Transfers to local budgets have more than doubled

Between January and August 2026, Kyrgyzstan’s local budgets received 22.99 billion KGS in transfers from the national budget. A year earlier, the figure stood at 9.86 billion KGS.

Consequently, the level of support increased by 13.13 billion KGS, or 2.3 times.

Earmarked transfers accounted for virtually the entire increase. They totalled 21.74 billion KGS, or 94.6 per cent of the total. A year ago, only 8.38 billion KGS had been allocated under this heading. Over the course of the year, earmarked support increased 2.6-fold.

At the same time, equalisation transfers, intended to cover the financial shortfall in local budgets, fell from 1.47 billion KGS to 1.25 billion KGS – a decrease of 15.4 per cent. Their share of the total volume of transfers fell from 15 per cent to 5.4 per cent.

In other words, the growth in inter-budgetary support in 2026 is not linked to an expansion of equalisation grants, but to a sharp increase in targeted transfers for specific areas and projects.