Municipal Budget Research Articles

Exploring legitimacy in a municipal budget decision in Switzerland: empirical insights into citizens' perceptions.

This study examines legitimacy in municipal budgeting decisions, focusing on input, throughput and output dimensions. Using data from four Swiss studies, we explore how citizens assess these dimensions across traditional and innovative decision-making processes and investigate the impact of different voting methods on legitimacy perceptions. Our findings reveal that in routine processes using traditional voting, legitimacy dimensions are considered collectively. Conversely, in innovative participatory budgeting, dimensions are judged separately, involving more active evaluation. Throughput legitimacy (perceived fairness) emerges as crucial in both contexts, while input and output legitimacy's importance varies by process type. The Method of Equal Shares voting system shifts focus towards procedural fairness, increases representation and is perceived as fairer than the traditional Greedy method. However, even fair processes cannot fully compensate for outcome dissatisfaction, highlighting the complex interplay of legitimacy dimensions. This research contributes to understanding legitimacy construction in municipal decision-making, offering insights into the relationship between voting methods and legitimacy perceptions. The findings have implications for policy-makers seeking to enhance the effectiveness and acceptance of budgeting processes. This article is part of the theme issue 'Co-creating the future: participatory cities and digital governance'.

The Dynamic Response of Municipal Budgets to Revenue Shocks

We study the fiscal and tax response to intergovernmental grants, exploiting quasi-experimental variation within Germany's fiscal equalization scheme triggered by census revisions of population counts. Municipal budgets do not adjust instantly. Instead, spending and investments adapt within five years to revenue gains, while the adjustment to losses is more rapid. Yet the long-run response is symmetric. The tax response is particularly slow, stretching over more than a decade. Well-known empirical anomalies such as the so-called flypaper effect may thus reflect a short-run phenomenon, while long-run fiscal behavior appears more consistent with standard theories of fiscal federalism. (JEL E62, H71, H72, H77, R51)

The influence of politicians' sex on political budget cycles: An empirical analysis of Spanish municipalities

AbstractDoes a politician's sex influence political budget cycles (PBCs)? We answer this question using a sample of Spanish municipalities from the Madrid region for the period 2010–2019. The Madrid region has a homogenous set of budget rules that allow consistent categorization of budget expenditure items as either “mandatory” or “non‐mandatory” public services. After differentiating between smaller and larger municipalities, gender influence is studied along two dimensions: the mayor's sex and the share of women in government. Our findings include, in regard to mandatory spending in smaller municipalities, that gender‐balanced governments induce PBCs. In larger municipalities, when the share of women in government is above 60%, electoral spending is increased by up to 10% of an average municipal budget for mandatory spending, and up to 2.2% for non‐mandatory. These findings are generally supported in a mixed‐gender close election analysis.

Predictors of older adults’ health behaviours to prevent COVID-19 transmission: a multilevel analysis

ObjectivesWhile older adults showed higher mortality during COVID-19 pandemic, protective behaviours (knowledge regarding coping with COVID-19 symptoms and preventive behaviours) were highlighted to be important to prevent the spread of...

Neoliberal urban segregation and property tax: A critical view of Santiago, Chile

Urban property taxes are primordial land value capture mechanisms that can potentially redistribute public income to underprivileged areas in a city. However, in Santiago, Chile, a city with considerable socio-spatial segregation correlated with significant disparities in municipal budgets, social welfare, and intergenerational reproduction of wealth, the property tax system is weak to address this issue effectively. This study analyses the potential redistributive capacity of property taxes in Greater Santiago, comparing the evolution of real estate surplus values with municipal budgets. These results show that a 2% increase in property taxes would suffice to equalize per capita municipal budgets, essential to redistribute social welfare. In Chiles’s neoliberal planning framework, we argue that weak property taxes are critical for the intergenerational reproduction of wealth and poverty in different municipalities. Property as capital is efficient for capturing unearned value in the long term and obtaining rental income, two mechanisms of inequality reproduction, as property accumulation is only feasible if it is not progressively taxed. In sum, this analysis of property taxes in Santiago contributes to the theoretical understanding of passive mechanisms of inequality reproduction in a neoliberal system and empirical support for a progressive increase of property taxes.

