DIVERSIFYING FINANCE AND STRENGTHENING RISK BASED AUDIT FOR LOCAL PUBLIC EXPENDITURE IN UZBEKISTAN

Abstract

Financing diversification can widen the resources available for public services while creating future fiscal commitments that annual expenditure figures fail to reveal. This article develops an integrated framework for local public expenditure in Uzbekistan, linking the choice of financing sources to fiscal risk disclosure, internal control and independent audit. Documentary policy analysis combines official mortgage financing statistics, legal instruments and international governance frameworks with reported findings from the underlying research material. In 2025, the Uzbekistan Mortgage Refinancing Company supported approximately 9,000 borrowers through UZS 2.2 trillion in mortgage lending; reported resource mobilisation included USD 63 million from international financial institutions and UZS 600 billion from the domestic capital market. Calculations distinguish source concentration from financing cost and direct budget contributions from the present value of future public obligations. The proposed control architecture assigns transaction responsibility to management and independent assurance to internal audit, using shared project identifiers, digital alerts and verified citizen signals. A reported 17.8 percent improvement in expenditure efficiency during 2022–2023 is retained as a documentary claim because its calculation method is unavailable. The framework provides an operational basis for assessing financing choices and audit priorities; measured local budget savings and causal effects remain to be tested.