TAJIKISTAN

According to the Constitution, adopted in 1994, Tajikistan is a republican unitary State with a presidential form of government. The National Parliament (Majlisi Oli) consists of two chambers, the lower chamber, called the Assembly of Representatives and the upper chamber. The lower chamber is composed of 33 members serving a five-year term, of which 25 are elected by the regional delegations including the centrally-governed cities and the capital city, and the eight remaining members are elected by the president. The upper-chamber is composed of 63 members of which 41 are elected via direct general elections and 22 via the proportional party list system with a 5% threshold for seat allocation. The latest legislative elections were held in 2020. The president is the head of State and government; and the same incumbent has held the post since 1992.

In the wake of the civil war (which started in 1992 and ended with the 1997 peace agreement), the Constitution established an asymmetric decentralised system of government within a unitary system, to check and balance the interests of regional elites. The imperative of national stability has marked institutional reforms and increased the centralisation of governance. As a result, subnational governments represent deconcentrated bodies rather than decentralised governments with adequate autonomy and under a legal framework protecting their prerogatives. The national multi-level governance framework operates under the concept of ‘dual subordination’, which implies that, at the subnational level, chairpersons and administrative bodies operate under dual allegiance: the national republic and/or local regional interest. Relations between the national government, local state governments and local self-governments are regulated by specific legislation on the System of State Government, on Local State Governments, on the Status of the Republic of Tajikistan Capital City, on the Autonomous Gorno-Badakhshan Region and on the Mountain Regions.

The Medium-Term Development Strategy for 2021–25 provides for expanding the process of the localisation of the Sustainable Development Goals (SDGs), strengthening local self-government, and the transformation of small and medium-sized cities into poles of sustainable development.

TERRITORIAL ORGANISATION
MUNICIPAL LEVEL	INTERMEDIATE LEVEL	REGIONAL LEVEL	TOTAL NUMBER OF SNGs (2021)
368 local self-government bodies (jamoats)	13 cities (shahr) and 38 districts (dehot) of regional subordination 4 cities and 9 districts of national subordination 4 intra-city districts of the capital city Dushanbe	4 local state governments of national subordination in: 2 regions (vilojati) 1 autonomous region 1 capital city
Average municipal size: 25 918 inh.
368	68	4	440

Name of sub-municipal entities:

Intra-city and village communities (mahalla/guzar)

Their number is not available.

OVERALL DESCRIPTION: The system of subnational governments in Tajikistan is asymmetric and can be grouped into three categories: local state governments of national subordination, local state governments of regional subordination and local self-governments. Under the 1995 Constitutional Law on Procedure of Administrative-Territorial Organisation of the Republic of Tajikistan, the country is divided into two regions (vilojati), the Gorno-Badakhshan autonomous region (Pamir Mountains) and the capital city of Dushanbe. The status of autonomous region does not differ from that of other regions. Collectively, the regions are subdivided into 13 cities (shahr) and 38 rural districts (dehot), while Dushanbe is subdivided into 4 intra-city districts, each with their own state government. In addition, 13 cities and districts are under direct national subordination, without intermediation of regional state governments. Local self-government in Tajikistan is recognised by the Constitution of 1994. There are 368 local self-government bodies (jamoats) which are integrated into the territories of rural districts.

REGIONAL AND INTERMEDIATE LEVELS: Regional and district governments consist of executive (hukumat) and representative (majlis) bodies and both are headed by the same chair (rais). Majlis deputies are elected for a five-year term. According to legislation, the chairs of all subnational governments are appointed and can be dismissed by the president. The chair is accountable both to the superior executive authority and to the corresponding representative body. Each regional and district government develops its budget, which is to be approved by its representative body.

MUNICIPAL LEVEL: The first level of local self-government bodies (jamoats) is regulated by the national Law on Local Self-Government Bodies adopted in 2009. These publicly elected administrations in settlements and villages formally enjoy more autonomy from the central government, though currently they are not fully empowered to be budget holders. While there is a serious legislative gap in defining the specific functions of regions and cities/districts, legislative provisions for functions of jamoats are clearer and more concise. Moreover, the law lists a number of functions that might be delegated to jamoats by state authorities in accordance with law or on the basis of a contract between the parties concerned.