Employment and development levels in rural areas of the Russian Federation

The development of agro-industrial complex is important for ensuring national food security and national health. The development of rural areas is subject to the development of agriculture and local infrastructure, as well as the availability of various services. This study selected 15 indicators in 2021 to analyze the employment and development levels in rural areas of 71 regions of the Russian Federation using the analytical grouping method. The results indicated that 20 regions (Group 1) had the highest percentage of rural population (33.10%). The percentage of population engaged in agriculture had the highest value (12.40%) in 31 regions (Group 2). Moreover, 20 regions (Group 3) had the highest investments in fixed assets at the expense of municipal budget (11.80 USD/person). Increasing the investments in fixed assets carried out from the budget of the municipality can improve the employment level in rural areas. Then, we used cluster analysis to divide 14 regions of the Volga Federal District in the Russian Federation into 3 clusters. Cluster 1 covered Kirov Region and Republic of Mari El; Cluster 2 included Ulyanovsk Region, Saratov Region, Nizhny Novgorod Region, Perm Territory, Orenburg Region, Chuvash Region, and Republic of Mordovia; and Cluster 3 contained Republic of Tatarstan, Samara Region, Udmurtian Republic, Penza Region, and Republic of Bashkortostan. Results indicated that the 2 regions of Cluster 1 need to increase the availability of resources and natural gas and improve the investment attractiveness of rural areas. The 7 regions of Cluster 2 needed to develop infrastructure, public services, and agricultural production. We found the highest employment level in rural areas, the largest investments in fixed assets at the expense of municipal budget, the largest residential building area per 10,000 persons, and the largest individual residential building area in the 5 regions of Cluster 3. This study makes it possible to draw up a comprehensive regional development program and proves the need for the development of rural areas, which is especially important for the sustainable development of the Russian Federation.

Tax potential of municipalities as the basis of regional budgets

In the Russian Federation (hereinafter referred to as RF, Russia), which is a federal state with a three-level budget system, it is assumed that there is tax potential at all levels: federal, regional, and local. With the help of taxes, the financial basis of local governments is formed and the socio-economic development of municipalities is ensured. In developed countries, municipal budgets are formed mainly from the taxes assigned to them. In Russia, they continue to remain the most problematic link in the country’s budget system. The purpose of the article is to study the influence of the taxes assigned to local budgets on the formation of the tax potential of the municipalities. Objectives are the following: analysis and assessment of revenues of the Russian local budgets in dynamics, justification of directions for increasing the tax potential. The methodological basis of the research is founded on a systematic approach, within which the following methods have been used: analysis and synthesis, generalisation, grouping, tabular method, etc. The research has found that over the past years, with the introduction of the Tax Code of the RF, problems of insufficient tax and non-tax revenues remain for most municipalities, low level of the tax potential and predominance of interbudgetary transfers in their budgets are current. Due to the increasing centralisation of the tax revenues, the degree of dependence of the municipalities on the federal centre is high. Without actually enhancing the tax potential of the municipalities, the development of the regional economy is impossible. The re -search results can be used in practice when developing economic policy for municipal development.

Understaffed and beleaguered: a national survey of chiefs of police about the post-George Floyd era

PurposeThe 2020 murder of George Floyd resulted in challenges to policing in the United States of America, but little is known about how police chiefs perceive them. At the same time, chiefs of police wield great influence over public perceptions of crime and disorder, the state of their profession, the laws and policies that govern the conduct of police officers and municipal public safety budgets. It is therefore critical to understand how police perceive the changes to their profession post-Floyd.Design/methodology/approachThis study surveyed a randomly selected national sample of 276 municipal chiefs of police. Items probed resignations, recruitment, efforts to defund departments, community support, officer morale, suspects’ likelihood of obeying lawful orders and career risks that could inhibit proactive police work. It examined associations between perceptions and Census Bureau region, length of tenure as chief, size of police department, population served and the urban or rural designation of the jurisdiction.FindingsChiefs overwhelmingly reported recruiting qualified candidates had become much harder, and the present risks of proactive police work encourage inaction. Chiefs of agencies in the Northeast perceived more challenges than those in the South. Respondents with more years of experience were less likely to perceive the current situation as dire. Approximately 13.5% reported an attempt to defund their department, 56.8% of which yielded some success. Our study suggests an increase in the number and scope of challenges perceived by chiefs of police. Results vary by region and police chief years of experience.Originality/valueThis study provides researchers and practitioners with the perspectives of chiefs about the post-Floyd era that influence their decisions, policies and initiatives.

