Participative Budgeting

Participatory budgeting is a process of democratic deliberation and decision-making, in which ordinary residents decide how to allocate part of the (local) budget. Participatory budgeting allows citizens to present their demands and priorities for improvement, and influence through discussions and negotiations the budget allocations made by their municipalities. Participatory budgeting is usually characterized by several basic design features: identification of spending priorities by community members, election of budget delegates to represent different communities, facilitation and technical assistance by public employees, local and higher level assemblies to deliberate and vote on spending priorities, and the implementation of local direct-impact projects.

Participatory budgeting can be done – and is supported by international cooperation - in various ways, responding to the variety of contexts municipalities are working in. It is practised in many forms in hundreds of municipalities all over the world, particularly in Switzerland where direct participation in decision-making is an important feature of local governments. One of the first and the most famous example for a full participatory budgeting process in a developing country was developed in the city of Porto Alegre, Brazil, starting in 1989. Participatory budgeting was part of a number of innovative reform programs to overcome severe inequality in living standards amongst city residents. Participatory budgeting in Porto Alegre occurs annually, starting with a series of neighborhood, regional, and citywide assemblies, where residents and elected budget delegates identify spending priorities and vote on which priorities in construction and services to implement. Annual spend on fixed expenses such as debt service and pensions, are not subject to public participation. The main function of the Municipal Council of the Budget is to reconcile the demands of each district with available resources, and to propose and approve an overall municipal budget. The resulting budget is binding. A World Bank paper suggests that participatory budgeting has led to direct improvements in facilities in Porto Alegre. For example, sewer and water connections increased from 75% of households in 1988 to 98% in 1997. The number of schools quadrupled since 1986. The high number of participants, after more than a decade, suggests that participatory budgeting encourages increasing citizen involvement. However, participation of the very poor, women and the young is often highlighted as a challenge. Participatory budgeting may also struggle to overcome existing clientelism. Other observations include that particular groups are less likely to participate once their demands have been met and that slow progress of public works can frustrate participants.

Useful links and documents

· Anwar Shah (ed.), Participatory Budgeting, The World Bank Public Sector Governance and Accountability Series, Washington D.C (The World Bank) 2007,

· UN-Habitat, 72 Frequently Asked Questions on Participatory Budgeting, Urban Governance Toolkit Series, Quito 2004,

· DFID/CIPFA, Gender and Participatory Budgeting, DFID Technical Briefing Series 2004,