IMPROVING LOCAL BUDGET EFFICIENCY THROUGH THE OPTIMIZATION OF SOCIAL SPENDING: EVIDENCE AND POLICY IMPLICATIONS FROM UZBEKISTAN

Abstract

Improving the efficiency of local budgets through the optimization of social spending is a critical priority for developing economies facing growing social demands and constrained fiscal resources. In Uzbekistan, local governments play an increasingly important role in delivering social services, yet significant inefficiencies persist in the allocation and utilization of public funds. This article examines conceptual approaches, empirical evidence, and institutional reforms related to social expenditure efficiency, focusing on performance-based budgeting, fiscal decentralization, digital governance, and participatory mechanisms. Using recent statistical data from Uzbekistan, the study analyzes structural changes in social spending patterns, evaluates efficiency outcomes, and proposes a multi-dimensional optimization framework. The findings indicate that strategic resource reallocation, enhanced transparency, and digital budget management can substantially improve fiscal outcomes and social welfare. The proposed model contributes to policy formulation aimed at strengthening local public finance sustainability and inclusive development.