Abstract

The main goal of this study is to explore the issue of Participatory Budget in reference to its social and economic-political aspects. Assessment and classification of the implementation of new participatory democracy institutions is attempted with a view to fiscal issues. It also explores problems and weaknesses leading to non-implementation of such procedures in the vast majority of Municipalities in Greece. An overview of the Participatory Budget institution is attempted initially, as emerging from implementation at the international and European levels. Specifically, the Participatory Budget concept is defined, along with the goals it is called upon to serve, the forms it has assumed and its basic governing principles, as well as prerequisites for implementation. Collection, distribution and allocation of public resources are key policy-making functions and tools for any government. State budget, as a government policy promotion and implementation tool, directly affects national economy and the citizens’ well-being. However, fiscal policy-making processes, whether related to state revenue or expenditure, have always been a closed process, mainly involving just the engaging bodies as well as technical experts of appropriate experience. In view of the recently modified Law on Local Governments, the Government is committed to developing an open ecosystem that will resolve the problem of standardization of open expenditure and fiscal data for both revenue and expenditure as well as fiscal information on the part of public bodies, such as regional governments and municipalities. The aim is to allow access to public sector budget and expenditure data on the part of citizens who so far have had little opportunity to express their opinion on public expenditure. Participatory Budgeting is a tool to stimulate citizen participation at the local level, and under the new framework law, an improvement tool for open governance, which includes institutional provisions for the establishment of a permanent multi-stakeholder structure (government-civil society forum-engaging bodies’ forum). International interest in the benefits of boosting the transparency and openness of fiscal systems has been growing in recent years. In the past few years in particular, such mobilization for opening up fiscal procedures has also taken on institutional aspects with the promotion of international rules to enhance transparency as well as with the independently-assessed degree of openness of fiscal systems. Therefore, various international bodies and organizations, such as the International Monetary Fund (IMF), the Organization for Economic Co-operation and Development (OECD), the International Organization of Supreme Audit Institutions (INTOSAI) and the Inter-Parliamentary Union (IPU), have published directives and guidelines for governments to promote more extroverted fiscal processes but also to improve fiscal information disclosure and use. The Global Initiative for Fiscal Transparency (GIFT) , the “Transparency and Accountability Initiative” and the World Bank also move in the same direction of promoting and establishing global standards in the field of transparency, participation and accountability. Another significant international initiative in the field of transparency and encouraging citizen participation in policy making, including fiscal policy, is the establishment of the Open Government Partnership (OGP) in 2011. The Independent Reporting Mechanism (IRM) has recommended the following as part of “GREECE - 2016-2018 Mid Term Report”: “Regain trust in public institutions. Continue work in fiscal openness with a focus on citizen engagement, auditing, and public accountability.”

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