Digitalization of the budget process in medium-sized districts: proactive budgeting

The main area of use of the initiative budgeting mechanism remains the area of local self-government. In the Sverdlovsk region there is a positive trend in the application of the practice of initiative budgeting, which indicates that local authorities and the population are aware of the possibilities of initiative budgeting, and a regulatory framework has been created. Initiative budgeting allows citizens not only to participate in planning directions, implementing projects and monitoring the expenditure of local budget funds, but also to solve pressing social issues and prevent emerging conflicts with authorities. The typology of implemented projects confirms the social orientation over the past 4-5 years. Digitalization of the budget process will ensure transparency, accessibility and efficiency of budgeting, which in turn affects proactive budgeting. promoting greater citizen engagement, improved decision quality and overall efficiency of municipal financial management. Digital transformation of budgeting is a process that can bring many benefits, but also significant risks. The development challenges and the most significant risks of implementing such projects in urban districts are identified. Problems are formulated that slow down the implementation of proactive budgeting in practice. The tools that contribute to the development of proactive budgeting are identified, as well as the expected effects from the introduction of digital tools for proactive budgeting.