Participatory Budgeting

Participatory budgeting (PB) is a democratic process where community members directly decide how to allocate public budget. Originating in Porto Alegre, Brazil (1989), PB has spread to 7,000+ cities. The process: government allocates discretionary spending to PB, residents propose projects, community meetings refine proposals, all residents vote on allocation. Research shows PB produces more equitable spending, increased civic engagement beyond PB itself, higher tax compliance, and better project outcomes from local knowledge. PB also serves as civic education—participants learn about constraints and tradeoffs through direct experience rather than abstract instruction.

When to use it

When wanting to democratize resource allocation in an organization or community. When seeking to increase engagement and buy-in for spending decisions. When traditional top-down budgeting produces inequitable or suboptimal outcomes. When building civic engagement infrastructure.

How it can help

PB principles apply to any shared resource allocation. Running participatory processes for team budgets, learning resources, or office improvements increases buy-in and surfaces better ideas. For civic participation, advocating for PB in your city is high-leverage local action—it directly democratizes resource allocation while building civic skills. Even at small scale (PTAs, neighborhood associations), PB processes develop democratic capacity.