THE ROLE OF INTERGOVERNMENTAL TRANSFERS IN MITIGATING REGIONAL INEQUALITY IN UZBEKISTAN: EMPIRICAL ASSESSMENT AND DIRECTIONS FOR IMPROVEMENT

The paper analyses the current state of the intergovernmental transfer system in Uzbekistan, changes in the revenue base of local budgets and the regional distribution of equalization transfers on the basis of official statistical data. Regional inequality is measured using the Theil index, the Gini coefficient and the coefficient of variation, while the progressivity of transfer allocation is assessed with a regression model. Based on the results, proposals are developed for transitioning the transfer system to formula-based equalization.

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