Indigenous Knowledge Systems of Solid Waste Management in Bushbuckridge Rural Communities, South Africa

Indigenous knowledge systems related to solid waste management in economically marginalized communities have been largely overlooked in the scientific literature, even though the indigenous communities of developing nations struggling to manage solid waste rely on these practices. It is startling that indigenous solid waste management practices are scarcely documented in the scientific literature despite their position as potential alternative disposal methods. This gap persists amid limited municipal budgets, inadequate waste collection services, and poor infrastructure in economically marginalized indigenous rural communities in developing nations. Subsequently, in the discipline of solid waste management, this obstacle impedes the recognition and inclusion of indigenous waste management practices into integrated waste management plans. As a result, this causes a delay in their progress or elevation to the same level of credibility as mainstream scientific knowledge. In the process, this relegates the waste management practices of indigenous communities to the background. Against this background, the current study sought to investigate the indigenous solid waste management practices of rural communities in Bushbuckridge Local Municipality. As such, ten cases that captured the spatial cultural diversity of indigenous communities’ practices across Bushbuckridge Local Municipality (BLM) were selected for sampling. Data were collected using ethnographic research methods. Data analysis was carried out using the thematic analysis approach. Inductive logic was used in the interpretation of the current study results. The results of the current study indicate that indigenous communities of Bushbuckridge Local Municipality, in the absence of formal waste management services from the local authority, resort to an indigenous knowledge system to manage solid waste. Waste burning (100%), open-air dumping (100%), and backyard pits (90%) are some of the indigenous waste management practices espoused by the rural communities of BLM. The similarity in practices was corroborated by statistical inferences that revealed that between BLM communities, the amount of indigenous waste management practices is not significant (p > 0.05). However, there are concerns that despite the sustainability aspect associated with recycling (<25%) practices, these disposal methods are not common in the rural communities of BLM. This is a setback for an indigenous knowledge system that is supposed to advance environmental sustainability practices.

Latvian municipal budget expenditures on transport infrastructure and production in the context of improving the local economy

The article aims to study Latvian municipal budget expenditures on transport infrastructure and production in the context of improving the local economy. The authors hypothesize that the comparative priority of municipal budget expenditures on two items is determined by the state of the local economy; in municipalities with a more developed economy it is ‘transport’ rather than ‘production’ budget expenses that are more likely to improve the local economy, and in municipalities with a less developed economy – vice versa. The authors tested the hypothesis based on data for 2021 and 2022 (the time after the reform of the territorial-administrative structure of Latvia) for 43 Latvian municipalities using various methods of statistical analysis. The results show that the comparative priorities in Latvian municipal budget expenditures are determined not by the state of the local economy, but rather by the geographical (or geopolitical/geoeconomical) location of the municipality. As a result of this, Latvian municipalities are grouped into territorial clusters, using the agglomeration effect from the concentration of transport infrastructure or production. Over the past year, there has been a tendency towards ‘transport-production’ economic restructuring of the territory of Latvia, the reasons for which may be geopolitical situation in the Eastern Europe.

Что удалось сделать в сельском Татарстане за десять лет реализации системы самообложения населения

The budget deficit in municipalities of the Republic of Tatarstan forces local authorities to search for additional sources of funding to solve the problems of rural settlements. One of the ways was the participation of rural municipalities in the development of a system of self-taxation for citizens. It has been implemented in Tatarstan since 2013. The article sets the task of assessing the effects of the self-taxation system in rural settlements of the republic, accumulated over 10 years of its operation. By analyzing the legislative framework of the Russian Federation and the Republic of Tatarstan, the author reveals the basic concepts and provisions used in the system of self-taxation of citizens. Using interviews he conducted in municipalities of the Republic of Tatarstan with heads, deputies, and activists of rural settlements, the experience of using and features of public participation in the self-taxation system over the past ten years was examined. It was revealed that the results of the implementation of the self-taxation system are expressed in an increased level of trust in it on the part of villagers, in almost one hundred percent collection of contributions, in the involvement of village residents in the formation of municipal budget plans, in increasing the civic responsibility of representatives of rural communities of Tatarstan. The “external” effect of the self-taxation system is expressed in the number of solved problems of local importance: repair and construction of rural roads, water supply, street lighting, improvement of cemeteries, monuments and obelisks, sites for garbage containers, sidewalks, embankments, springs, parks and public gardens. This list of work of conducted works, which is far from complete, using the villagers’ self-taxation system and through co-financing from the government bodies of Tatarstan, has significantly increased the level and quality of rural life in the republic.

