1. PEMPAL 2019 Annual BCOP Plenary Meeting
Tashkent, Uzbekistan, March 21, 2019
Key Outcomes and Avenues for Development of Participatory (Initiative) Budgeting in Russia
Anna Belenchuk
head, budget SYSTEM analysis and development unit, Ministry of Finance, Russian Federation

2. Current results of participatory budgeting development*
 Indicator
2015
2016
2017
2018 1.
Number of regions engaged in Participatory Budgeting practices, units 7 16 47 52 2.
Regional subsidies for implementation of PB programs, bln rubles
1.4
5.1
7.7
n/a 3.
Federal budget expenditures, bln rubles** - 38 4.
Community and business co-financing, bln rubles
0.4
0.7
1.1 5.
Total cost of projects, bln rubles
2.4
7.0
14.5 6.
Number of projects implemented, units
2 657
8 732
15 942
* Data are based on a review of official responses by regional executive governments to a MOF request concerning PB practices in the respective period.
** - includes funding for priority project of the Ministry of Construction and HSU Shaping a Livable Urban Environment and Federal Targeted Program of Russia’s Ministry of Agriculture Sustainable Development of Rural Areas in 2014–2017 and to 2020.

3. Classification of Citizen Engagement Practices in Russia
Criterion
1. World Bank’s LISP
2. People’s Initiative, People’s Budget
3. EUSPb Participatory Budgeting (EUSPb PB)
4. Youth Budget
5. Community-led areas development program (PORT)
Launch
2007
2011
2013
2017
2018
Key characteristics
1. Citizens select projects at community meetings
2. Projects are competitively selected based on formalized criteria
3. Integration into national administrative, budget and legal systems
4. Projects are financed from regional budgets with mandatory cofinancing from local communities, businesses and municipalities.
Regional variations of PB practices, presenting a synthesis of various PB approaches
Allocation of earmarked municipal funds or borrowed funds based on decisions of a commission comprising randomly selected members from among project applicants and municipal representatives. The commission may propose initiatives concerning various areas of urban life.
Provision of funds from the regional budget (3 mln rubles) on an annual basis, for allocation with the participation of high school seniors.
1. Type of projects: construction and rehabilitation of social infrastructure facilities in urban okrugs
2. Each community meeting selects 1 project and 3 delegates.
3. A congress of delegates selects 2 projects from each okrug.
4. Voting through the public services website
Regional coverage
Kirov, Tver, Nizhniy Novgorod oblasts, Stavropol, Khabarovsk krai, Republic of Bashkortostan, Northern Ossetia, Jewish autonomous oblast, and other regions
Tula, Irkutsk and Tambov oblasts
13 towns and urban settlements in Leningrad, Vologda, and Kirov oblasts; in 2016 a PB project was launched in St. Petersburg
Sakhalin oblast

4. Participatory (initiative) budgeting in Russia: Key stages
2015
2016
2017
2018
An IB Center was established within MOF’s Financial Research Institute
World Bank’s Project to Promote Participatory Budgeting in the Russian Federation was launched
A medium-term PB development program in the Russian Federation was drafted
PB was incorporated in main strategic government documents

5. Key Areas of Activities of the Government of Russia until 2024
Included objectives:
5.3 Development of constituent regions and municipalities
Introduce and provide training in engagement mechanisms enabling citizens to participate in addressing issues of social and economic development of territories based on the participatory (initiative) budgeting concept, making sure that the share of regions that have approved PB programs (activities) within their government programs increases to 50%
6.2 Effectiveness of public spending, including procurement for state and municipal needs
Ensure openness of the budgetary planning process and involve civil society institutions in the process
6.8 Engaging citizens in state and municipal governance
Expand citizen engagement in developing proposals, discussing and making managerial decisions
Introduce participatory (initiative) budgeting mechanisms
Expand public oversight practices

6. Concept for Improving the Efficiency of Budget Spending during 2019-2024
Included objectives:
Improve a system of public discussions of draft laws and regulations concerning citizens’ interests, present draft laws and regulations that are of most social significance in an accessible format.
Make sure that the published information on results of government activities, including public financial management, is understandable.  
Enhance a system of public hearings for draft budgets and budget execution reports and improve mechanisms for review and consideration of citizens’ suggestions put forward during such hearings.
Define a legal framework for PB and grant the authority for regional governments and local self- government bodies to establish particular aspects of PB implementation.
Incorporate PB in possible implementation arrangements for various activities, including those aimed at enhancing urban environments.
Develop methodological recommendations on PB project development and implementation for regional governments, local self-government bodies, and citizens.
Summarize and disseminate best regional (municipal) practices of implementing PB projects.
Make sure that citizens have free access to learning and information materials on PB practices.
Disseminate budget knowledge and instruments enabling participation in public financial management and public oversight among various population groups.
Improve presentation formats of citizens’ budgets.

