Local budgets have become less dependent on transfers

Local budget revenues in Kyrgyzstan, based on the results for January–October 2025, including proceeds from the sale of non-financial assets, reached 59.6 billion KGS. Compared to the same period in 2024, they increased by 6.28 billion KGS, or 11.8%.

Local budget expenditures for the reporting period amounted to 53.58 billion KGS. This is 4.46 billion KGS (+9.1%) more than a year earlier. As a result, local budgets ended January-October with a surplus of 6.03 billion KGS, compared to 4.21 billion KGS last year.

Taxes were the key driver of revenue growth. They accounted for 51.2% of all local budget revenues, or 30.53 billion KGS. Over the year, tax revenues grew by 3.84 billion KGS, or 14.4%. Their share in the revenue structure increased by 1.2 percentage points.

Against this backdrop, the role of official transfers declined significantly. In the first ten months of 2025, local budgets received 12.14 billion KGS in transfers, which is 7.51 billion KGS (-38.2%) less than a year earlier. Their share in revenues fell by 16.4 percentage points at once, to 20.4%.

Revenue growth and a more moderate increase in expenditures allowed local budgets to maintain a positive balance throughout the year. Thus, while the surplus amounted to 2.09 billion KGS at the end of January, it grew to 6.03 billion KGS  by October, despite active growth in expenditures in the second half of the year.