Kyrgyzstan has approved a mechanism to support local initiatives through special funds

The Cabinet of Ministers has approved regulations on funds to support local community initiatives — a new mechanism designed to give residents of towns and aiyl aimaks greater opportunities to participate in setting local development priorities and in the budgetary process.

The relevant resolution was adopted on 25 September. The Ministry of Finance has been tasked with providing local authorities with guidance on the establishment and development of such funds.

The idea is that some local initiatives should be shaped not only from above — by the authorities — but also come directly from residents. Legislation on local self-government already provides for citizens’ participation in discussions on matters of local importance, public hearings and the setting of local development priorities. The new mechanism is intended to add a separate tool to support community initiatives.

The establishment of these funds is provided for under the state programme for subsidising local community initiatives for 2024–2027.

Practical testing of the mechanism began even before the regulations were approved. In February 2026, the Ministry of Finance announced a pilot scheme to set up funds in five towns and rural areas in collaboration with civil society organisations. It was envisaged that residents would be able to participate in discussions on the local budget, propose their own projects and receive support for initiatives aimed at developing their local communities.

In this way, the funds are intended to act as a link between local budgets, local authorities and the residents themselves — particularly when implementing small-scale projects that are significant for a specific community.

However, the decree itself does not set a uniform level of funding for all territories. The amount of resources and the specific range of supported initiatives will depend on local capabilities and decisions, as well as on state support mechanisms.

The system forms part of a broader model of participatory budgeting. Kyrgyzstan’s Budget Code already provides for incentive, or matching, grants – funds from the national budget are allocated to local authorities on a competitive basis, subject to co-financing from local budgets and other sources.

The main difference with the new mechanism is the attempt to strengthen the direct involvement of residents themselves in determining which projects are needed in a specific area.