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Participatory budgeting (PB) lets residents decide directly how to spend part of a public budget — proposing projects, debating them and then voting on which ones get funded — instead of leaving every spending choice to elected officials and staff.
The idea began in Porto Alegre, Brazil, in 1989 as an anti-poverty reform and has since spread to thousands of cities. Digital platforms scaled it up. Since 2014 Paris's Budget Participatif has let residents vote online on about 5% of the city's investment budget, delivering thousands of projects; Reykjavik has run neighbourhood budgeting through its Better Reykjavik platform since 2011; and Barcelona runs its participatory budget on the open-source Decidim platform, now used by cities in more than 20 countries.
The honest limits are scale and skew. PB usually controls only a small slice of the total budget, so its real power over a city's finances is modest, and turnout can tilt toward already-engaged residents unless organisers work hard at outreach. Online voting adds its own questions of fraud and digital exclusion. Done sincerely it builds trust and surfaces local knowledge; done as a box-ticking exercise it becomes participation theatre.