Uzbekistan to allocate 12 trillion sums to “difficult” districts and mahallas

This year, Uzbekistan will allocate 20 trillion sums to the regions to improve infrastructure, with 12 trillion sums directed specifically to “difficult” districts and mahallas. This was announced on January 23 at a videoconference meeting chaired by President Shavkat Mirziyoyev on the key tasks to be implemented in 2026 to reduce poverty and ensure employment.

It was noted that studies conducted in the districts identified 37 “difficult” districts based on 20 criteria, including infrastructure, living standards, business activity, and financial capacity. In addition, a detailed analysis of each district resulted in the selection of 903 “difficult” mahallas with high poverty levels.

It was found that one-third of poor families and 21 percent of the unemployed population are concentrated in these 37 districts and 903 mahallas. Work to introduce the “New Uzbekistan” model has also begun in another 33 districts and 330 “difficult” mahallas.

“If we focus our main efforts on these 70 districts and 1,000 ‘difficult’ mahallas, we will be able to reduce the national poverty rate by more than 3 percent,” the President said.

According to the statement, residents and entrepreneurs in “difficult” districts and mahallas are requesting improvements in roads, water supply, and electricity rather than tax incentives. In this regard, it has been decided that 20 trillion sums will be allocated to the regions this year for infrastructure development, with 12 trillion sums directed to “difficult” districts and mahallas.

Funds transferred from the national budget to local budgets will be doubled, with 4.2 trillion sums allocated to local governors. From now on, regional governors will allocate 10 billion sums to each “difficult” district and 1 billion sums to each of the 903 mahallas.

In addition, each “difficult” district will receive an extra 50 billion sums, and each “difficult” mahalla will receive 2 billion sums. This means that district administrations and local councils will receive an additional 4 trillion sums for “difficult” districts and mahallas.

“Governors should take note: these funds must serve to reduce poverty and unemployment by half through infrastructure improvements.

District governors will address their residents directly, explaining mahalla by mahalla how many people will be employed and how many families will be lifted out of poverty.

After allocating such significant funds, district governors must assume responsibility before the people and be held accountable. Let the public itself assess the performance of local administrations,” the President said.

It was also emphasized that regions should be developed based on their comparative advantages in industry, agriculture, and services. The President explained this approach using the examples of Furqat and Dehqonobod districts.

The Ministry of Economy and Finance and the Ministry of Poverty Reduction and Employment were instructed to analyze the comparative advantages of the 70 districts and 1,000 “difficult” mahallas and develop a separate, financed program for infrastructure projects that stimulate job creation and income growth.

It was decided that industrial zones and clusters covering 1–2 hectares will be established in each district to connect 5–10 mahallas, creating jobs for up to 100,000 people nationwide.