New rules for fund allocation and expenditures in the ‘Initiative Budget’ process

On January 13, the Council of the Senate of the Oliy Majlis adopted a resolution introducing changes to the procedure for conducting the “Initiative Budget” process.

Under the new guidelines, each year, district and city budgets will allocate sufficient funds for no fewer than 10 and no more than 30 projects. The distribution of funds for more than 10 projects will be based on the population share of each district or city.

Currently, the maximum threshold for individual projects is set at 1.5 billion sums. As a result, the total funds allocated from district and city budgets will range from a minimum of 15 billion sums to a maximum of 45 billion sums.

Additionally, in an effort to improve the efficiency of fund usage and address social issues more effectively, certain expenditures have been restricted. Organizations participating in the “Initiative Budget” process are prohibited from purchasing vehicles, public safety equipment (such as radar, surveillance cameras, and traffic lights), and furniture for senior officials.

Furthermore, due to the transition to a self-financing system, higher education institutions that achieve financial independence starting in the first quarter of 2025 will no longer be allowed to participate in the “Initiative Budget” process.

The resolution also stipulates that half of the allocated funds for the first quarter will be transferred in January, while the remainder will be disbursed in May for the second quarter.

The Ministries of Preschool and School Education, as well as Health, have been tasked with submitting a revised equipment register to the Ministry of Economy and Finance within 10 days. This register will detail the specific characteristics of goods eligible for purchase under the “Initiative Budget.”

Moreover, the Ministry of Poverty Reduction and Employment, in collaboration with the Ministry of Economy and Finance, will oversee efforts to prevent instances of forced voting involving budget organization employees and will provide the Senate of the Oliy Majlis with reports at the end of each season.

It is worth noting that the Open Budget Projects Calendar for 2025 has already been approved.