Participatory Budgeting as a Factor in Increasing Trust in Government and the Efficiency of Local Finances

Tetyana Vitovshchyk and Svitlana Korzyk
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Tetyana Vitovshchyk: Academy of Recreational Technologies and Law, Lutsk, Ukraine
Svitlana Korzyk: Academy of Recreational Technologies and Law, Lutsk, Ukraine

Oblik i finansi, 2025, issue 4, 26-33

Abstract: Participatory budgeting is an effective tool for developing democracy, promoting transparency in public finance management, and enhancing accountability of government to citizens. Therefore, its implementation in Ukraine corresponds to modern trends in decentralisation of power and democratisation of society. The article aims to substantiate the implementation of successful foreign experience in participatory budgeting into Ukrainian practice as a tool for enhancing the efficiency of local finances in the context of decentralisation. The methodological basis of the study is a complex of systemic, analytical and empirical approaches that provide a comprehensive survey of participatory budgeting as a socio-economic and managerial phenomenon. The systemic approach in this study is fundamental, as the authors consider participatory budgeting a complex system that encompasses economic, social, legal, and managerial elements interconnected. The study's results show that modern models of participatory budgeting combine multilevelness, digitalisation and institutional stability. At the same time, the differences between them are due to the political system of the state, the level of development of local self-government, the degree of digitalisation, the behavioural characteristics of citizens, and the volume of financial resources. In Ukraine, the practice of participatory budgeting is at the stage of experimental implementation, and therefore, it requires adapting foreign models. An analysis of the experience of Latin American countries, the European Union and North America allowed us to identify the main areas of implementation of practical approaches in national practice. They include the institutionalisation of participatory budgeting, digitalisation, ensuring electronic participation in management, involving citizens in decision-making, compliance with budgetary fairness and funding priorities, performance assessment and monitoring, and utilisation of international cooperation and funding opportunities. Measures such as developing a legislative framework, integrating electronic platforms, introducing citizen training, and systematic monitoring of results can significantly enhance the efficiency of local finances and foster a culture of democratic governance.

Keywords: public participation; decentralisation; foreign experience; institutionalisation; participatory budgeting; public finances; digitalisation (search for similar items in EconPapers)
JEL-codes: D72 H74 J53 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:iaf:journl:y:2025:i:4:p:26-33

DOI: 10.33146/2518-1181-2025-4(110)-26-33

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