Efficiency in Municipal Management: Participatory Budgeting and its Relationship with Public Projects in Rural Areas in Peru

Abstract

The Participatory Budget is a key tool in public management that seeks to improve transparency and efficiency in local projects. The objective of the study was to analyze the relationship between the Participatory Budget (PP) and the Public Investment Projects (PIP) in the Municipality of Anco Churcampa, Huancavelica, during the year 2020, to evaluate how citizen participation influences the effectiveness and efficiency of publicly funded projects. For this purpose, a quantitative correlational approach with a cross-sectional design was used. A structured questionnaire was applied to 42 participants, among whom were municipal authorities and representatives of civil society. The collected data were analyzed using Spearman's rank correlation coefficient, which allowed the association between the PP and PIP variables to be evaluated. The results showed a positive and significant correlation between the dimensions of the PP, such as preparation, consultation, coordination and formalization, and the perception of success in the PIP. It was observed that the average levels of perception in the PP corresponded with average levels in the perceived effectiveness of the PIPs, which underlines the importance of well-structured participatory management. In conclusion, the study highlights that the PP is a fundamental tool to improve the transparency and effectiveness of the PIPs, highlighting the need to strengthen citizen participation in decision-making to promote more equitable and sustainable local development.