Introduction

This chapter reflects upon the interesting but underdeveloped question of the democratic functions of local budgets with respect to local citizenship (Martin and Prasad, 2014). Typically, the democratic dimension of local budgets is perceived as a question of the fair allocation of expenditure. However, here we adopt another perspective, and consider the impact of local participation on the emergence of local citizenship. In particular, we examine the question of the role of budgets in local democracy. Should they only be seen as a means of control and supervision over local politicians? Or could they become a kind of school for local democracy?

We look at these questions from the point of view of the local budget. The latter can be seen as a financial representation of the most important local decisions (Ebel and Petersen, 2012). How priorities are decided is an excellent opportunity to learn about local politics. Furthermore, trade-offs highlight key problems in local governance, such as the balance between limited resources and excessive demand, and the need for support from citizens. Another key question relates to how to include considerations about the future of the local community in current decision-making (see Łukomska and Neneman's chapter in this volume). Looking at budgeting from the economic point of view highlights that citizens’ control over local decision-making is both a democratic and pragmatic requirement. At the same time, the ability of citizens to understand local politics is closely related to the development of a political culture.

The problems discussed in this chapter exclude two other important aspects of local budgeting, which are explored in other chapters (see Part III). The latter address the question of the uneven distribution of benefits (tourist amenities and suburban homes) and their costs – externalities that are linked to both overtourism (Derek) and urban sprawl (Łukomska and Neneman). The presence of both newcomers and tourists can significantly change the social meaning of local budgets for residents. These phenomena raise the question of budgetary justice as a justification for specific, local taxation in the form of, for example, tourist taxes.

We highlight the need to analyse how local democracy is manifested in local budgeting.