Economic Efficiency of Public Participation and Oversight in the Budget Process

This article theoretically and empirically examines the impact of public participation and oversight in the budget process on the economic efficiency of public spending. Public participation is assessed as a mechanism for aligning budget allocations with citizens’ actual needs, reducing information asymmetry, improving the targeting of public expenditure, and strengthening public oversight over project implementation. Drawing on studies by Uzbek, Russian, European, and American scholars, the article systematizes the effects of public participation on allocative efficiency, the quality of public services, social welfare, and budget accountability. The study proposes the introduction of a Public Participation Budget Efficiency Index (JIBSI), stronger public acceptance procedures after project completion, a “Budget Outcome Passport” for participatory-budgeting projects, assessment of territorial participation efficiency, and calculation of a budget multiplier for partnership-based co-financing. These proposals shift the evaluation focus from participation volume to measurable public value and fiscal outcomes.