Willingness to Pay For Solid Waste Management in Residential Condominiums: A Case Study With A Focus on the Financial Sustainability of the Municipal Budget of Vitória-ES

Objective: Evaluate the willingness to pay (WTP) for Domestic Solid Waste management services in residential buildings in Vitória-ES, as well as to estimate their financial impact within the Solid Waste Management (SWM). Theoretical Framework: The demand for the universalization of SWM services compromises the municipal budget, and it is essential to evaluate new charging strategies to guarantee economic and financial sustainability. Method: Through the application of a questionnaire, the Contingent Valuation Method (CVM) was used, as well as a case study in the city of Vitória/ES. Results and Discussion: 58% of residents were willing to pay for SWM services, with an average monthly value of US$5.95 per household unit and stated that promoting information about the service would promote an 48% increase in this value. If classified as large generators, the transfer of responsibility for waste management in condominiums with more than 46 apartments, could relieve almost 19% of the entire cost of SWM services in the city of Vitória. Research Implications: It is evident the need to improve SWM charging policies for large generators, such as residential buildings, which can consider political and regulatory aspects, the WTP of the target audience, as well as information dissemination and social mobilization. Originality/Value: The research results contribute to expanding the modalities of charging policies for SWM services, with the classification of residential condominiums as large generators.

Assessing Factor Influence on Interbudgetary Transfers Income to Municipal Budgets

The article proposes an approach to studying and assessing the influence of factors on the volume of interbudgetary transfers income to municipal budgets. The relevance of the work is predetermined by the need to find ways to increase the replenishment of municipal budgets through the means of influence available for municipalities in order to fulfill their obligations and further territorial progress, including due to the unstable economic situation. Municipalities in Russia are in conditions of high dependence on incomes from higher-level budgets due to limited opportunities to strengthen their own revenue base, needing to attract as much gratuitous revenue as possible to their budgets. However, the aspects that have the greatest impact on the growth of intergovernmental transfers to the budget change over time and require elaboration. The aim of the work is to identify influencing factors that have a positive effect on increasing the incomes of interbudgetary transfers to municipal budgets, as well as to establish the degree of their influence on the volume of financial assistance provided. The study was carried out using industry-wide methods of system analysis with using statistical tools; the objects of the study were municipalities of the Samara region. The revenues of municipal budgets were analyzed, including to identify emerging trends. In addition, an assessment of factors and the degree of their influence on increasing the revenue base of municipalities in terms of gratuitous revenues from the subfederal level was carried out on the basis of correlation and regression analysis, including a dynamic comparison of the calculated models based on the results of 2012 and 2022. The key factors that have the greatest impact on the replenishment of municipal budgets through interbudgetary transfers have been identified, which has become an element of work’s scientific novelty. The results of the study can be used in the development of municipal policy in the field of interbudgetary relations, as well as become the basis for further study on a national scale.

Assessing Factor Influence on Interbudgetary Transfers Income to Municipal Budgets.

The article proposes an approach to studying and assessing the influence of factors on the volume of interbudgetary transfers income to municipal budgets. The relevance of the work is predetermined by the need to find ways to increase the replenishment of municipal budgets through the means of influence available for municipalities in order to fulfill their obligations and further territorial progress, including due to the unstable economic situation. Municipalities in Russia are in conditions of high dependence on incomes from higher-level budgets due to limited opportunities to strengthen their own revenue base, needing to attract as much gratuitous revenue as possible to their budgets. However, the aspects that have the greatest impact on the growth of intergovernmental transfers to the budget change over time and require elaboration. The aim of the work is to identify influencing factors that have a positive effect on increasing the incomes of interbudgetary transfers to municipal budgets, as well as to establish the degree of their influence on the volume of financial assistance provided. The study was carried out using industry-wide methods of system analysis with using statistical tools; the objects of the study were municipalities of the Samara region. The revenues of municipal budgets were analyzed, including to identify emerging trends. In addition, an assessment of factors and the degree of their influence on increasing the revenue base of municipalities in terms of gratuitous revenues from the subfederal level was carried out on the basis of correlation and regression analysis, including a dynamic comparison of the calculated models based on the results of 2012 and 2022. The key factors that have the greatest impact on the replenishment of municipal budgets through interbudgetary transfers have been identified, which has become an element of work’s scientific novelty. The results of the study can be used in the development of municipal policy in the field of interbudgetary relations, as well as become the basis for further study on a national scale.

