THE IMPACT OF PARTICIPATORY BUDGETING ON PUBLIC GOVERNANCE: HOW CITIZEN INVOLVEMENT IN BUDGETING PROCESSES ENHANCES TRANSPARENCY AND ACCOUNTABILITY

This study examines the impact of participatory budgeting (PB) on public governance, emphasizing its role in enhancing transparency, accountability, and fiscal responsibility. Using a secondary data-based approach, the research analyzes participatory budgeting projects implemented globally from 2020 to 2024. Statistical methods, including correlation analysis, chi-square tests, and regression models, are employed to assess the relationship between citizen engagement and governance outcomes. Findings reveal a strong positive correlation (0.998, p < 0.0001) between citizen participation and transparency improvements, confirming that participatory budgeting significantly enhances fiscal discipline. The study also demonstrates that public trust in government institutions increased from 55% in 2020 to 70% in 2024, highlighting the accountability benefits of participatory budgeting. Additionally, regression analysis indicates that a 1% increase in citizen participation leads to an average improvement of 1.09 points in fiscal responsibility scores. The results affirm that participatory budgeting fosters financial prudence, reduces corruption risks, and strengthens public engagement in governance. However, challenges such as elite capture, bureaucratic resistance, and limited civic education hinder its effectiveness. To maximize its impact, governments should institutionalize participatory budgeting, leverage digital tools for accessibility, and implement independent oversight mechanisms. Future research should explore the integration of emerging technologies like blockchain and AI to further enhance transparency and accountability in public financial management.