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New Instruments for Implementing the Budget Policy of Development of Territories
Pelekhatyy A. O.

Pelekhatyy, Andriy O. (2020) “New Instruments for Implementing the Budget Policy of Development of Territories.” Business Inform 4:377–384.
https://doi.org/10.32983/2222-4459-2020-4-377-384

Section: Finance, Money Circulation and Credit

Article is written in Ukrainian
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UDC 336.14

Abstract:
The article is aimed at developing civil society by involving the inhabitants of territories in the budget process. The main problems that create the preconditions for alienating citizens from involvement in budget policy and slowing down the development of territories are defined. A conceptual model of participation budgeting for the development of territories based on the established principles, methods, instruments and objectives of application is proposed. It is specified that the main objective of the proposed model of participation budgeting is to involve citizens in budget processes and to form a common budget policy for the development of territories by the authorities and residents of these territories. The basic principles of the participation budgeting of the development of territories in the conditions of fiscal decentralization are determined as follows: publicity; compulsoriness; transparency; openness of procedures; inclusion; public participation; self-reliance; unity; complexness; economical effectiveness; targeted orientedness; innovativeness; manageability. It is proved that the process of forming local budgets on a participation basis involves: setting priorities for local expenditures by the residents of territories; choosing representatives of local communities to participate in the budget process; holding local and regional meetings to discuss and vote for priority expenses, which ultimately leads to the implementation of ideas that influence the quality of public services. The main objectives of the introduction of participation budgeting of development of territories are specified as follows: redistribution of financial resources; formation of a new type of relationship between administrative bodies and citizens; building up social connections and changing social interests; formation of an economic culture in the issues of formation and execution of budget; encouraging public activism. A mechanism for participation budgeting of the development of territories at the local and regional levels is developed. The sources of filling participation budgets and the conditions for selecting the projects that will be implemented at the expense of local budgets are identified. The basic conditions of participation budgeting at the local and regional levels are formed: efficient allocation of expenditures; the process of formation of budgets must be ongoing; existence of a development budget; ensuring the direct participation of community members in the formation of budget, direct voting for the implementation of a particular expenditure item. The positive effects of introduction of participation budget at the community and regional levels are generalized. Prospects for further research in this direction are the developments of regulatory legislation at the national level for the leveled conditions of participation budgeting in all the territories of the State.

Keywords: participation budgeting, development of territories, development budget, taxes, civil society, expenses, income.

Fig.: 2. Bibl.: 8.

Pelekhatyy Andriy O. – Candidate of Sciences (Economics), Associate Professor, Department of Economics and Public Administration, Ivan Franko National University of Lviv (1 Unіversytetska Str., Lvіv, 79001, Ukraine)
Email: [email protected]

List of references in article

Allegretti, G. “International experiences in Participatory Budgeting“. Centre for Social Studies, Coimbra University, Portugal, June 13, 2016. http://whatworksscotland.ac.uk/wp-content/uploads/2016/06/GA-Scotland-Presentation-13-Jun-2016-FINAL-shorter.pdf
Kyrylenko, O., and Chaikovska, I. “Perspektyvy zaprovadzhennia biudzhetu uchasti v Ukraini na osnovi zarubizhnoho dosvidu“ [Prospects for the Introduction of a Budget for Participation in Ukraine Based on Foreign Experience]. Visnyk Ternopilskoho natsionalnoho ekonomichnoho universytetu, no. 2 (2015): 86-100.
Lieberherr, F. “Participatory Budgets. A Tool for Participatory Democracy“. 2003. http://www.caledonia.org.uk/papers/Participatory_Budgets.doc
Vozniak, H. V., and Pelekhatyi, A. O. “Partysypatyvne biudzhetuvannia yak instrument realizatsii biudzhetnoi polityky rozvytku rehioniv Ukrainy“ [Participatory Budgeting as a Tool for Implementing the Budget Policy of Development of the Regions of Ukraine]. Ekonomichnyi chasopys-XXI, no. 167 (9-10) (2017): 53-56.
Rice, J. “Participatory Budgeting. Australia“. http://www.janetrice.com.au/files/Participatory%20Bud_geting.ppt
“Participatory budgeting“. The International Bank for Reconstruction and Development / The World Bank. 2007. http://siteresources.worldbank.org/PSGLP/Resources/ParticipatoryBudgeting.pdf
Sintomer, Y., Herzberg, C., and Rocke, A. “Participatory Budgeting in Europe: Potentials and Challenges“. International Journal of Urban and Regional Research, vol. 32.1 (2008): 167-168.
Kotina, H. M., Stepura, M. M., and Batiuta, A. Yu. “Alternatyvni tekhnolohii biudzhetnoho zabezpechennia terytorialnoho rozvytku: implementatsiia svitovoho dosvidu u vitchyznianu praktyku“ [Alternative Technologies of Budget Support of Territorial Development: Implementation of World Experience in Domestic Practice]. Investytsii: praktyka ta dosvid, no. 24 (2015): 84-88.

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