FISCAL RULES AT THE LOCAL LEVEL ARE A CONDITION FOR STABLE PUBLIC FINANCES IN THE REPUBLIC OF SRPSKA

<p><i>The fiscal position of municipalities and cities has a great influence on the overall fiscal position of the Republic of Srpska. Bearing in mind that according to the Law on the Budget System, the budget system of the Republika Srpska consists of the budget of the Republic, the budget of municipalities and cities and the financial plans of the funds, then it is clear that the realization of the budget of municipalities and cities with a high budget deficit represents a great risk for excessive realization of the deficit at the level of the Republic . Republika Srpska does not have defined fiscal rules for local self-government units. However, bearing in mind that according to the Law on Fiscal Responsibility in the Republic of Srpska, the consolidated budget deficit is determined as the sum of consolidated budget deficits, the budget of the Republic, the budget of municipalities and cities, and the budget of funds, it is clear that the realization of an excessive deficit of municipalities and cities affects the fiscal rule on deficit at the level of Republika Srpska. The results of the analysis in this paper indicate the need to introduce fiscal rules for local self-government units. The fiscal stability of local self-government units has a positive effect on the overall fiscal stability of the Republic, especially if mechanisms are introduced to suppress the excessive deficit of local self-government units.</i></p>

Development of an economic and information system for the optimization of city traffic flows

The paper presents a critical analysis of current approaches to reorganizing urban transportation routes. It proposes addressing the problem of optimizing traffic flows as a multidimensional issue encompassing social and economic aspects. An economic-information model for continuous monitoring and optimization of urban traffic flow configurations based on the criterion of congestion wait time has been developed. The calculation of the economic consequences of such waiting time is proposed. The developed system has practical significance and can be applied in managing traffic flows as an economic subsystem of the city within its socio-economic system. Urban transportation infrastructure in Ukraine faces significant challenges due to social changes, including increasing passenger flow, extended waiting times, and the need to adhere to modern urban planning standards. Current trends involve redistributing street and road space based on principles of equal access and safety. This includes pilot actions, intermediate reconstruction, and comprehensive reorganization of urban space and transportation routes. Proposed methods for enhancing transportation infrastructure include improving government management, implementing proactive management strategies, executing investment projects, establishing public-private partnerships, temporarily reducing tax burdens, developing comprehensive solutions for consumers, and optimizing transportation pricing. These strategies aim to address the pressing problems in Ukraine's transport sector and facilitate sustainable development and growth. The study focuses on the financing of infrastructural projects in Dnipro city through the municipal budget. It proposes integrating economic-mathematical models into a unified economic-information system for optimizing traffic flows, allowing for continuous monitoring and improvement. This system emphasizes minimizing congestion wait times and can adapt to dynamic changes in traffic patterns, ensuring efficient and effective urban traffic management. By implementing this system, the city can enhance its transportation network, contributing to overall economic efficiency and better quality of life for its residents.

IUDP: Prospects and Challenges for Implementation in Nepal: A Case Study of Godawari Municipality

The IUDP represents Nepal's latest comprehensive municipal-level urban planning approach, geared towards providing inclusive and sustainable development for new municipalities. However, the successful implementation of IUDP faces various challenges that demand long-term vision and guidance from municipal authorities. This study delves into the prospects and challenges of IUDP implementation in the context of Godawari Municipality by studying the selection and prioritization of projects, implementation framework of IUDP, municipal budget, and exploration of implementation issues and the probable solutions. The municipality faces significant challenges in IUDP project implementation, including legal constraints, transparency issues, limited budget, political willpower, lack of technical support, complexities in land ownership, road standard compliance, community ownership, and shortage of technical experts, all highlighting the necessity of a specific implementation framework. Addressing critical challenges through formalizing ward committees, clear project selection guidelines, streamlined procedures, financial accountability, strengthened planning commission, cost-effective expert consultants, community ownership, sustainable forest conservation norms, and enhanced staff capacity is essential for successful and sustainable IUDP implementation in Godawari Municipality, contributing to holistic regional development. The prospects of IUDP implementation in Godawari Municipality show promise with relevant projects, investment planning, collaborative efforts, and proposed solutions, along with a dedicated team and budget allocation that enhance the likelihood of successful and sustainable development.

