The purpose of the study is to examine the digitisation of the state system involving local executive bodies to identify effective strategies for engaging citizens in territorial development decision-making. The following methods were applied in the study: hermeneutic, statistical, structural-functional, and comparative methods. During the study, the main problems associated with the implementation of digital technologies in the territorial development system involving the country's citizens were examined, such as technological barriers, issues of confidentiality and data security, and uneven distribution of resources. This allowed formulating recommendations for problem resolution, namely, ensuring access to education, developing digital literacy among the population, devising effective measures to protect data, and guaranteeing the confidentiality of personal information. The paper also explores the prospects and threats to the economies of regions in the process of transitioning to a digital economy. Special attention is given to studying the indicators of the current state of digitisation in Kazakhstan, considering data from annual international ratings. The obtained research results can be used in the development and implementation of digital technologies in the territory management system at the international-regional level for the benefit of citizens.