Key Outcomes and Avenues for Development of Participatory (Initiative) Budgeting in Russia

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* * 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

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

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 PBand 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’sCitizens’ 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 practicethat 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 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 www.vmeste76.ru

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 2030 10% of Bashkortostan residents will be engaged in participatory budgeting projects. • It is expected that by 2030 10% 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 • 2021: • Implementing PB projects through the Web • 2019: • Engaging non-profit organizations in PB; • TV shows • 2020 : • Purchasing of communal equipment • Engaging school students in PB

13. 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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