Tashkent, Uzbekistan (UzDaily.com) — Starting from 1 August 2025, Uzbekistan will launch a pilot reform of district governance aimed at overhauling the organizational structure and incentive systems within local administrations.

President Shavkat Mirziyoyev announced the initiative during a meeting held on 16 June, highlighting that the Syrdarya district will serve as the testing ground for this transformative effort.

Key reform element: financial decentralization

Under the new model, a portion of revenues generated from administrative and financial penalties, tax fines, forestry land lease payments, land category conversion fees, and government service charges will remain within the district’s budget. This is expected to give Syrdarya district an additional 12 billion UZS annually, granting it greater flexibility to finance local development initiatives.

Stronger authority for district governors

District hokims (governors) will gain broader authority, including the power to form their own leadership teams of four deputies based on the district’s strategic priorities. Over the next three years, Syrdarya will focus on tourism, logistics, and the service sector. The first deputy hokim will be tasked with implementing 10 specific, financially justified objectives to drive progress in these areas.

Similar performance-driven mandates will be applied to other areas of local governance. Each department's effectiveness will be assessed using clear Key Performance Indicators (KPIs). Districts that meet or exceed targets will receive a 10–15% budget increase the following year. Poor performance will result in stagnant funding and leadership changes.

Creation of a Reform Task Force

A dedicated Reform Task Force will be established, bringing together representatives from nine ministries and agencies, the Chamber of Commerce and Industry, the banking sector, the tax authority, land registry offices, and business leaders. Over a three-month period, the task force will develop a three-year development plan for all 38 mahallas (neighborhoods) in the district. This plan will shape the district’s 2026 budget and define priority projects in infrastructure, investment, industry, employment, and public services.

Nationwide rollout possible from 2026

President Mirziyoyev emphasized that if the pilot proves successful, the model will be scaled to all districts nationwide starting in 2026. To incentivize performance, salaries for employees of regional and district khokimiyats will be increased from 1 August. Performance-based bonuses and allowances will also be introduced — but only for those who demonstrate results.

"The cotton harvest needs two hands," the president stated, stressing that discipline and dedication will be required. "Those who do not perform will be dismissed. Only through order and planning can we move forward."

Stronger accountability and personnel management

President Mirziyoyev also announced that by the end of the first half of the year, detailed performance reports will be required from every hokim, deputy hokim, minister, and bank head. "I will uncover the truth and demand concrete results," he asserted.

A major change will occur in local human resources management: nine key ministries and agencies — including those responsible for economy and finance, investments, agriculture, environment, employment, culture, and family, women, and youth affairs — will be structurally integrated into district khokimiyats. Hokims will have full authority to hire and dismiss staff and reallocate resources based on local needs.

This reform is expected to boost local autonomy and significantly enhance the accountability of leadership at all levels of governance.