Abstract

This essay begins with a history of the relationship between budgeting and
democracy, from the dawn of the modern state and liberalism to today. The various
budgetary ideologies – from the balanced budget dogma to the welfare state’s redistributive
budget – are examined. Current budgetary practices are reviewed below, in the context of
the general trend towards decentralization, with increased autonomy and resources from
local governments. The discussion finally culminates in the participation of organized
sectors of civil society in budget preparation and execution, examining alternatives to the
predominance of corporate and group interests over the general interest.

JEL Classification: H50; O20.