A second/sub-level is represented by intra-city and village communities (mahalla/guzar). These are recognised by the national Law on Community-Support Bodies adopted in 2008. These bodies build on historical traditions of supporting neighbouring families in various forms. They have no resources of their own and survive on donations and occasional financial aid from local governments. Official statistics on the number of these bodies or reports on their activities and spending are not publicly available.

The Tajik legislation does not provide a clear definition of functions and responsibilities of the different levels of subnational governments. Most of the competences of subnational governments appear to be both de jure and de facto “joint responsibilities” of the central and local governments. Responsibilities between local state governments and their subordinate cities/districts (intermediate level) are not delineated anywhere in national legislation. Local self-governments’ responsibilities are established by the law on Local Self-Government (Article 10 to 13): economics and finances, the rule of law, public order, defense, as well as social protection, community amenities, and municipal services (including maintenance of roads, streets, squares, cultural entities, water supply sources, local markets, cemeteries, waste picking). Besides their own functions, jamoats perform a number of responsibilities delegated by the central government (Article 14): civil status registration, army recruitment, collection of statistical data, tax collection. A number of functions can be delegated to them by regional governments, either by law or on a contractual basis. However, these delegated responsibilities are often not adequately funded.

Main responsibility sectors and sub-sectors
SECTORS AND SUB-SECTORS	Regions and intermediate levels	Municipal level
1. General public services (administration)	Local administration and support to local self-government bodies;Public buildings and facilities	Administration of self-government bodies; Public buildings and facilities; Marriage (delegated);Birth, notary (delegated); national statistics (delegated); tax collection (delegated)
2. Public order and safety	Firefighting services (jointly with the central government); Prevention and liquidation of natural disasters and accidents; Traffic lights and urban traffic signs	Assistance to state government in public order and safety;Army recruitment (delegated)
3. Economic affairs / transports	Regional, city and district roads; Intra- and inter-city transport;Agriculture and rural development	Support to municipal development
4. Environment protection	Parks and green areas; Waste management; Street cleaning; Sewerage	Street cleaning
5. Housing and community amenities	Construction/renovation of public facilities (jointly with the centralgovernment); Public lighting; Urban and land use planning; Urbanism	Distribution of drinking water
6. Health	Hospitals; Primary healthcare (medical centres); Preventive healthcare
7. Culture & Recreation	Regional and local museums; Cultural heritage; Sports; Libraries	Libraries
8. Education	Secondary, primary and pre-primary education
9. Social Welfare	Elderly and disabled people (benefits and services); Social carefor children and youth; Support services for families (jointly with the central government)	Support to state government in reducing unemploymentand registering of low-income families

Scope of fiscal data: 2 regions, the Autonomous region and districts and cities of national subordination

Ministry of Finance

Availability of fiscal data: Low

Quality/reliability of fiscal data: Low

GENERAL INTRODUCTION: The Constitution grants local state governments the powers to develop and implement their own budgets and to establish local fees, taxes and duties. However, all the parameters of local taxes are established in the Tax Code. While local budgets are adopted locally, in practice, revenue and expenditure amounts are negotiated annually with the Ministry of Finance. Accounts are published yearly but are unaudited (PEFA 2017). Subnational government finance is organised by the law on Public Finances of the Republic of Tajikistan (2011) and additional regulations on government functions. The legal framework determining spending responsibilities remains unclear. Financial bodies of regional and intermediate governments are an integral part of the central Ministry of Finance.

There are no taxes assigned to local self-governments, their spending is negotiated with district government and appears as a line in the district budget. The State Treasury plans to open individual accounts for local self-governments to collect their revenues and execute expenditure independently.

A number of strategic documents reveal the government’s intention to reform intergovernmental fiscal relations: (1) the National Development Strategy (2016) calls for the “delineation of functions and powers between tiers of government based on the principles of decentralisation”; (2) the Local Development Concept (2015) recognises the need for “developing an optimal model of intergovernmental fiscal relations by means of a phased delineation of powers, functions and sources of funding between central and subnational governments”; and (3) the Public Finance Management Strategy (2020) sets the task of introducing “amendments to the current legislation aimed at a clear delineation of expenditure powers between tiers of the budget system and assignment of revenue sources to subnational governments on a long-term basis.” It also plans for the “development and implementation of a methodology for calculating intergovernmental transfers to subnational governments based on a formula approach.” All these provisions are aligned with intergovernmental fiscal relations best practices, and if enacted, they are expected to drastically improve the functioning of the budget system in Tajikistan.

