Participatory budgeting (PB) is a process of democratic deliberation and decision-making, and a type of participatory democracy, in which ordinary people decide how to allocate part of a municipal or public budget. Participatory budgeting allows citizens to identify, discuss, and prioritize public spending projects, and gives them the power to make real decisions about how money is spent. When PB is taken seriously and is based on mutual trust local governments and citizen can benefit equally. In some cases PB even raised people's willingness to pay taxes.
Participatory budgeting generally involves several basic steps:
1) Community members identify spending priorities and select budget delegates;
2) Budget delegates develop specific spending proposals, with help from experts;
3) Community members vote on which proposals to fund;
4) The city or institution implements the top proposals.