Building and developing the mechanism of proactive budgeting
Importance Under modern conditions, a search for additional sources of revenues and efficient expenditure management in the formation of regional and local budgets is of great importance. It may be realized trough proactive budgeting. Objectives The aim of the research is to develop methods enabling to implement the proactive budgeting technology for survival and development projects. Methods The study employs general scientific principles of the system-structural and structural-functional analysis; the review of specifics of proactive budgeting and self-taxation of citizens rests on the comparative and dialectical methods. Results I considered the nature of proactive budgeting and specifics of applying relevant mechanisms in the Tula oblast. The paper includes a comparison of mechanisms of proactive budgeting and self-taxation of citizens, analyzes the experience in distribution of regional budget for expenditure co-financing under proactive budgeting, reveals main problems and shortcomings of the approach. I offer an improved procedure for project selection. It is focused on financing the projects that provide expenses necessary for survival and development of territories, and takes into account essential differences between these two groups of projects. Conclusions If applied, the offered procedure will help identify strengths and weaknesses of proactive budgeting and work out reasoned proposals for its mechanism development.