Subnational government expenditure by economic classification
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total expenditure	322	8.3%	28.3%	100.0%
Inc. current expenditure	260	6.7%	31.0%	80.9%
Compensation of employees	202	5.2%	78.5%	62.8%
Intermediate consumption	51	1.3%	15.0%	15.8%
Social expenditure	2	0.1%	1.5%	0.8%
Subsidies and current transfers	5	0.1%	17.6%	1.4%
Financial charges	0	0.0%	0.5%	0.1%
Others	0	0.0%	1.3%	0.1%
Incl. capital expenditure	61	1.6%	20.7%	19.1%
Capital transfers	-	-	-	-
Direct investment (or GFCF)	61	1.6%	20.7%	19.1%

EXPENDITURE: Subnational government expenditure represents a share of 28.3% of total public expenditure in Tajikistan, approximately USD 322 PPP per capita. Subnational governments are responsible for executing 80% of total wage bills in the public sector.

Per-capita expenditure varies across subnational governments due to the disparity in capital expenditure, which is concentrated in the city of Dushanbe. A lower per-capita disparity in current spending is the result of the introduction of per capita-funding norms in general education and primary healthcare. The composition of public spending by function significantly differs between Dushanbe and other subnational governments. Both regional and local governments enjoy little spending autonomy.

The central government defines wage rates for government employees and limits the number of local public servants. Since most labor-intensive functions (healthcare and education) are performed by subnational governments, staff expenditure represents nearly 60% of subnational government current expenditure, leaving limited funding for the purchase of goods and services. Spending of self-government bodies constitutes less than 20% of total subnational government expenditure.

DIRECT INVESTMENT: Only Dushanbe, the capital city, makes significant investments from its own resources. Dushanbe has the largest percentage of population living in multi-family apartment buildings. The city is therefore investing heavily in communal services (water supply, sewerage, power lines) as well as in roads (construction and maintenance) and public recreation facilities. Dushanbe’s capital expenditure is 26 times higher than the average of other regional governments.

In the rest of the country, investments in subnational infrastructure, including roads, are financed bby central governments funds. These funds are managed and disbursed by central government agencies. Centralised investments imply increased future recurrent spending by subnational governments to maintain and operate the assets. This further increases subnational government demand for fiscal assistance from the central government. Subnational governments are not motivated by public investments, as construction does not contribute to subnational government tax revenues, as contractors pay taxes exclusively to the central government.

The share of capital investment in subnational expenditure has declined from 24.1% in 2018 to 19.1% in 2020 (from 2.1% to 1.6% of GDP). This seems to be due to the need to preserve the level of current expenditure in view of the economic slowdown, as the investments of the central government have followed the same trend.

Subnational government expenditure by functional classification
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total expenditure by economic function	322	8.3%	-	100.0%
1. General public services	12	0.3%	20.3%	3.9%
2. Defence	2	0.1%	-	0.7%
3. Security and public order	4	0.1%	-	1.2%
4. Economic affairs/transports	8	0.2%	3.0%	2.6%
5. Environmental protection	-	-	-	-
6. Housing and community amenities	46	1.2%	70.3%	14.2%
7. Health	70	1.8%	59.3%	21.8%
8. Recreation, culture and religion	27	0.7%	60.8%	8.5%
9. Education	144	3.7%	71.2%	44.8%
10. Social protection	2	0.1%	1.4%	0.7%

In the reporting, expenses under the sections "Environmental protection" and "Housing and household improvement" are presented together. At the local level, these are mainly expenses in the field of housing and communal services.

Social sector spending accounts for the dominant share of subnational budgets. The central government imposes strict costing norms on subnational governments regarding specific spending items, such as per capita norms in general education and per capita norms in primary healthcare, wage rates for government employees, etc. Subnational governments account for the bulk of education and health expenditures, which represent, respectively, 71.2% and 59.3% of total public spending in corresponding categories and 44.8% and 21.8% of subnational government spending in 2020. These expenditures include both compensation of employees and operational costs of relevant institutions. In comparison, most of other subnational governments in Eurasian countries have limited or no responsibilities in these sectors. Per capita norms in education and primary healthcare are introduced by the central government (respectively, in 2010 and 2016) as mandates without allocation of adequate targeted funds from the central government. These mandates are to be covered out of own subnational government resources and are at risk to be underfunded if actual tax collections fall below budgeted amounts.

