ABSTRACT

Participatory budgeting (PB) is a form of direct governance where delegates are selected to make project-based decisions that determine how government funds are spent. The popularity of PB has steadily increased since its introduction in Porto Alegre, Brazil in the 1990s. Substantial variation exists within and across countries in the degree to which it is used, the scope of the decision and level of participation, and the process adopted. Some governments have institutionalized PB, while others have adapted it for one-time decisions. There are several challenges to implementation to be considered: developing participant capacity, encouraging staff support, and assuring representative participation. Despite these issues, PB has the potential to lead to significant positive outcomes related to reallocation of resources, transparency, responsiveness, citizen empowerment, accountability, and trust.