Mahallas to Become Centers for Public Services and Development

Uzbekistan

President Shavkat Mirziyoyev has announced a new package of initiatives aimed at strengthening the financial independence of mahallas, improving local infrastructure, and expanding access to public services. The measures include new revenue sources, digital services, and incentives for community development.

Mahallas to Become Centers for Public Services and Development
During a nationwide videoconference, it was announced that mahallas would receive broader financial authority. Since June, the share of land and property taxes retained by local budgets has increased from 10% to 15%. In addition, 10% of fines imposed for sanitary violations and illegal construction will now be transferred directly to mahalla budgets.

Another source of income will come from granting mahallas the right to auction vacant buildings of up to 5,000 square meters. They will also retain an additional 5% of land and property taxes collected from non-residential properties. These measures are expected to generate more than 800 billion soums in additional annual revenue.

The President also instructed the government to reward the country's best-performing districts. Two hundred districts demonstrating the strongest results in entrepreneurship, job creation, income growth, and expansion of the local tax base will each receive 2 billion soums.

Special attention will be given to urban improvement. As part of the newly announced "Month of Prosperity and Kindness in the Mahalla," regional and local authorities will coordinate landscaping, sanitation, and infrastructure projects. Competitions for the best neighborhood, street, apartment building, and courtyard will be introduced, with tax incentives awarded to winners.

Another major reform focuses on bringing public services closer to citizens. Government services will gradually be transferred to the mahalla level. Following successful pilot projects in Namangan and Syrdarya regions, information service centers and "smart mahalla" initiatives will be expanded across other regions of Uzbekistan.

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