IMPROVING THE MECHANISM FOR FORMING LOCAL BUDGET REVENUES IN UZBEKISTAN

this article examines the current state of Uzbekistan's shadow economy, its influencing factors, and the role of electronic services in tax administration to mitigate its effects on local budget revenues. It analyzes existing challenges in tax collection through digital platforms and proposes enhancements to electronic tax services as a means to reduce informal activities, thereby broadening the tax base and increasing fiscal inflows to regional budgets. Furthermore, the study develops recommendations for perfecting the formation of local budget incomes by integrating advanced information technologies, fostering voluntary compliance among taxpayers, and ensuring seamless interagency data exchange to support sustainable regional economic development.