgets of districts and cities, budgets of state trust funds, in the absence of a balance of revenues and expenses of the relevant budgets, the basis for the allocation budget loan can be a written or electronic application to the Ministry of Finance of the Republic of Uzbekistan, the Ministry of Finance of the Republic of Karakalpakstan, financial departments of regional khokimiyats and the city of Tashkent.

The size of the allocated budget loans is determined by quarterly redistribution of annual planned revenues and expenditures of the relevant budget to cover the planned temporary cash gap that arises between revenues and expenses in certain quarters for the next financial year.