Fiscal effects of applying initiative budgeting methodology in public finance

Abstract

The subject of the research is the methodology and practice of initiative budgeting (the Russian term for participatory budgeting) as applied to taxation. The relevance of the study is explained by the fact that the experience accumulated in Russia allows us to speak about the productivity of the initiative budgeting methodology in relation to other areas of public finance. The initiative budgeting methodology is part of a more general theory of citizens’ participation in governance and budget decision-making, which is being formed in Russian and foreign studies. The article aims to study the emergence of fiscal effects of applying the methodology of initiative budgeting in public finance and to develop proposals on this basis aimed at finding reserves for increasing local budget revenues. To formulate conclusions and recommendations, the authors use methods such as content analysis of scientific publications on the development of participatory budgeting practices abroad and logical generalization. The study substantiates that one of the promising practices of initiative budgeting may be the participation of citizens in decision-making on the allocation of part of the expenditures of local budgets to co-finance projects of initiative budgeting. At the same time, additional positive effects appear in the form of increased motivation for collection and an overall increase in the volume of local taxes and fees. Thus, there is a productive integration of the initiative budgeting methodology and tax policy at the local level. The authors propose possible strategies for introducing an initiative budgeting experiment in Russian regions. The authors conclude that the initiative budgeting methodology allows creating ways to motivate local governments and citizens to increase local budget revenues. There is a prospect of expanding the scope of application of initiative budgeting tools to solve the financial problems of municipalities.

Keywords

• партисипаторное бюджетирование
• инициативное бюджетирование
• налогообложение
• собираемость налогов
• налоговые органы
• муниципальное образование