Improving the Mechanism For Managing Local Budget Expenditures (on the example of Khorezm region)

Effective public financial management is essential for regional development, especially in countries undergoing decentralization. In Uzbekistan, local budget management plays a key role in regional economic growth, with the Khorezm region facing significant challenges in expenditure management. Despite ongoing reforms, there is limited empirical research on the efficiency and transparency of local budget expenditures in Khorezm, particularly regarding the integration of performance-based budgeting and participatory mechanisms. This study aims to evaluate the current state of local budget expenditure management in Khorezm, identify inefficiencies, and propose strategic recommendations for improvement. The analysis reveals that education and healthcare sectors dominate local spending, but inefficiencies, such as delayed disbursements and lack of performance monitoring, hinder optimal resource allocation. The study introduces a comprehensive evaluation of Khorezm’s expenditure patterns and examines the effectiveness of digital tools and citizen participation in the budgeting process, contributing to the broader discourse on fiscal decentralization in Uzbekistan. The findings offer practical recommendations for improving transparency, accountability, and performance-based budgeting in Khorezm, with potential applications for other regions of Uzbekistan. Enhanced fiscal management can lead to better service delivery, greater public trust, and sustainable regional development.