Organizational and methodological foundations for improving the management of participatory budgeting as a tool for ensuring inclusive development of the territorial community

The paper examines the theoretical and organizational foundations of participatory budget management as one of the innovative tools for involving citizens in the allocation and use of budgetary resources, democratization of the budget process at the local level to stimulate inclusive development of territorial communities. The purpose of the paper is to develop organizational and methodological foundations for improving the management of participatory budgeting as a tool for ensuring inclusive development of the territorial community. The study used general scientific methods of cognition (analysis and synthesis, induction and deduction); decomposition method; mathematical modeling. Based on the results of the assessment of the national practice of participatory budgeting, the author identifies the problems of functioning of participatory budgets and substantiates the ways to solve them. In particular, an algorithm for the examination and selection of participatory budget projects is proposed, which makes it possible to take into account in this process such principles of the inclusive economy as the strategic relevance of development projects and the level of interest of project initiators in their implementation. The authors modeled the dependence of the parameters of the participatory budget on the state of the institutional environment for the functioning of public finances, which revealed the existence of a direct correlation between budget expenditures for the implementation of publicly initiated development projects and macroeconomic dynamics, the efficiency of public administration and the rule of law. On the other hand, the effectiveness of countering corruption risks in the public sector creates preconditions for improving the quality of budget execution in terms of the compliance of its expenditures with public priorities, which “blurs” the need for participatory budgeting as a budget technology.