Assessment of the efficiency and effectiveness of local budget revenue and expenditure management

Abstract

This article examines a methodology for assessing the efficiency and effectiveness of local budget revenue and expenditure management. It combines documentary analysis, a comparison of international frameworks and financial ratio calculations. Revenue-to-expenditure ratios are calculated for 14 territories using the forecasts presented in Uzbekistan’s State Budget Law for 2025. The ratios range from 60.08 to 97.69 percent. These differences are shown to be insufficient for a conclusive assessment of management quality. A diagnostic model is proposed that combines planning reliability, fiscal discipline, expenditure economy, service effectiveness, transparency and accountability. Territorial fiscal conditions are distinguished from management performance. The approach requires comparable data, verification of service results and sensitivity analysis of indicator weights. Forecast-based calculations are treated as a structural diagnosis rather than evidence of actual budget execution or a validated ranking of local governments.