Scientific periodical

ISSN 2658-5332

Financial Journal Vol.13 No.2 2021

CONTENTS

Vladimir V. Vagin, Ekaterina S. Shugrina
The Role of Participatory Budgeting in Forming an Ecosystem of Civic Participation in State and Municipal Governance,
 p. 9-24

Abstract
The purpose of the article is to substantiate the ecosystem approach as a basis for building a model of citizen participation in state and municipal governance, manifested in the laws of the Russian Federation, strategic planning documents, and other regulations, as well as in participatory practices of budget decisions. The ecosystem of citizen participation in governance is an urgent need for the modern stage of development of civil society and the entire complex of state–civil relations in Russia. The creation of such an ecosystem can increase the efficiency of state and municipal governance, include citizens and civil society institutions in the process of selecting priorities for the actions of public authorities, and reduce the protest potential caused by the lack of a comprehensive toolkit for citizen participation in governance. Among the first steps toward the formation of this ecosystem is the development of a federal law on public participation in governance. This law should become the basis for the inclusion in sectoral legislation of provisions governing relations between public authorities and citizens directly involved in decision-making on state and municipal governance issues. An important role in the deployment of the ecosystem is played by the development and implementation of a set of measures aimed at including the issues of citizen participation in the activities of state programs and national projects of the Russian Federation, implemented at all levels of public authority. The article also defines the basic principles of the development of the civic participation ecosystem.
Keywords: participatory budgeting, economic ecosystem, ecosystem of civic participation, citizen engagement in governance, law on public participation
JEL: H72, R51, R58
For citation: Vagin V.V., Shugrina E.S. The Role of Participatory Budgeting in Forming an Ecosystem of Civic Participation in State and Municipal Governance. Financial Journal, 2021, vol. 13, no. 2, pp. 9–24 (In Russ.). https://doi.org/10.31107/2075-1990-2021-2-9-24.

In more detail ...

Giovanni Allegretti, Matteo Bassoli, Greta Colavolpe
On the Verge of Institutionalisation? Participatory Budgeting Evidence in Five Italian Regions, p. 25-45
Abstract
Over the past few years, Italy has been setting the stage for different democratic innovations, especially those that have been implemented at municipal (or sub-municipal) level in different parts of the country. The expansion of Participatory Budgeting has been a remarkable one, accompanied by the diffusion of regional laws that were adopted to promote a culture of more intense civic participation. Moving from an overview of the recent diffusion of Participatory Budgeting in different areas of the country, this article proposes a reflection on what kind of added value the existence of this legal provision has led to the promotion of participation at a regional level and what this may represent. The construction of the Italian branch of Participatory Budgeting’s World Atlas offers an opportunity to assess legal provisions’ contribution to the diffusion and enrootment of participatory practices, especially in smaller-scale municipalities. Through zooming into some cases (such as Sicily, Emilia Romagna, Apulia and Tuscany, or Lazio in the last few years) the authors argue that the formalisation of participatory practices into legal frameworks today is an important but not a sufficient factor that diffuses and enroots participatory culture in local territories, and that a supplement of monitoring structures and detailed studies would help make challenges and added values of regional law frameworks clearer.
Keywords: participatory budgeting, institutionalisation, regional laws, participation incentives, citizens engagement, public policies, and civic engagement
JEL: O35, K30, N44, L38
For citation: Allegretti G., Bassoli M., Colavolpe G. On the Verge of Institutionalisation? Participatory Budgeting Evidence in Five Italian Regions. Financial Journal, 2021, vol. 13, no. 2, pp. 25–45. https://doi.org/10.31107/2075-1990-2021-2-25-45.

In more detail ...

