Advantages Of Participatory Budgeting

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Participatory budgeting Participatory budgeting introduces an original way of managing public resources with the aim of engaging citizens in government. It is a democratic tool in which taxpayers participate in discussions and decisions about how to spend part of the public budget. It is also a means to increase the accountability and the responsibility of politicians. For this type of budgeting to work well, some training of citizens and groups that participate is convenient. This type of budgeting is used mainly by local governments with the aim of using a more participatory approach in certain areas. According to Pidgeon (2010, p. 18), the potential advantages of this approach include: better decision-making; greater understanding of budgetary…show more content…
As it is focused on cash movements, it is said that it is mainly a short term plan, which do not consider long term implications. The modified cash basis is sometimes used for budgeting and means that budgetary revenues are recognized when cash is collected or when related receivables have a short term maturity and expenditures are recognized when cash is paid or when related obligations have a short term maturity. The budget, in this case, is a tool for control and to assure compliance with the limits of…show more content…
There are some reasons for avoiding the accrual basis in budget according to Blöndal (2003 and 2004): accrual budget is believed to put budget discipline at risk (if major capital projects, for example, could be voted on with only the commensurate depreciation expense being reported, there is a fear that this would increase expenditures for these projects); different purposes (a cash-based budget focuses on the traditional public sector control of legality); and the sheer complexity of accruals. In most European countries, budgets are based on cash or modified cash methods. However, the accrual is gaining ground to cash basis in the accounting system. This means that there is a risk in the usefulness of financial accounting. As the budget is the most important document for planning and management all the debates are focus on it and financial accounting is

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