Participatory Budgeting as a Mechanism for Enhancing Municipal Finance Efficiency

Abstract

The present study examines the experience of the implementation of proactive budgeting in Russia aimed at enhancing municipal finance efficiency. Aim. The study aims to examine the Russian and foreign experience of participatory budgeting, classify the functions and motives of the participants (for both the government and citizens), and identify strategies for the application of co-production in civil budgeting, with the purpose of enhancing the efficiency of local budgets. Tasks. The authors identify the essential features and specific aspects of the evolution of proactive budgets in the modern period; examine the impact of co-production and cooperation of citizens on ensuring the balance of local financial policy; analyze the experience of budget implementation for the population of the Russian regions and determine better means to optimize it. Methods. This study employs the institutional approach, the collective action theory, and the concept of political capabilities. Results. The study provides a generalized structure of the functions and motives of civilian involvement in the mechanism of participatory budgeting and proposes strategies for the co-production of public goods that would ensure the efficiency of local budgets. Conclusion. Examination of the experience of participatory budget implementation in Russia and foreign countries shows that civilian involvement is being replaced by cooperation, co-production, and a more direct role of the population in the allocation of municipal resources.