U-LEAD with Europe held an info session on the introduction of the public budget. Representatives of municipalities learned about the algorithm and tools for introducing the public budget under martial law, as well as the advantages and challenges of this process.
“In wartime, municipalities have faced a number of challenges, including managing local finances. They optimise and choose priority directions for spending. The introduction of a public budget can help relieve social tension and involve the population in determining these directions. Through the topic of “public budget”, we decided to show councils how the public can influence the spending of municipal budget funds,” said Liudmyla Hurba, Adviser on Decentralisation and Local Self-Government at the Regional Office of U-LEAD in the Vinnytsia Oblast.
In the conditions of war, not all municipalities are able to introduce a public budget due to a number of financial, organisational and other obstacles.
“Funds from local budgets are mainly directed to the functioning of municipal institutions and meeting the social needs of the population of the municipality. Even under martial law, the public demands and has the right to receive information about exactly how the budget process is managed. The public wants to participate in the management of budget funds and to control their use,” said Olena Savchenko, Adviser on Municipal Finances and Management of the Regional Office of U-LEAD in the Kirovohrad Oblast.
According to the expert, if the municipality has the financial and organisational capacity to introduce a public budget, then it should do so.
“The public budget is a tool for involving the public in the budget process where citizens are given responsibility for the distribution, use and control over the use of budget funds,” she said.
When implementing the public budget, a number of laws and regulations should be taken into account. Municipal officials should take into account the Law “On Local Self-Government in Ukraine” No. 280/97-BP dated 21 May 1997, Order of the Ministry of Finance of Ukraine “On Approval of Methodological Recommendations on Mechanisms of Public Participation in the Budget Process at the Local Level” No. 94 dated 3 March 2020 and Resolution of the Cabinet of Ministers of Ukraine “On Ensuring Public Participation in the Formation and Implementation of State Policy” No. 996 dated 3 November 2010.
“With the obvious exception of those under occupation, municipalities of Ukraine must efficiently provide their residents with everything they need. Aid to the military is a priority, but the social component is also important. Municipalities that hosted large numbers of internally displaced persons were not prepared to increase their population, let alone provide housing stock and other facilities. Therefore, the structure of expenses in these municipalities differs from those that were directly on the front line or under occupation. The rear municipalities keep working on the social integration and adaptation of IDPs, as well as the provision of public amenities and repairs,” said Olena Savchenko.
The expert analysed Resolution of the Cabinet of Ministers of Ukraine “On Approval of the Procedure for the Exercise of Powers by the State Treasury Service under Martial Law” No. 590 dated 9 June 2021, which, according to many representatives of municipalities, may hinder meeting public budget targets.
“This Resolution does not list prohibited expenses. Instead, it defines expenses of first, second and third priority, and the payment notes indicate information about these priority levels,” said the expert.
As she emphasised, the public budget under martial law can become a tool for restoring local democracy and implementing joint social initiatives.
“Today, support for the military and civil protection of the population are the priorities, and this tool can facilitate the implementation of initiatives aimed at this. There are already many such cases. They include setting up shelters, conducting training for civilians or organising quarters for military personnel,” Olena Savchenko added.
The introduction of a public budget requires following clear organisational steps, such as creating a working group, determining financial options, developing a regulation and its adoption by the relevant local council. U-LEAD experts spoke in detail about the algorithm for introducing the public budget and analysed the main components of the provision.
Tetiana Filatova, Adviser on Decentralisation and Local Self-Government at the Regional Office of U-LEAD in the Luhansk Oblast shared the tools for implementing the public budget and involving the population of the municipality in this process.
“The main goal of introducing the public budget is to engage residents of the municipality to address issues of public importance. This will be reflected in the projects and initiatives submitted by the public. Moreover, this tool will help establish interaction with the public and promote social integration,” she said.
The expert presented approaches to conducting information campaigns regarding the launch of the public budget to the participants of the event and talked about the main channels and forms of public outreach. According to Tetiana Filatova, when introducing the public budget, communication and public outreach should be among the priorities, so that the residents have a clear understanding of all processes and transparency is ensured.
“The introduction of the public budget has its advantages both for local self-government and for the residents of the municipality. The public receives a tool to obtain funds for the implementation of its own projects. The highest officials of the local self-government bodies are able to see support for certain initiatives and more effectively study the public opinion on the further development of the municipality. This improves the interaction, and the public sees and understands that their suggestions and opinions are taken into account,” Liudmyla Hurba summarised.