In accordance with the "Strategy for improving the public finance management system of the Republic of Uzbekistan for 2020-2024", approved by the Resolution of the Cabinet of Ministers No. 506 dated August 24, 2020, reforming interbudgetary relations, increasing the independence and accountability of local governments in line with introducing a transparent mechanism for allocating and providing based on the rules of intergovernmental transfers is defined as one of the main tasks.

In order to ensure the rationality and efficiency of the public finance management system, within the technical assistance of the Asian Development Bank, the Ministry of Finance is taking measures to improve interbudgetary relations between the budgets of the budgetary system, providing for a clear division of responsibility for expenditures and strengthening the sources of income for each of them, as well as introducing a single transparent methodology for calculating and allocating the amount of interbudgetary transfers.

To implement reforms in this direction, employees of the Ministry of Finance, together with an international expert invited by the Asian Development Bank, Andrey Timofeev and local consultant Shukhrat Usmanov, organized an analysis of income and expenses, as well as existing problems of the local budget of the Tashkent region.

In particular, on February 18 of this year, a seminar was held in the Main Department of Finance of the Khokimiyat of the Tashkent region with the participation of employees of the Ministry of Finance and local consultant Shukhrat Usmanov for specialists from regional and city finance departments of the region.

During the seminar, the reforms realized in recent years to increase the independence of local budgets, the results achieved in this direction and the existing problems in the methodology for calculating interbudgetary transfers introduced in 2020 were considered.

It is planned to continue the analysis of local budgets and study of existing problems in the Syrdarya and Namangan regions. Based on the recommendations of the international expert Andrey Timofeev, based on the research results, it is planned to:

to clarify the definition of the distribution of state budget expenditures between the budgets of the budgetary system;

improvement of inter-budgetary relations, providing for the strengthening of sources of income;

introduction of a unified transparent methodology for calculating and distributing the amount of interbudgetary transfers.

Source: Ministry of Finance of the Republic of Uzbekistan