Local Budget Transparency (KG0010)

Ensuring budget transparency of the local budgets and consideration the interests of local communities in the budget process
Commitment Start and End Date
September 1, 2018 – August 31, 2020
Lead implementing agency/actor Ministry of Finance of Kyrgyz Republic
Commitment description
What is the public problem that the commitment will address? At the moment there is lack of transparency in the forming and execution of local budgets, including lack of tools for citizens’ involvement in budget process, limited access to budget information and no reporting and statistical data database of the local administrations. This complicates the qualitative forecasting of local budget revenues, generates high corruption risks when planning local budgets, and causes increased financial dependence of local communities on the state.
What is the commitment? Tools for civil participation and mechanism for taking into account interests of local communities in budget process will be introduced by improving the system of public hearings and providing more complete information via the Local Budget information system to citizens.
How will the commitment contribute to solve the public problem? The introduction of the regulated and comprehensible mechanism for taking into account interests and needs of local communities in budget process will ensure better budget transparency of the local self-government as well as strengthen institution of local self-governance. The implementation of the “Local Budget” information system will enable for forecasting, planning and executing the local budgets system, improve analysis of local budgets, and reduce corruption risks in interaction of the local governments with regional departments of the Ministry of Finance.
Why is this commitment relevant to OGP values? Transparency: Citizens will get more complete information on planning and execution of the local budgets.

Citizen Participation: Citizens will have the opportunity to participate in budget process through an improved mechanism for the local level budgetary hearings.
Additional information
Milestone Activity with a verifiable deliverable Budget Start Date End Date
Activity 1: Building a transparent budget process at the local level.
1.1. By the Government Resolution to develop and endorse:
- compilation methodology of the civil budget for local budgets,
- methodology for conducting the state and local budgets public hearings;
- methodology for assessing the municipal index of budget transparency
- make other necessary changes to the legislation of the Kyrgyz Republic ensuring the participation of civil society in the LAs budget process. Within the national budget October 2018 December 2019
1.2. Conduct a public information campaign among local communities and local authorities to disseminate methods of civic participation in the budget process at the local level. Within the national budget March 2019 December 2019
1.3. Develop terms of reference for the revision and launch of the Local Budget Information System (LBIS) (considering existing and planned information systems used by MoF), procure the necessary equipment and implement the system at a pilot level Development partners’ funds

Within the national budget August 2019 August 2020
1.4. Develop and implement negotiation regulations between the local communities represented by LAs and the state on inter-budgetary relations and the allocation of public finances for regional development and local issues (by developing and adopting an appropriate RLA, training participants and conducting a pilot cycle coordination). Within the national budget September 2019 August 2020
Expected result 1 1.1. 28.1. Presentation of local budgets in an accessible and simplified form has been ensured. This will provide an opportunity for all citizens, including those who do not have special education, to receive information about local budgets. The Government of the Kyrgyz Republic has endorsed a methodology for conducting public budget hearings that allowed the best possible consideration of the priority needs of citizens, as well as a methodology to evaluate the transparency of local budgets.
A unified procedure has been introduced to develop the approval of rules for conducting activities aimed at increasing public participation in the budget process at the local level.
1.2. Citizens, local communities and local authorities are informed about methods of involving citizens in the budget process and apply them in practice.
1.3. The transparency of local budgets is ensured through public access to the Local Budget Information System data.
1.4. Regulations to align the interests of local communities and state on inter-budgetary issues have been introduced. The interests of local communities and needs of citizens are more fully taken into account when planning and executing budgets of all levels.
Contact information
Name of responsible person from implementing agency Mr. A.T.Dushebaev
Title, Department Leading Specialist, Department of Macroeconomic Analysis and Monitoring of State Programs
Email and Phone (0312) 625319(extension number 1323), (0708) 559988
a.dushebaev@minfin.kg, aibek.dushebaev@gmail.com
Other Actors Involved – State actors involved SALGIER
CSOs, private sector, multilaterals, working groups Development Policy Institute