The next most important item of expenditure is housing and community amenities (70.3% of public spending and 14.2% of subnational spending). The composition of public spending by function significantly differs across subnational governments. The largest public programme in Dushanbe is in the housing and utility sector, while other subnational governments allocate major amounts of funding to education and healthcare sectors.

Culture and recreation (8.5%) and economic affairs and transport (2.6%) do not account for a significant share of subnational government expenditure. The share of general public services spending (3.9%) seems very low compared to other Eurasian countries. This is mostly due to the fact that wages of some subnational government divisions (primarily the finance bodies) are paid directly by the central government.

Subnational government revenue by category
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total revenue	328	8.5%	29.6%	100.0%
Tax revenue	265	6.9%	37.8%	80.7%
Grants and subsidies	51	1.3%	-	15.5%
Tariffs and fees	13	0.3%	-	3.8%
Income from assets	-	-	-	-
Other revenues	-	-	-	-

OVERALL DESCRIPTION: Local state governments’ revenues are established by the Tax Code and the annual State Budget acts. Tax revenues are the main source of revenue for subnational governments - more than 80%. Conversely, non-tax revenues represent only 3.8% of subnational government revenue. On average, grants and subsidies do not represent a significant portion of subnational government revenue (15.5%).

Amendments to the Law on Self-government Bodies in 2017 stipulated that local self-government bodies can retain a share of the real estate tax. However, the law did not specify the exact portion of the tax. A government resolution approved in 2017 guaranteed jamoats portions of 25-50% of the paid services of the registry offices located and operating in their territory. These provisions, though, have not been properly enacted.

The current system of revenue allocation between the different levels of government makes subnational government tax revenue unpredictable. Tax collection is centralised and carried out by the National Tax Committee, while the collection of property taxes from individuals and taxes from small businesses in rural areas is delegated to local self-governments. Actual revenue collection usually does not meet set targets (especially for CIT and VAT), thereby all subnational governments are expected to reduce their spending or request additional subsidies from the central government. Should revenue exceed the target, subnational governments are required by law to transfer 20% of the surplus to the central government.

Despite the importance of tax revenues for subnational governments, the Law on Public Finance does not provide for permanent arrangements for tax revenue sharing. Instead, the law stipulates that specific arrangements are to be determined each year by the Law on the Annual State Budget. The latter, which provides for allocations for major sources of revenue for subnational governments, is usually endorsed by Parliament in late November, leaving subnational governments with a very short budgeting timeframe before the new fiscal year.

TAX REVENUE: According to the Tax Code, only cities and districts have the authority to impose property tax. Local self-government bodies (jamoats) are deprived of this power. The property tax includes taxes on buildings and on land (although land in Tajikistan is not privatised). All parameters of the property tax are established by the Tax Code (objects of taxation, tax base, tax rates etc.). Thus, the only authority of city and district governments is formally to put this tax into effect by a local regulating act. The share of the property tax makes up 5% of total subnational government revenue and 6% of subnational government tax revenues. The law on self-government bodies prescribed that the proceeds of the property tax should be shared between district government and jamoats. Property taxes represented around USD 17 PPP per capita in 2020.

Local taxes also include the vehicle tax, and together, local taxes account for about 10% of subnational governments’ total tax revenues. The remaining amount is the regional share of national taxes, including PIT, CIT, VAT. Excise taxes, taxes on natural resources, small business tax and state duties and fines are completely retained by subnational governments. СIT accounts for the largest share of subnational government tax revenue (26.3%) or about USD 70 PPP per capita, spread asymmetrically across Tajikistan’s subnational governments. Next come PIT (19.4%) and VAT (18.3%). Together, shared taxes constitute 64% of total subnational government tax revenue.

The allocation of regional shares of national taxes appears to be the result of negotiations between central and local governments, since they differ from one subnational government to the next (and from year to year for the same subnational government). The central government is currently considering setting national tax sharing rates for a period of three years. Horizontal disparities in per capita tax revenue across subnational jurisdictions before tax sharing are significant. Per capita tax revenue generated in Dushanbe exceeds the tax revenue of poorest district of central subordination by a factor of 30. However, despite its current lack of transparency, tax sharing partially mitigates the large initial inequality.

