Participatory budgeting and its features: from Porto Alegre to modern Europe

The article deals with the features of participative budgeting as a relatively new experiment in the sphere of participative democracy. It's pointed out that this democratic form was initiated in 1989 in а Brazilian city Porto Alegre and then it was spread not only over Latin America but also over other continents. Special attention is paid to the countries of Europe where participative budgeting was implemented most actively. Positive features of participative budgeting as well as its possible disadvantages are analyzed.The author argues that participative budgeting being one of the forms of participative democracy remains at the same time closely tied to the institutions of representative democracy. The initiator of its implementation remains most often municipal executive power as a whole or its individual representatives and first of all heads of local administration.

Usefulness of the budget: the mediating effect of participative budgeting and budget-based evaluation and rewarding

PurposeThis paper contributes to budgeting-related literature by investigating whether the participation of operational managers in budgeting, and budget-based evaluations and the rewarding of operational managers, significantly mediate the relationship between budget use for operational management and the perceived usefulness of the budget.Design/methodology/approachThe paper is based on data gathered from a survey of Czech medium- and large-sized companies from the manufacturing sector. The hypothesised relationships are tested using partial least squares structural equation modelling (PLS-SEM).FindingsOverall usefulness of the budget, as perceived by principals (top managers), is positively influenced by the scope of budget use, but, more importantly, the positive mediating effects of participative budgeting and budget-based evaluation and rewarding on this relationship are significant and strong.Research limitations/implicationsThe subjective perceptions of respondents were investigated with the understanding that they may not represent actual situations in their organisations. Companies with well-functioning budgeting systems were more likely to take part in the research. Regarding satisfaction, the authors studied the perceived usefulness of the budget. Only medium- and large-sized manufacturing companies located in a post-communist country were analysed and generalisations should, therefore, be taken with caution.Practical implicationsThe results in the studied sample indicate that satisfaction with budgeting is positively correlated with the rewarding and evaluation of operational managers, and with enabling the participation of operational managers in preparing and updating their budgets.Originality/valueThis research contributes to prior literature on budgeting by investigating the mediating effects of the participation of operational managers in budgeting, and the budget-based evaluation and rewarding of operational managers on the perceived usefulness of the budget by principals in an integrated model using the PLS-SEM approach.

The Influence Of Organizational Commitment, Participative Budgeting, And Competence In Managerial Performance Of Village Government Management

The aims of this study is to know determine the effect of the influence of organizational commitment, participatory budgeting ,and competence on managerial performance of village goverment administrators. This research was conducted in 13 villages in Klungkung Regency. The respondents used were 65 people who were determined by the probability sampling method, namely cluster random sampling. The data analysis technique uses multiple linear regression tests. The results showed that organizational commitment, participatory budgeting and competence simultaneously had a significant positive effect on managerial performance of village government administrators. Partial organizational commitment has a positive effect on managerial performance. Participatory budgeting partially has a positive effect on managerial performance. Competence also partially has a positive effect on managerial performance. Keywords : Managerial performance, commitment, budgeting, competence.

PARTICIPATION BUDGET IN THE SYSTEM OF PUBLIC FINANCE

Introduction. The reform of public finances in Ukraine involves implementing measures to increase the openness and transparency of the budget system. Ensuring the transparency of the budget process and the participation of the population in its organization envisages timely and accurate disclosure of information on the use of budget funds, as well as the ability of the public to participate in the formation and implementation of the budget, which is indisputable sign of democracy in many countries around the world. Purpose. The purpose of the article is to study the issues of effective implementation of the participation budget in the context of decentralization, also the development of practical recommendations for improving the dialogue between local authorities and society on the basis of cooperation in the context of participative budgeting. Results. The role and place of the participation budget in the system of public finance in terms of financial decentralizations are justified. Foreign and domestic experience of introducing participatory budgeting in the field is generalized. The algorithm for implementation and implementation of participatory budgeting and recommendations for effective implementation of the budget for participation in the community are presented. Conclusions. The participation budget is an effective tool for interaction between government and society, which combines the principles of democracy and zransparency. Of course, the introduction of a budget for participation in the context of decentralization reform offers significant benefits. Particularly relevant is the introduction of the participation budget for newly formed united territorial communities. If previously small financially unprofitable communities were not able to use participatory budgeting in their territory, now, with voluntary unions, they are getting new financial opportunities for their development, using best practices in the participation budget in large and small cities