Tatiana I. Vinogradova
Participatory Budgeting as a Tool Contributing to the Achievement of the Sustainable Development Goals, p. 46-60
Abstract
The paper investigates the participatory budgeting phenomenon in how it may accelerate many of the Sustainable Development Goals (SDGs) and support governments in reaching targets of the 2030 Agenda. The article analyzes the links between public participation in the budget process and sustainable development, illustrates the difference between participatory budgeting and other forms of public participation, and highlights the main effects of participatory budgeting. Results emerged from the analysis are that participatory budgeting as an adaptive mechanism can be integrated into the national objectives for the localization of the 2030 Agenda; that as a small-scale tool it can become a mechanism for testing numerous innovative approaches to public services provision; and that the “sustainable community creation” effect is the most important contribution to the Sustainable Development Goals.
Keywords: participatory budgeting, public participation in the budget process, Sustainable Development Goals, Open Budget Index, voluntary national review
JEL: F53, F55, H72, Q01
For citation: Vinogradova T.I. Participatory Budgeting as a Tool Contributing to the Achievement of the Sustainable Development Goals. Financial Journal, 2021, vol. 13, no. 2, pp. 46–60 (In Russ.). https://doi.org/10.31107/2075-1990-2021-2-46-60.

In more detail ...

Natalia G. Lukyanova
Saint Petersburg Experience of Participatory Budgeting, p. 61-69
Abstract
The article is devoted to summarizing the experience of implementing participatory budgeting practices in Saint Petersburg over a five-year period as well as the role and forms of citizen involvement in budget decision-making. An innovative form of public discussion, through the participation of citizens in the work of the budget commission, allowed one not only to attract a significant number of citizens to solve the problems of the metropolis, but also to increase the efficiency of budget fund spending. Special attention is paid to the testing of a new type of public participation in the development of the urban environment, namely participatory design, one of the effects of which is the possibility of attracting extra-budgetary sources of funding. The practice of participatory design is already in demand among potential investors and has shown good results in projects aimed at the development and improvement of newly built-up areas. School participatory budgeting practices were successful as well, in which high school students were asked to work out projects not only for the development of school infrastructure, but also that of the territory of Saint Petersburg’s districts. The experience gained allowed us to identify the main disadvantages and advantages of different practices, which will be taken into account when scaling them. 
Keywords: participatory budgeting, Your Budget project, involvement of citizens in budget decisionmaking, budget commission, participatory design
JEL: H41, H72
For citation: Lukyanova N.G. Saint Petersburg Experience of Participatory Budgeting. Financial Journal, 2021, vol. 13, no. 2, pp. 61–69 (In Russ.). https://doi.org/2075-1990-2021-2-61-69.

In more detail ...

Elena M. Mrachek, Irina V. Valyushitskaya
The Role of Project Centers in the Development of Participatory Budgeting: The Practice of the Krasnoyarsk Territory, p. 70-82
Abstract
Over the past decade, the practice of participatory budgeting has been getting increasingly widespread in Russian regions, its implementation taking place through a variety of methods. Using the Project Center of the Krasnoyarsk Territory as an example, the article examines the experience of information, methodological and educational support of the Program to Support Local Initiatives. The authors describe the structure and development of the integrated support system as well as the approaches to the implementation of educational support, highlight the specific features of information and methodological support for program participants, and summarize the results of the implementation of the regional Program to Support Local Initiatives.
Keywords: participatory budgeting, project center, additional professional education, Program to Support Local Initiatives
JEL: H41, H72
For citation: Mrachek E.M., Valyushitskaya I.V. The Role of Project Centers in the Development of Participatory Budgeting: The Practice of the Krasnoyarsk Territory. Financial Journal, 2021, vol. 13, no. 2, pp. 70–82 (In Russ.). https://doi.org/10.31107/2075-1990-2021-2-70-82.

In more detail ...

