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Question 1
What is initiative budgeting (IB) and what is it for?

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IB is a set of diverse practice based on the citizens’ initiative to address issues of local importance with the direct participation of citizens in determining and selecting objects for spending budgetary funds, as well as subsequent monitoring of the implementation of selected projects.

At the same time, IB is a mechanism for determining priorities in spending budgetary funds with the participation of initiative groups of citizens.

Currently, in many countries, projects that meet the criteria for initiative budgeting are being implemented. The most important features include, in particular:

• participation of citizens at all stages of project implementation;

• distribution of funds of municipal and state budgets;

• regularity and annual repeatability of projects;

• public reporting on the implementation of projects.

Initiative budgeting is a part of the worldwide trend of increasing the scale of participation of territorial communities in determining the ways to develop their own settlements. In the EU countries, this phenomenon was called Community-led Development (CLD).

In each country, the involvement of citizens takes place in different ways, but everywhere the main goal is the participation of citizens in the decisionmaking process. This is especially important when decisions directly affect regional communities.

It is obvious that people are much more aware of the majority of problems of their settlements and, of course, the choice of citizens is more justified than the decision of the authorities. Unfortunately, the choice of authorities, without its discussion and approval by citizens, often leads to mutual rejection and growing hostility.

25 Questions on Initiative Budgeting: manual

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