Over the period 2015-2018, the central government has concentrated tax revenues in the central budget and reduced the subnational share of national taxes from 35.7% to 33.8%. This was mostly due to the reduction of central government tax revenues in GDP. Still, in 2019 and 2020 the central government increased the sharing rates for particular subnational governments which resulted in the increase of subnational share up to 36.6%. While the total share of major shared taxes in total subnational government revenue remained stable over the last years, the share of each particular shared tax has fluctuated quite significantly. Self-government tax revenue constitutes about 20% of total subnational government tax revenue, with property tax as the largest component (more than 50%) but a sharing rate that varies for each jamoat every fiscal year.

GRANTS AND SUBSIDIES: The Law on Public Finance defines the following types of intergovernmental fiscal transfers: general-purpose grants, targeted/earmarked grants, subsidies or matching grants (not currently used), individual grant to Dushanbe, and mutual settlements (transfers of funds between tiers of government besides transfers provided for in the annual State Budget Law). Earmarked grants were introduced in practice in 2017 and are aimed at funding the salaries of civil servants and employees of government institutions. In addition, a number of international donors provide grants directly to subnational governments. These are in-kind subsidies, not loans, which are often provided for investments in equipment and construction. The value of these subsidies is not reported in budget reports. There are no central government grants for investment purposes.

Over the last 10 years 10 to 12 subnational governments (including 2 regions, the others being districts of central subordination) were eligible for cash transfers from the central government. Currently the share of earmarked grants for wage subsidies dominates in transfers. Mutual settlements in 2020 increased to 20.6% (from 1.5% the previous year), and general-purpose transfers account for less than 1% of total grants. On average, intergovernmental transfers constitute about 15% of total subnational revenue, which is modest in the international context.

None of the intergovernmental transfers are allocated to subnational governments following the formal procedure. For each subnational government, the grant appears to be the difference between “negotiated expenditures” and “negotiated revenues” (in accordance with previously “negotiated” tax shares). Even the amounts of earmarked grants for wages do not correspond to the wage payments negotiated by subnational governments with the Ministry of Finance for the following fiscal year.

However, in its strategic documents, the national government has set itself the task of introducing a formula-based methodology for calculating intergovernmental transfers to subnational governments, while at the same time stating the objective of reducing the number of subsidised subnational governments.

OTHER REVENUE: Local state governments have the right to rent their properties and receive rents. Non-tax revenue (which includes income from assets) constitutes only a small share of subnational government revenues (3.8%). Moreover, all subnational governments are entitled to charge for services provided to citizens. However, there is no clear regulation on the list of paid services and their prices. Revenue from paid services are the property of the institution providing the service. Officially, the amount of these revenues represents a small share of local revenues. In practice, most of these revenues are still not officially registered. Subnational government also collect fees for driving licenses, for the registration of motor vehicles, agricultural vehicles and inland waterway vessels; annual fees for driving licenses; fees for registration and sale of real estate; and fees for placing outdoor advertising.

ⓘ No detailed data available for this country

FISCAL RULES: According to the budget balance rules, no subnational government can have a current budget deficit. Subnational governments may forecast a total deficit not exceeding 2% of their tax and non-tax revenues.

While the Law on Public Finance deprives subnational governments of borrowing rights, the Law on the Annual State Budget envisages balanced budgets only for the recurrent budgets of subnational governments and prescribes that their deficits must not to exceed 2% of their total revenues. These deficits must be covered by the over-collection of tax revenues and may only be used for investment purposes.

DEBT: Based on the borrowing framework, subnational governments cannot take out loans (Article 5 of the Law on State and State Guaranteed Borrowing).

TERRITORIAL MANAGEMENT OF THE CRISIS: The National Headquarters responsible for strengthening anti-epidemic measures was established at the end of March 2020. It is headed by the prime minister. The participation of subnational authorities is not reported.

The president instructed local government bodies to establish local headquarters to strengthen sanitary and preventive measures, as well as to create favourable conditions for vaccinating employees who belong to vulnerable groups.

EMERGENCY MEASURES TO COPE WITH THE CRISIS AT THE DIFFERENT LEVELS OF GOVERNMENT: In an attempt to offset the negative economic impact of the crisis, the central government postponed certain tax collections, increased health and social spending, and eased monetary policy.

The government amended the budget for 2020, significantly increasing spending on healthcare and social assistance to the population. Tax payments were deferred and regulated prices were raised, which supported the liquidity of companies and households. The government followed through on its promise to raise public sector salaries and pensions in September 2020.

