In Uzbekistan, the mahalla system is a small area that functions as a body of self-government of citizens. The article analyzes the criteria and factors associated with the comprehensive, broad (inclusive) development of this system. Based on the study of the experience of the Saikhunabad district, an organizational and economic model of inclusive development of the mahalla was formed.

The article presents current information, proposals and recommendations on the organization of the work of tax authorities in mahallas, its legal basis, development trends, current state, as well as the impact of the organization of the work of tax authorities in mahallas on increasing sources of revenue for the state and local budgets.

Households within the mahalla system occupy a special place in the economy of Uzbekistan. In recent years, the growth rate of agricultural production, produced by households within mahallas, has been impressive. In this regard, the article, using econometric methods, forecasts the prospects for the production of crop and livestock products in households.

This article deeply analyzes the issues of further improving the infrastructure of mahallas in Uzbekistan and provides suggestions and recommendations on this issue.