Improving the Regulation of Intergovernmental Fiscal Relations in the Kyrgyz Republic through E-Government Development: Insights from the BRICS+ Experience

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Introduction The financial economy of BRICS+ presents considerable scientific and practical interest as an object of study, since it plays a leading role in the de-dollarization of international settlements, ranks first in terms of international trade volume and GDP, and is characterized by the high efficiency of member states’ budgetary systems [1]. The foundation of these achievements lies in the intensive development of e-government within BRICS+. The Kyrgyz Republic actively cooperates with BRICS+ and is interested in adopting its advanced practices in regulating intergovernmental fiscal relations through the development of e-government. The importance of advancing the financial economy in the Kyrgyz Republic is explained by the need to rationalize expenditures across all levels of the national budgetary system, as well as to increase revenues in order to fully meet the needs of the country’s regulatory apparatus [2]. The relevance of BRICS+ experience for the Kyrgyz Republic is further highlighted by the fact that fiscal balance in BRICS+ member states is achieved through comprehensive budget financing and the successful implementation of planned national economic development programs (unlike their curtailment in many other countries), while at the same time avoiding a significant increase in the tax burden on economic actors (in contrast to practices in several other parts of the world) [3-5]. © Bidinov U.A., 2025 This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License https://creativecommons.org/licenses/by-nc/4.0/legalcode 18 WORLD ECONOMY BRICS+: Current Agenda, 2025, 1(1), 18-23 The Kyrgyz Republic is currently at an intermediate stage in the formation of its national e-government system, where learning from international experience allows it to avoid mistakes and maximize the benefits of this system. The existing literature identifies several key components of e-government: the strength of governmental institutions, as reflected in [6]; the progressiveness of e-government technologies, as noted in [7]; and the reliability of e-government data and infrastructure, as emphasized in [8]. At the same time, the significance of these components for the efficiency of intergovernmental fiscal regulation in the Kyrgyz Republic and in BRICS+ remains largely unexplored and undefined in the available literature, constituting a research gap. This circumstance has defined the purpose of the present study - namely, to develop scientific and practical recommendations for improving the regulation of intergovernmental fiscal relations in the Kyrgyz Republic through the development of e-government, drawing on the experience of BRICS+. Materials and Methods The variables examined in this article are statistical indicators from WIPO [9] that characterize the efficiency of intergovernmental fiscal regulation: stability of the budgetary and financial system (ERMO1), efficiency of the public administration of the financial economy (ERMO2), quality of financial economy regulation (ERMO3), and legitimacy of financial economy regulation (ERMO4). The first step of this study is to compare the efficiency of intergovernmental fiscal regulation and the level of e-government development (strength of public institutions - UREP1, technological progressiveness - UREP2, and reliability of data and infrastructure - UREP3, as assessed by Oxford Insights [10]) in the Kyrgyz Republic with the arithmetic mean for BRICS+ in 2025, based on the data presented in Table. Efficiency of Intergovernmental Fiscal Regulation and the Level of E-Government Development in the Kyrgyz Republic and BRICS+ in 2025, Scores 1-100 Financial economy Strength of e-government Institutions progres siveness of e-government Technologies reliability of e-government data and infrastructure Stability of the budgetary and financial system Efficiency of public administration in the financial economy Quality of financial economy regulation Legitimacy of financial economy regulation Brazil 74.51 44.78 78.38 56.0 28.6 36.0 36.5 Egypt 68.98 42.13 55.77 44.7 32.3 23.1 36.3 India 73.32 50.34 64.76 58.7 53.7 40.5 47.1 Indonesia 79.86 48.06 69.64 60.0 55.4 47.2 38.4 Iran 26.54 38.82 66.29 19.3 20.9 0.0 14.7 Kyrgyzstan 34.68 24.49 50.49 28.7 20.8 25.2 10.9 China 72.90 62.95 80.18 66.7 56.9 30.8 42.6 United Arab Emirates (UAE) 83.89 59.20 83.89 78.7 77.9 69.0 67.8 WORLD ECONOMY 19 Bidinov U.A. Improving the Regulation of Intergovernmental Fiscal Relations in the Kyrgyz Republic through E-Government Development: Insights from the BRICS+ Experience Financial economy Strength of e-government Institutions progres siveness of e-government Technologies reliability of e-government data and infrastructure Stability of the budgetary and financial system Efficiency of public administration in the financial economy Quality of financial economy regulation Legitimacy of financial economy regulation Russia 72.15 45.38 76.62 13.3 25.8 11.8 9.6 Ethiopia 51.46 21.57 41.98 28.0 24.5 16.9 26.0 South Africa 54.30 39.15 65.28 46.7 40.7 37.0 44.4 