Bìznes Inform (Apr 2020)

The Participation Budget as an Effective Instrument for the Development of Territorial Community, Example of the City of Lviv

  • Kruhliakova Vira V. ,
  • Zhovtiak Kateryna V.,
  • Kolisnyk Mariia I.

DOI
https://doi.org/10.32983/2222-4459-2020-4-370-376
Journal volume & issue
Vol. 4, no. 507
pp. 370 – 376

Abstract

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The article takes into consideration the essence and importance of public participation in the budget process. The participation budget is defined as one of the most effective instruments for the development of territorial communities. The history of the emergence of the participation budgeting in the world and its introduction in Ukraine is analyzed. The key points and principles on which the participation budget is based are considered. The main stages of implementation of the participation budget are allocated. The participation budget has been defined as one of the most effective means of interaction between the government and the public. It is defined how the participation budget contributes to the transparency of the budgetary process and enhancement of public awareness and engagement. The participation budget is a guarantee of trust between the government and the population. The article analyzes the impact of the introduction of the practice of the participation budgeting on various areas of public life, i.e., economic, social, political and cultural. It is pointed out the need for a systematic analysis of the indicators of public budgets and their dynamics from the moment of introduction of the idea of community participation in the budget process and up to the present day. The statistics of planning and implementation of public budgets on the example of the city of Lviv in 2016–2019 as one of the most successful in terms of community participation in the budget process is considered and analyzed. The specifics of planning, implementation and organization of public projects of the city of Lviv have been defined. The main advantages and disadvantages of the practice of involving the public in the budget process at the local level are identified. The need to improve the mechanism of planning and implementation of the participation budget is substantiated. The main problems arising during the planning and implementation phase of public projects are specified. Possible options for improving the practice of the participation budgeting in Ukraine are proposed.

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