PROACTIVE BUDGETING IS A TOOL FOR EFFECTIVE MUNICIPAL PROGRAMS

Oleksandr Kievich, Galina Morunova

Abstract


In conditions of strategic planning at the municipal level development the issues of effectiveness of municipal program and determination of the optimal amount of financial provision are being actualized. Us-age of modern economic theories (Theory of public choice, Theory of constitutional economy, Theory of budgetary federalism, Theory of city economy etc.) allows to determine optimal amount of social benefits and costs while municipal program planning. A new tool for optimization is public participation in budgeting process – proactive budgeting. The approach makes possible increase of effectiveness of municipal programs. 

Keywords


local social benefit; social costs; effectiveness of municipal programs; financial provision; proactive budgeting

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References


Buchanan, J. (1997). Constitution of economic policy. Calculation of consent. Boundaries of freedom. Moscow: Taurus Alfa, 482.

O'Sullivan, A. (2002). The economy of the city. 4th ed.: Trans. With the English. - Moscow: INFRA-M, 706.

Oates, W. (1972). Fiscal Federalism. N. Y: Harcourt, Brace, Jovanovich


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