The distinctive features of this practice are the participation of citizens in the selection of priority projects, the implementation and monitoring of projects, co-financing.

Participatory budgeting works in several municipalities of the Leningrad, Vologda, and Kirov Regions. Unlike PPMI, this practice does not imply the co-financing of projects by citizens. Members of budget commissions selected by drawing lots among interested citizens discuss which decisions have a priority to be implemented.

People’s Budget and People’s Initiative (s) are programs initiated by the All-Russian Political Party “Edinaya Rossia” (United Russia) and the National Front (ONF) during the 2010–2011 elections. Dozens of Russian regions declared their participation. More than 80 billion rubles were allocated within the framework of these practices. Unfortunately, these practices did not develop in the following years, and most of the regional programs were closed.

Currently in Russia there is an active search for new practices of initiative budgeting, first of all, the practices of involving urban citizens in initiative budgeting.

Reference

Basic Model of Involvement in the Budgetary Process

Ladder of participation:

1. Passive participation.

2. Access to information.

3. Consultations.

4. Joint decision-making.

5. Initiation and control by those who receive the result from social changes.

6. Formation of self-motivation for action (the highest form of involvement).

From country to country, from region to region, the mechanisms for involving citizens in the budget process are somewhat different. In its most general form, the algorithm provides for the following stages:

• According to the decision of the regional government body, the amount of budgetary funds for the initiative budgeting program is determined.

• The design of the IB practice, its calendar cycle is determined, appropriate orders, regulations and resolutions are adopted. In rare cases, changes are made in the regional legislation.

• Public discussions are organized where citizens formulate and discuss ideas to solve the most pressing problems for them. In these discussions, citizens exchange opinions, formulate their own proposals and learn about other proposals. It is important for everyone to have an opportunity to express their views on the priorities of spending.

Then, with the participation of a consultant, there is a dropout of those ideas that do not correspond to formal criteria (minimum and maximum cost of project implementation, property issues, authorities).

Then the vote takes place, where from the remaining short list citizens select the most important ideas.

• With the support of consultants and representatives of the municipal government, initiative groups work on ideas with the largest number of votes casted, and prepare project documentation for them.

• Implementation of projects is provided with financing. In some practices of initiative budgeting, a contest is envisaged: not all projects put forward by citizens are provided with financing, but only those that score the most points according to the formulated criteria. Another feature is the co-financing of projects by citizens, the amount of which is determined by the citizens themselves at the same meeting.

• Under the standard state procurement procedure, contractors responsible for the practical implementation of projects are selected.

• Projects are implemented under the control of citizens.

The cost of initiative budgeting projects is much less than the cost of investment projects. It should be remembered that the main area of application of initiative budgeting in Russia is the solution of local issues.

Reference

Most practices of initiative budgeting introduce restrictions on the upper limit of the amount of state funding. For cities, it is 2 million rubles, for villages – up to 1 million rubles. At the same time, along with state funds for the implementation of projects, funds from municipalities, citizens and businesses are attracted.

The amount of co-financing of funds from these sources is not limited. In general, in the Russian Federation, co-financing reaches a third of project implementation costs. In the Stavropol Territory, Rodnikovskoye Village, Arzgir District, over 20 million rubles were co-financed from the funds of the municipality and business for the repair of the school sports hall.

The average cost of PPMI micro projects in the Tver Region is a little more than 700 thousand rubles. In 2016, the program as a whole in the region was allocated 165 million rubles.

Thus, the amount of subsidy for a separate initiative budgeting project depends on the design of the program adopted in the constituent territory of the Russian Federation.

Citizens who chose the initiative budgeting project and are involved in its development are also actively involved in monitoring the implementation of the project. At the same time, the works are put for competition in accordance with the provisions of the Federal Law No.44-FZ “On Contract System for the Procurement of Goods, Works, Services for the State and Municipal Needs” dated 05.04.2013 (as amended on 03.07.2016) or the Federal Law No.223-FZ “On Procurement of Goods, Works, and Services by Certain Types of Legal Entities” dated 18.07.2011 (as amended on 05.04.2016).

The law gives an opportunity to participate in the competition to a wide range of persons. A participant, who has collected the most points and, as a rule, has offered the least amount to fulfill the contract, starts work in accordance with the work schedule.

Thus, the implementation of works within the IB projects is carried out by the winner of the official competition held in accordance with the norms of federal legislation.

In the city of Porto Alegre, in some years, up to 40 % of the city budget was distributed through the practice of initiative budgeting. On average, at least 10 % are allocated to PB projects annually.

In Russia, regional practices of initiative budgeting rarely exceed 1 % of total budgetary expenditures. Exceptions are several regions. In 2016, the Yaroslavl Region started the implementation of the program “Develop the Region by Anniversary”, for which it was envisaged to allocate over 1.6 billion budgetary funds. This amount is almost 2 % of the regional budget. It is gratifying that most of the projects are implemented on the basis of decisions and participation of citizens.

It will be appropriate to draw attention to the fact that the minimum amount of the pilot program of a constituent territory of the Russian Federation should be above 20–30 million rubles. Otherwise, it is difficult to determine and assess the effects of initiative budgeting: projects are few, there are a large number of losers in the competition, and the costs of consulting projects are high.

Initially, projects involving citizens were mainly implemented in cities. In Latin America, most cities with over one million people have experience in participatory budgeting. In Europe, PB is also predominantly urban practice. Lisbon, Paris, Berlin – this is not a complete list of cities implementing PB projects.