CITIZENS’ BUDGET AS AN INSTRUMENT FOR INCREASING THE OPENNESS OF THE BUDGET SYSTEM

The subject of the research. The reform of public finances in Ukraine involves implementing measures to increase the openness and transparency of the budget system. The subject of the research is the role and place of the «Citizens' Budget» in the context of reforming the system of public finances. The purpose of the article is to justify the concept of «Citizens' Budget» and study the possibilities and conditions for its introduction into the domestic sphere of public finances. The methodology of the work. It was used a set of scientific methods and approaches in the work, including systematic, structural and comparative methods, which allowed to realize the conceptual unity of the research. The results of the work. Change and transformation in the understanding and definition of citizenship has led to the emergence of citizen-oriented public service approach. This approach also raised a new term and concept in the field of public budgeting because of the transformation in the processes of public budgeting: citizens' budget. The citizens' budget which seeks to ensure participation of the citizens in the budgeting process serves as a tool to ensure that the budget is shared with the public transparently and that the people take part in the budgeting processes. Citizen's budget is one of the main tools and instruments that the central and local administrations could use to ensure greater transparency and citizenship participation. This study focuses on the concept of citizens' budget, its goals and principles. In addition, the paper also analyzes the phases of budget-making and the expected outcomes out of the citizen-oriented budgeting. Furthermore, the study, referring to practices of different countries in this field, offers some insights on the citizens' budget. The field of application of the results: organization and conducting of scientific researches in the field of improvement of budget policy in the conditions of transformational changes. Conclusions: Increasing the transparency and openness of the budgetary system of Ukraine through the active practical use of the concept of the «Citizens' Budget» requires the creation of effective mechanisms for interaction of citizens, providing accessible relevant information for different target groups, involving the public in decision-making. The study of the problems that arise during the formation of «Citizens' Budgets» may be useful in planning, execution of budgets of different levels and to monitor the effectiveness of budget allocations. Implementation of the concept of the «Citizens' Budget» will ensure the formation of more open and trustful relations between public authorities and the population, which in turn will contribute to the increase of the efficiency of budget expenditures, the targeted use of budget funds, especially in the field of ensuring basic social standards.