№ 11/2019

Fìnansi Ukr. 2019 (11): 110–124https://doi.org/10.33763/finukr2019.11.110

BUDGET POLICY

KRYSOVATYY Andrij ¹, SYNYUTKA Nataliya ²

¹West Ukrainian National University, Research ID : http://www.researcherid.com/rid/H-5477-2017
OrcID ID : https://orcid.org/0000-0002-5850-8224
²Lviv Polytechnic National University
OrcID ID : https://orcid.org/0000-0002-4294-2149

Participatory budget as an element of digitalisation of Ukraine’s fiscal space

The main purpose of the research is the theoretical substantiation and analysis of participatory budgeting on the background of digital transformations of a fiscal space, the theory of public choice, evaluation of its advantages and disadvantages, suggestions for the improvement of use. It it proved that digital transformations stimulate the spread of participatory budgeting, which results in high quality articulation and aggregation of public interests, increasing the efficiency of budget expenditures, transparency of the budget process, the responsibility of officials for its implementation. The article presents the positives of this type of budget for providing public goods. In general, participatory budgeting can have significant positive consequences for the development of public finance and society, in particular increasing the share of financing investment projects in budget expenditures, reducing the inertia of society, involving marginalized social groups in budgeting processes, improving community awareness, enhancing tax compliance due to taxpayers' understanding of spending areas. Challenges impeding the implementation of participatory budgeting tools in territorial communities and cities of Ukraine are identified. According to the results of the study, recommendations that will contribute to fiscal efficiency of the public participation budget are substantiated, in particular: voting for budget participation only by taxpayers, property and land plots owners; voting exclusively in electronic form to avoid manipulation, etc. Digitization helps to identify the real demand of population for the public goods they need and aggregate public inquiries into social and economic decisions. In this way participatory budgeting is transformed from a manipulative political procedure into an effective mechanism for ensuring the efficiency of budget expenditures and the allocation of resources. In the long term, the public participation budget can restore the interconnection between taxation and public goods provision of local territories and help to increase tax payment and compliance.

Keywords:fiscal space, participatory budget, digitalisation, Tiebout hypothesis, public spending efficiency, aggregation of public interests, Clarke’s tax

JEL: H31, H41, H72

Krysovatyy A. . Participatory budget as an element of digitalisation of Ukraine’s fiscal space / A. . Krysovatyy, N. Synyutka // Фінанси України. - 2019. - № 11. - C. 110-124.

Article original in Ukrainian (pp. 110 - 124)

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