Koenji Office Building / SO&CO located near Koenji Station

According to the new Fiscal Strategy developed by the Ministry of Economy and Finance, the inflation rate is planned to be maintained at around 5% in 2027. This document serves as a key strategic guideline aimed at ensuring medium-term macroeconomic stability, effective management of public finances, and improving the welfare of the population in the country.

Key Objectives of the Strategy

The strategy defines priority tasks, which include maintaining inflation at around 5%, preventing the budget deficit from exceeding 3% of GDP, keeping the national debt at a safe level, and increasing citizen welfare.

Basis and Goals of the Document

The Fiscal Strategy for the period 2027–2029 was created based on the Republic of Uzbekistan Budget Code, the 'Uzbekistan–2030' strategy, and programmatic documents concerning the improvement of the public financial management system. The main goal of the document is to ensure sustainable economic growth, control inflation, keep the budget deficit within limited limits, and maintain a safe level of public debt.

Mechanisms and Forecasts

In accordance with the Fiscal Strategy, the consolidated budget deficit should not exceed 3% of GDP, as established in the 'Uzbekistan–2030' strategy. Furthermore, the procedure for calculating the budget deficit was improved in 2026: it now takes into account operations under the state budget, funds from state target funds, as well as budget loans and credit lines.

Fund Allocation and Risks

The document also reflects preliminary forecasts of state budget revenues and state target fund revenues for 2027, as well as key indicators for 2028–2029. It functions as the main programmatic document when determining the volume of funds allocated to primary budget recipients and transfers directed to local budgets. Among the main goals emphasized is the need to ensure sustainable economic growth, maintain inflation at 5% in 2027, limit the deficit to 3% of GDP, prevent the national debt from exceeding 40% of GDP, improve the efficiency of the public finance system, and ensure the targeted use of budget funds.

Position Regarding the Global Situation

The document notes that despite geopolitical tensions in the global economy and external economic uncertainty, the reforms being implemented in the country are creating a solid foundation for ensuring high rates of economic growth.

According to the latest report filed before the NCLAT bankruptcy appellate tribunal, the debt group IL&FS has repaid an amount of ₹50,387 crore by June 2026.

Comparison with previous data

This amount exceeds the sum of ₹48,463 crore, which was repaid by IL&FS according to the last report submitted in September 2025, by about 4 percent.

Achievement of debt resolution targets

Thanks to the repayment of ₹50,387 crore, the total debt resolution for the IL&FS group has approached 82.6 percent of the set target of ₹61,000 crore. This target represents approximately 61.38 percent of the total outstanding external debt of ₹99,377 crore.

Repayment of debts to various creditors

Furthermore, the company has paid 88.4 percent, equivalent to approximately ₹57,000 crore, of its total debt of ₹91,000 crore, as assessed at the time management took over. A significant portion of the company's equity capital belongs to public financial institutions, including the Life Insurance Corporation of India (LIC), State Bank of India (SBI), and Central Bank of India.

Debt repayment mechanisms

IL&FS is repaying debts through asset resolution, interim distribution, which includes cash and InviT units, among others. Out of the total amount of ₹50,387 crore as of June 30, 2026, the debt settled through monetization, cessation, or transfer of assets into InvIT amounts to ₹26,027 crore. Repayments are also made through automatic write-offs, servicing of principal in 'green' structures (profitable IL&FS structures), and release of non-financial limits provided by its subsidiaries.

Fund distribution and balances

The IL&FS Group report indicates that these efforts, along with the repayment of debt obligations, have led to the resolution of debt amounting to approximately ₹8,347 crore as of June 30, 2026. Additionally, IL&FS has disbursed ₹16,013 crore to external creditors through interim distribution.

In accordance with the NCLAT order dated May 31, 2022, and other related directives, the total debt repaid to financial creditors through interim distribution reached ₹18,398 crore by June 30, 2026, of which ₹16,013 crore was directed to external financial creditors. The IL&FS group holds cash reserves of ₹7,259 crore, of which ₹1,551 crore is available for interim/final distribution. The remaining ₹3,783 crore is under resolution in remaining structures, and ₹1,925 crore is reserved for ongoing operational expenses and contingent and external claims. It should be noted that the value of InviT units held by some IL&FS Group structures is ₹326 crore.

Structure of the IL&FS group

At the time of the crisis, on October 15, 2018, the IL&FS group comprised 302 structures: 169 were internal group structures, and the remaining 133 were offshore group structures.