Source: compiled Urmatbek A. Bidinov based on data from WIPO and Oxford Insights. The second step of this study consists in regression modeling of the dependence of the efficiency of intergovernmental fiscal regulation (ERMO1-4) on the level of e-government development (UREP1-3) in the Kyrgyz Republic and BRICS+ in 2025. The third step is to determine the prospects for improving the regulation of intergovernmental fiscal relations in the Kyrgyz Republic by advancing its e-government system to the level of BRICS+. Results and Discussion The identified differences in the efficiency of intergovernmental fiscal regulation and the level of e-government development in 2025 between the Kyrgyz Republic and BRICS+ are shown in Figure 1. In 2025, BRICS+ outpaces the Kyrgyz Republic by 89.71% in the strength of e-government institutions, by 84.72% in the progressiveness of e-government technologies, by 35.12% in the reliability of e-government data and infrastructure, by 64.49% in the stability of the budgetary and financial system, by 100.34% Figure 1. Efficiency of Intergovernmental Fiscal Regulation and the Level of E-Government Development in 2025 Source: calculations performed and created by Urmatbek A. Bidinov. 20 WORLD ECONOMY BRICS+: Current Agenda, 2025, 1(1), 18-23 in the efficiency of public administration in the financial economy, by 23.93% in the quality of financial economy regulation, and by 233.39% in the legitimacy of financial economy regulation. The regression model of the dependence of the efficiency of intergovernmental fiscal regulation on the level of e-government development in the Kyrgyz Republic and BRICS+ in 2025 consists of the following four equations: ЭРМО1=5,22+0,40УРЭП1+1,33УРЭП2-0,64УРЭП3 (1) ЭРМО2=1,41+0,26УРЭП1+1,45УРЭП2-0,61УРЭП3 (2) ЭРМО3= -13,68+0,62УРЭП1+0,13УРЭП2-0,01УРЭП3 (3) ЭРМО4=5,78+0,36УРЭП1+1,07УРЭП2-0,61УРЭП3 (4) Equations (1)-(4) demonstrated that the efficiency of intergovernmental fiscal regulation in the Kyrgyz Republic and BRICS+ in 2025 increases with the strengthening of government institutions and the transition to more advanced e-government technologies, while e-government data and infrastructure make no significant contribution to this improvement. Based on these equations, the prospects for enhancing the regulation of intergovernmental fiscal relations in the Kyrgyz Republic, drawing on the BRICS+ experience, have been identified (Figure 2). Figure 2. Opportunities for Improving the Regulation of Intergovernmental Fiscal Relations in the Kyrgyz Republic Based on the BRICS+ Experience Source: calculations performed and created by Urmatbek A. Bidinov. As shown in Figure 2, by raising the level of development of the two key components of the e-government system (strength of government institutions and progressiveness of e-government technologies) to the BRICS+ benchmark, the Kyrgyz Republic could achieve improvements in the stability of its budgetary and financial system by 156.99%, the efficiency of public administration in the financial economy by 169.93%, the quality of financial economy regulation by 130.60%, and the legitimacy of financial economy regulation by 174.85%. WORLD ECONOMY 21 Bidinov U.A. Improving the Regulation of Intergovernmental Fiscal Relations in the Kyrgyz Republic through E-Government Development: Insights from the BRICS+ Experience The results obtained expand upon the existing literature [1-5] on the efficiency of intergovernmental fiscal regulation by clarifying the significance of e-government components in the Kyrgyz Republic and BRICS+. The analysis confirms the key role of the strength of government institutions (in line with [6]) and the progressiveness of e-government technologies (in line with [7]) in ensuring the efficiency of intergovernmental fiscal regulation in both the Kyrgyz Republic and BRICS+. At the same time, it refuted the earlier assumption [8] regarding the contribution of e-government data and infrastructure reliability to improving the efficiency of intergovernmental fiscal regulation in the Kyrgyz Republic and BRICS+. Conclusions The main results of this article are the quantitative measurement of the extent to which BRICS+ outpaces the Kyrgyz Republic in terms of the efficiency of intergovernmental fiscal regulation and the level of e-government development in 2025, as well as the construction of a model capturing the dependence of intergovernmental fiscal regulation efficiency on the level of e-government development in the Kyrgyz Republic and BRICS+ in 2025. The overall conclusion of the study is that the development of e-government, drawing on the BRICS+ experience, will enhance the regulation of intergovernmental fiscal relations in the Kyrgyz Republic. To achieve this, it is recommended to focus primarily on strengthening government institutions and transitioning to more advanced e-government technologies.

About the authors

Urmatbek A. Bidinov

Kyrgyz Economic University named after Musa Ryskulbekov

Author for correspondence.
Email: ubidinov@mail.ru
ORCID iD: 0009-0008-4001-8033

Project Coordinator for the Heat Supply Improvement Project (HSIP)

58 Togolok Moldo St, Bishkek, 720033, Kyrgyz Republic

References

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