7. Government Program Public Finance Management and Financial Market Regulation
As adopted by Government Resolution № 340 dated March 29, 2018
Key activity 3.4. Implementation of the PB Development Program in the Russian Federation
Actions:
- Put in place a regulatory framework governing PB practices in the Russian Federation;
- Build an institutional infrastructure to develop PB at the regional and municipal levels;
- Accompany, regulate, and provide information support to the process of PB development;
- Monitor and evaluate PB programs and practices.
Expected outcomes:
- Better public awareness about opportunities to participate in identifying and selecting areas for budgetary spending and in subsequent oversight over implementation of selected projects.
- Higher demand for information on formulation and execution of budgets in the Russian Federation.
Indicator 3.5 – share of Russian regions (%) that have approved PB programs (action plans) as part of their regional government programs

8. MOF’s Citizens’ Budget Project: Areas
Review international standards on budget management openness, design and implement individual instruments based on best international practices.
Design a methodology and monitor budget data openness at the regional level in Russia.
Enhance mechanisms for engaging citizens in the budget process at the local level based on participatory (initiative) budgeting practice that is wide-spread globally.
Design activities to improve citizens’ budget literacy.
Organize contests of ideas among the public on how to present Citizens’ Budgets.
Prepare and publish annual MoF reports on best regional and municipal practices for various project parts (Citizens’ Budget, initiative budgeting, etc.).

9. Best PB Practices in Russian regions in 2018
Criterion
Region 1.
Share of regional budget allocated to PB projects
Yaroslavl Oblast 2.
Share of PB project beneficiaries
Kirov Oblast 3.
Comprehensive approach to PB
Republic of Bashkortostan 4.
Citizen engagement in meetings to propose PB projects
Republic of Sakha (Yakutia) 5.
Enhancing budget literacy of PB participants
St. Petersburg 6.
Extent of citizen engagement in decision-making
Tula Oblast 7.
PB support infrastructure
Krasnoyarsk Krai 8.
PB awareness-raising campaign
Stavropol Krai 9.
Visual presentation of a PB program
Altai Krai
10.
Implementation of income-generating PB projects
Republic of Komi
11.
Setting up PB in a single municipality
Sosnovi Bor (Leningrad Oblast)
Source: MOF Report on best PB practices in Russian regions and municipalities

10. Best Practice of Financing PB Projects from the Regional Budget
Let’s Decide Together! Project
Yaroslavl Oblast
RUR443.8 million (1.04% of total regional expenditures) allocated to finance PB projects
Implemented as a priority Governor’s project
A portion of funds used from a priority project Shaping a Livable Urban Environment supervised by the Ministry of Construction of Russia
An integrated project office has been created at the Yaroslavl Oblast Council of Municipalities
Information support in mass media and on municipal websites. A web portal has been designed for the project

11. Best Practice by the Number of PB Project Beneficiaries
Local Initiatives Support Project
Kirov Oblast
Share of PB beneficiaries is 65.4% of total population.
Social focus of PB projects.
Identifying social target groups of beneficiaries of PB projects.
Various types of tenders for different projects, with different project selection processes, procedures and cofinancing terms.
PB projects addressing local community needs are treated as investment programs.
Projects are evaluated on the basis of objective (calculated) and subjective criteria, with consideration for financial, statistical and social conditions in municipalities.

12. A Comprehensive Approach to PB Development
Participatory Budgeting
in the Republic of Bashkortostan
Strategic indicators (from the Republic of Bashkortostan Social and Economic Development Strategy):
It is planned that by % of Bashkortostan residents will be engaged in participatory budgeting projects.
It is expected that by % of the consolidated budget will be spent through PB mechanisms.
New PB mechanisms (practices) implemented in Bashkortostan:
PB mechanisms (practices) used in the Republic of Bashkortostan:
LISP
“Real Actions”
“Ufa (Bashkir) Backyards”
“Our Village”
Income-generating projects
2019:
Engaging non-profit organizations in PB;
TV shows
2021:
Implementing PB projects through the Web
2020 :
Purchasing of communal equipment
Engaging school students in PB

13. Local Initiatives Support Program (LISP) Republic of Sakha (Yakutia)
Best Practice of Citizens’ Participation in Community Meetings to Propose PB Projects
Local Initiatives Support Program (LISP)
Republic of Sakha (Yakutia)
Share of municipal residents who took part in meetings:
- Preliminary meetings – 28.2%; final meetings – 14.1%.
Effective tool for engaging citizens through the media, social networks, and messengers.
Identifying relevant and urgent issues during preliminary reviews of projects.
Recording decisions adopted by residents and the number of participants attending final meetings by taking minutes, photos and videos of the meetings held.
High level of citizen co-financing of PB projects (7.4% of total project cots).

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