Participatory Budgeting and Public Expenditure

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|Participatory BudgetING and public expenditure management training manual | | |

Contents
Principles and Approaches of Participatory Budgeting5
Introduction5
An innovation from the South5
Primarily a Brazilian phenomenon5
From definition to aim6
A well-structured process6
The Participation pyramid – an original structure7
Annual budget cycle7
Democratic, re-distributive and technical lines8
Multiple participatory models8
An evolving system9
Participation – a school of democracy9
The real-life advantages of participatory budgets10
INTRODUCTION TO PARTICIPATORY BUDGETING11
The Difference between Traditional and Participatory Budgeting14 Participatory Budgeting as an Innovative Local Governance Approach15 Participatory Budgeting and Public Participation16
Participatory Budgeting and Equity16
Participatory Budgeting and Effectiveness17
Participatory Budgeting and Accountability17
Participatory Budgeting and Security18
Additional Benefits of Participatory Budgeting19
Participatory Budgeting, Localization of the Millennium Development Goals24 BUDGET AND BUDGETING CONCEPTS28
Purpose of a Budget29
Budgets and Accountability31
Stages of the Traditional Budget Cycle32
The Administrative Process of the Traditional Budget Cycle34 Key Players in the Budgeting Process: The Case of South Africa35 THE PARTICIPATORY BUDGETING CYCLE38
KEY DIMENSIONS OF PARTICIPATORY BUDGETING46
The Role of Local Government in Participation49
The Financial Dimension51
CONDITIONS FOR PARTICIPATORY BUDGETING66
Interest of Civil Society Organizations and the Citizenry69 Shared Definition of the Rules on the Participatory Budgeting Process70 Will to Build the Capacity of the Population and the Municipal Officials71 The Medium Term Expenditure Framework (MTEF)73

Budget Monitoring and Expenditure Tracking82
INTRODUCTION82
Recurrent Revenue i.e. revenue generated from stable sources like82 IMPORTANCE OF GOVERNMENT BUDGET83
HOW TO ASSESS GOVERNMENT BUDGET84
PARTICIPATION IN THE BUDGET PROCESS84
BUDGET MONITORING84
The Executive85
The Legislature85
The Citizens85
WHY WE MONITOR GOVERNMENT BUDGET86
WHAT WE MONITOR IN GOVERNMENT BUDGET86
HOW WE MONITOR GOVERNMENT BUDGET87
QUALITIES OF A GOOD BUDGET MONITOR87
WHERE TO SOURCE INFORMATION ON BUDGET88
Uganda: the Budget and Medium Term Expenditure Framework89
List of References12

Principles and Approaches of Participatory Budgeting

Introduction

Participatory budgets were launched and implemented over 10 years ago in Brazil as part of the political renewal inspired by the Worker’s Party. The project takes on even greater importance in light of Lula’s recent election as the county’s new President.

Participatory budgets allow for joint management by municipal executive bodies and participatory pyramids made up of all social players. By launching them, municipal government pave the way for a new form of government based on popular participation and civic commitment, in which the civil society acts as an alternative power. Resulting intense discussion between elected representatives, civil servants and citizens, and more transparent management, may deeply modify municipal politics. Participatory budgets may also represent an interesting development for our western democracies, which often limit citizens to a uniquely electoral role.

Citizens in Porto Alegre, Belem and Santo Andre in Brazil and Villa El Salvador in Peru are beginning to wield power through the participatory process, which boosts their capacity to steer and control public finances. Participatory budgets...
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