Equalization transfers to local budgets to fall 33.5% in 2027, Finance Ministry says

Equalization transfers from the republican budget to local budgets in Kyrgyzstan are set to total 1.24 billion soms in 2027, 33.5% less than the approved 2026 budget, according to data from the Ministry of Finance. The reduction amounts to 626.1 million soms. The ministry explains the cut by growth in receipts from some taxes. Under a new methodology, the basis for equalization is the difference between income and expenditure indicators.

Transfers for 2028 and 2029 are planned at the 2027 level. Osh region will receive the most, 345.1 million soms, followed by Batken region with 289.1 million and Naryn region with 274 million. Among districts, Kara-Kulja receives the largest transfer, 146.7 million soms. Aravan district's transfer is cut to 0.7 million soms from 55.1 million, and Kara-Suu's to 5.2 million from 56.3 million.

In 2025, local budgets actually received 2.21 billion soms in equalization transfers.