To provide economic support to citizens, local authorities organised fairs for the sale of agricultural products and actively worked to prevent a serious food crisis.

Other anti-crisis measures have been introduced at subnational level. For example, Sughd regional budget in 2020 allocated TJS 3 million (~about USD 7 million PPP) from its own funds to support medical workers involved in the fight against COVID-19. Of this amount, a third was allocated to encourage local medical workers and the remaining two thirds were allocated to purchase special protective overalls for them.

In the Gorno-Badakhshan autonomous region, local people launched a fundraising campaign to support local doctors and patients. They used various online platforms and social networks to appeal to their compatriots and anyone who wanted to support their initiative. Resulting from this campaign, certain local hospitals received the necessary medical equipment and medicines.

IMPACTS OF THE CRISIS ON SUBNATIONAL GOVERNMENT FINANCE: Tajikistan is the poorest of the former Soviet Central Asian republics in terms of GDP per capita. Still, economic growth rates in Tajikistan have been the highest in the region in the last few years. Due to its rapid development Tajikistan appeared to be one of the few countries in the world to avoid a severe economic downturn in 2020. However, the COVID-19 crisis has had a significantly adverse impact on Tajikistan’s economy. Its GDP growth fell to 4.7% from 7.5% in 2019.

The pandemic has severely affected domestic population income and employment. Restrictions on labour mobility and economic activity at home and abroad resulted in lower migrant remittances, weaker consumer demand, and reduced investments. Although exports enjoyed a record global demand for gold, the domestic market collapsed. A growing share of the population reported reducing their food consumption, and the inability of previously returned migrants to travel abroad led to a significant increase in the unemployment rate. The healthcare system faced unprecedented pressure to accommodate a sudden influx of patients. International financial institutions and partner countries have rushed with financial and in-kind aid to help Tajikistan contain the pandemic’s impact.

In 2020 compared to 2019, local revenues and expenditures in nominal terms increased by about 5%. However, as a share of GDP, revenue declined from 8.7% in 2019 to 8.5% in 2020 and expenditure from 8.5% to 8.3%, respectively. Compared to 2019, CIT contracted from 2.1% to 1.8% of GDP (its share in total local tax revenues decreased from 29% to 26%), while VAT, retained by local governments, grew from 1.2% to 1.3% of GDP (its share in tax revenues raised from 16% to 18%). Non-tax revenues doubled from 0.15% to 0.32% of GDP. The volume of central government transfers increased only slightly compared to 2019 (from 1.2% to 1.3% of GDP). However, the composition of transfers changed significantly: general purpose transfers have shrunk to zero, while unpredictable and ad hoc mutual settlements grew from 4% to 26% of total transfers.

In 2020, the share of expenditure on education and healthcare together grew significantly from 55% to 67% of total local expenditures. It can be assumed that this increase was allowed by the reduction of local spending on defence and law and order. These had always appeared to be spending and competences imposed by the central government.

The central government introduced a number of temporary fiscal measures in response to the crisis, including: tax benefits for SMEs; postponing the increase in tariffs for electricity, water, irrigation, communications and utilities in order to reduce the cost of production for businesses, and prevent price increases for domestic products and inflation; tax holidays for the payment of real estate tax; reduction of PIT tax rate on deposits interest from 12% to 6%.

However, most of these measures were introduced at the cost of local budgets, as those payments constitute their fiscal resources.

ECONOMIC AND SOCIAL STIMULUS PLANS: In April 2021, the central government adopted the Medium-term Development Programme of the Republic of Tajikistan for 2021-2025. This document includes, among others, sections on regional and local development. The program envisages: strengthening strategic planning at the regional and local levels, taking into account the Sustainable Development Goals and their localisation; strengthening the legislative framework of local governments and self-government bodies to implement the principles of sustainable and digital development; promoting the development of small and medium-size cities; expanding housing construction, development of local roads, transports, engineering, communication and social infrastructure; increasing the access of the citizens to social and other urban infrastructure, communal and public services; expanding public-private partnership schemes in urban development, introducing digital and resource-saving technologies in the provision of social and communal services and public transport services; improving the solid waste management system in urban and rural areas. The programme provides that all interested parties will participate in its implementation; including the Parliament, the administration of the president, central and local governments, local self-governments, civil society, businesses and development partners. The financing of the programme will be largely supported by international donor organisations.