Why is this important
Mahalla is the basic administrative unit of Uzbekistan. Transferring funding and authority to the community level is a step towards decentralization, increasing responsibility, and stimulating local development.
What happened
- 33 districts and 330 mahallas where the “New Uzbekistan” model will be implemented have been identified.
- The program has been financed for more than 7 trillion soums.
- The “Best Taxpayer Mahalla” rating is being launched — tax-compliant mahallas will receive 75% of infrastructure funding and 2 billion soums each.
- 10% of fines for environmental, sanitary, and construction violations will remain in the mahalla budget.
- Starting from 2026, mahalla budgets will receive 200 billion soums annually.
- 2,682 mahallas engaged in agricultural production will receive preferential resources for storage, packaging, and processing.
- Unused property up to 5,000 m² is allowed to be sold — 70% of the proceeds remain in the mahalla.
- For buildings with “seven” — tax benefits for up to 7 years
- At the initiative of residents and the “seven”, the khokim is obliged to allocate up to 10 sotix of land for the green zone.
What they say
Every mahalla should become a center of initiative, development, and self-government, — said Shavkat Mirziyoyev.
Context
Previously, mahallas were financed centrally and limitedly. Starting from 2023, an “initiative budget” mechanism is being introduced, whereby local initiatives are co-financed. A new stage is a step towards redistributing taxes and strengthening independence.
