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The Budgeting Process and the Implications on Social Policies and Poverty Reduction: Alternatives to Traditional Models (Draft)
This paper analyzes the key aspects of the budget process, the conditions and players necessary for its execution, and the different management models that have evolved. It gives an overview of the debates regarding the budget process and budgeting approaches, with special focus on two alternative forms to traditional budgeting: participatory budgeting and gender-sensitive budgeting. These alternative forms of budgeting have brought local and regional governments closer to the population, responding to a vision of society and rights which stimulates citizens’ participation, tolerance, the search for social contracts and basic consensus, the design of integrated and coordinated social policies and transparency in government management.
The author addresses the adoption of new public management modalities within the framework of change in the State’s traditional role, as a consequence of the policies and conditionalities imposed by international financial institutions. By highlighting that this trend has occurred together with the strengthening of the political and territorial decentralization processes and the distribution of the decision-making power to favour local and regional administrations, the paper contextualizes the budget system’s core challenges to support development, reform spending priorities, develop innovative instruments, and define new alliances.
It concludes by emphasizing that these challenges require the commitment and participation of the civil society as well as the best tools for resource management, which can lead to greater transparency and efficiency in both national and cooperation policies.
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