To assess Resilience of Russian cities under international sanctions and the consequences of COVID-19: a sociological study

The paper presents the results of in-depth interviews and a questionnaire survey of the Russian cites administration representatives about cities resilience under the sanctions pressure and COVID-19. The survey was conducted by the Center for Territorial Changes and Urban Development of IPEI RANEPA in March-May 2023, it was attended by representatives of the administration of more than 50 cities of the Russian Federation. We found overall situation as stable: social programs are being implemented in full, unemployment is decreasing, construction of municipal facilities continues, problems with failures in the supply of spare parts, equipment and components are being solved. At the same time, the sanctions have affected the urban economy in completely different ways: while in some cities show significant negative effect, in others the impact of sanctions is insignificant. Cites face number of new challenges: disruption of supply chains, refusal to supply paid equipment, inability to find analogues of imported equipment with the necessary characteristics, rising prices for spare parts. components and construction materials, the rupture of established sales channels to unfriendly countries, a drop in municipal budget revenues, etc. The heads of the city administration work overtime to solve emerging problems, organize interaction between enterprises, establish and deepen business contacts with friendly countries, put forward proposals to improve the situation at the federal level. New tasks successfully solved, although it requires serious efforts. To respond to new challenges, we need a new, more decentralized and local-oriented style of public administration, a process of well-established feedback.

Insights into the development of a landslide early warning system prototype in an informal settlement: the case of Bello Oriente in Medellín, Colombia

Abstract. The global number of vulnerable citizens in areas of landslide risk is expected to increase due to the twin forces of climate change and growing urbanization. Self-constructed or informal settlements are frequently built in hazardous terrain such as on landslide-prone slopes. They are characterized by high dynamics of growth, simple construction methods and strong social dynamics and are exposed to unsteady political approaches. Landslide early warning systems (LEWSs) can contribute to decreasing their vulnerability, but precise, affordable and culturally integrated LEWSs need to be further developed. In this paper, we present a 4-year living-lab research project called Inform@Risk that aimed to develop a LEWS prototype in the neighborhood of Bello Oriente, located on the urban–rural border of Medellín, Colombia. Its research team is composed of landscape architects, geo-engineers, and remote sensing and geo-informatics experts. The research team collaborated with a multitude of stakeholders: civil society, private enterprises, non-governmental agencies and various branches of government. A preliminary LEWS with the last functionalities still to be developed has been designed, implemented and handed over to the government. It has entered a test and calibration phase (i.e., warning-threshold development, procedures for warning and alert dissemination through the sensor system), which is on hold due to legal constraints. Our first findings indicate that the integrative development of technical aspects of a LEWS in informal settlements can be challenging, albeit manageable, whereas the level of social and political support is beyond the control of the designer. Steady political will is needed to increase technical capacities and funding of the operation and maintenance of an increased amount of monitoring equipment. Social outreach has to be continuous in order to inform, train, maintain the trust and increase the self-help capacities of the often rapidly changing population of an informal settlement. Legal requirements for a transfer of academic research projects to municipal authorities have to be clear from the start. Satisfying replacement housing options for the case of evacuation have to be in place in order to not lose the overall acceptance of the LEWS. As political will and municipal budgets can vary, a resilient LEWS for informal settlements has to achieve sufficient social and technical redundancy to maintain basic functionality even in a reduced-governmental-support scenario.

PUBLIC EVENTS AS A MEAN OF DESTINATION PROMOTION

Tourism is often considered as a strategic economic development priority not only in areas with high numbers of domestic and international visitors but also in more remote and rural areas. Their ability to attract visitors is often limited by the number and the range of available infrastructure and other tangible and intangible resources. Even defined as development priority, tourism promotion is often underfinanced due to municipality budget priorities and often short-term focus whereas tourism promotion requires long term approaches. Less developed areas are also lacking overall understanding of various tourism impact forms and public officers face challenges communicating tourism marketing spendings to the public. These trends fit under the category of public events as a means of tourism promotion. Two cities qualifying as regional tourism destinations have prioritised public events as tourism promotion priorities. The aim of the research is to explore perception of public events as tourism destination promotion tools in regional tourism destinations. Research is a case study of public events as a means of tourism destination promotion in Bauska and Talsi city. Primary data has been obtained via semi-structured interviews with involved stakeholders representing public and private sector to develop practically applicable recommendations to other tourism destinations.