Natalia G. Ivanova, Vitalii A. Fedosov
Goal Setting of Youth Practices of Participatory Budgeting, p. 83-92
Abstract
Participatory budgeting in the Russian Federation is experiencing a new round of development. The practices of participatory budgeting, which are implemented by state and local governments, are becoming more and more diverse. Some of them involve people who are not well-represented in standard practices, for example, people with disabilities, young people etc. The authors conduct a study of the development of participatory budgeting practices for young people, highlight their characteristic features, and summarize foreign and Russian experience. A key aspect of designing the practice of participatory budgeting is its goal setting. The article systematizes the goals of participatory budgeting practices for “adults” and, based on the available data, determines the priorities of goal setting for youth participatory budgeting practices. The authors substantiate the relationship between the practices of participatory budgeting for young people and programs to improve budget literacy. 
Keywords: youth practices of participatory budgeting, school practices of participatory budgeting, goal setting, budget literacy
JEL: H72, R50
For citation: Ivanova N.G., Fedosov V.A. Goal Setting of Youth Practices of Participatory Budgeting. Financial Journal, 2021, vol. 13, no. 2, pp. 83–92 (In Russ.). https://doi.org/10.31107/2075-1990-2021-2-83-92.

In more detail ...

Mikhail V. Milchakov
Implementation of Regional Development Priorities Under the Conditions of the COVID-19 Pandemic, p. 93-113
Abstract
Due to historical features and the heterogeneity of the economic landscape, the regions of Russia are characterized by significant disparities in the level of socioeconomic development. In order to manage regional development, a number of important strategic documents have been adopted, including the Spatial Development Strategy. The tasks of supporting problem regions and developing the largest agglomerations are articulated in these documents. In the context of the pandemic, new challenges have emerged related to slowing economic growth and budget constraints. The article examines the specifics of the formation of individual programs for the socioeconomic development of problem regions, as well as the situation of cities with more than 1 million inhabitants during the pandemic. The author presents proposals for improving the measures included in the Spatial Development Strategy.
Keywords: spatial development strategy, intergovernmental fiscal relations, intergovernmental transfers, national projects, regional budgets, agglomerations, individual programs, balanced development, interregional inequality, pandemic
JEL: H61, H72, H77, R11, R58, P25
For citation: Milchakov M.V., Implementation of Regional Development Priorities Under the Conditions of the COVID-19 Pandemic. Financial Journal, 2021, vol. 13, no. 2, pp. 93–113 (In Russ.). https://doi.org/10.31107/2075-1990-2021-2-93-113.

In more detail ...

Vladislav V. Bukharsky
Fiscal Decentralization and Incentives of Local Authorities in the Russian Federation, p. 114-129
Abstract
This article examines the impact of intraregional fiscal decentralization on fiscal incentives for local governments in the Russian Federation. It is expected that decentralization contributes to the economic development of territories through two channels: 1) a higher level of budgetary (tax) decentralization gives more opportunities to local authorities to realize the economic potential of the territory; 2) stable decentralization of revenue sources preserves incentives for local authorities to realize such opportunities. In comparison with the widespread approach to measuring these incentives in terms of gross regional product, the author uses indicators of entrepreneurship, the development of which is mostly within the competence of local authorities. As a measure and stability of decentralization, the norms for deducting revenues to local budgets are used. No clear and conclusive evidence of the impact of decentralization is found: due to the low financial security of subnational budgets overall, the transfer of standards can rather be understood as financial assistance to the lower budget, in particular because the size of the average transferred standard grows with the level of subsidies in the region. At the same time, there are certain positive results: the very fact of the transfer of the revenues levied in connection with the application of the simplified taxation system is accompanied by an increase in entrepreneurial activity in the region. A similar effect is exerted by the stability of the revenues on personal income tax and corporate property tax. In general, it can also be pointed out that local authorities have low indicators of the level and stability (rigidity) of budget decentralization.
Keywords: fiscal decentralization, hard budget constraints, soft budget constraints, fiscal incentives, local governments, entrepreneurship
JEL: H61, H70, H71
For citation: Bukharsky V.V. Fiscal Decentralization and Incentives of Local Authorities in the Russian Federation. Financial Journal, 2021, vol. 13, no. 2, pp. 114–129 (In Russ.). https://doi.org/10.31107/2075-1990-2021-2-114-129.

In more detail ...

Scientific periodical

ISSN 2658-5332