What is participatory budgeting?

Definition of participatory budgeting

Participatory budgeting is a democratic approach that allows community members to have a direct influence on spending a portion of the public budget.

Typically, the community begins by proposing ideas for projects, programs, or initiatives. After this initial phase, they are given a specific set of resources, like virtual pounds or points, to vote on the projects that are most important to them.

This method ranks high on the participation ladder and empowers residents to propose, discuss, and vote on the projects that are most important to them.

Examples of participatory budgeting

Participatory budgeting originated in 1989 in Porto Alegre, Brazil, during a crucial time when the country was moving from dictatorship to democracy. Since then, participatory budgeting has grown and is now implemented in thousands of cities worldwide. Here are four more examples:

Newham, United Kingdom‍

The London Borough of Newham has become a leading example of participatory budgeting through its People Powered Places program. Between 2021 and 2023, £1.6 million from the Neighbourhood Community Infrastructure Levy funded 157 local projects, making this one of the UK's most extensive local participatory budgeting initiatives. The program aims to empower residents to directly influence the development of their communities.

A key component of this success is Newham Co-create, the borough’s resident engagement platform powered by Go Vocal. This platform played a pivotal role in facilitating interactions within the Community Assemblies program, supporting an impressive 16,552 resident engagements between 2021 and 2023 — more than five times the participation from the 2018–2020 cycle

The program’s impact is reflected in the residents’ overwhelmingly positive feedback from the 2022/2023 cycle:‍

89% felt more connected to their local area‍
85% agreed that they felt they had the opportunity to discuss and identify local issues‍
84% felt they were more involved in decision-making processes‍
82% believed they got greater say in allocating local funding

By combining robust digital engagement with in-person deliberation, Newham has successfully demonstrated how participatory budgeting can foster community cohesion, ensure transparent decision-making, and bring residents closer to their local government.

Read more in our full case study

Ghent, Belgium‍

The city of Ghent has long been a pioneer in community engagement. In 2019, the city quintupled its budget for participatory projects and assembled a dedicated team of participation experts and neighbourhood coordinators to facilitate co-creation. Building on this momentum, the city launched a new edition of its participatory budgeting initiative, Het Wijkbudget (Neighbourhood Budget), in 2020, leveraging the Go Vocal platform for the project’s digital component.

Residents were allocated an impressive €6.25 million to improve 25 neighbourhoods. The primary goals of the initiative were to engage as many residents as possible in co-creating their surroundings and to strengthen social cohesion within neighbourhoods.

Across two rounds of Het Wijkbudget, residents submitted a total of 943 ideas. Following assessments by the neighbourhood panels, online voting, and local discussion tables, 150 projects received approval and funding.

Ghent’s approach demonstrates how participatory budgeting can go beyond project funding to foster meaningful connections, address community vulnerabilities, and empower residents to shape their environment.

Read more in our full case study

Toronto, Canada‍

Toronto Centre is divided into six zones. This ensures each area receives the attention and resources it needs, facilitating a smooth and effective participatory process. There is 750,000 CAD available for neighbourhood enhancements within each zone.

This participatory budgeting project is currently in progress. First, residents were invited to pin their ideas on an interactive map, allowing them to visualize exactly where and how their suggestions could come to life. A dedicated folder has been created on the Go Vocal engagement platform for each zone.

Being so diverse, Toronto Centre wanted to go the extra mile to engage as many residents as possible with activities like the “PB In-person Tour”. They set up booths in parks, community centers, and at major events like PrideTO, for residents to register ideas in person, engage in conversations, and provide feedback.

*Example of the voting on Toronto Centre’s engagement platform*

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In the second phase, each submitted idea underwent a thorough review by city staff, who assessed feasibility and calculated costs to guarantee practicality and sustainability.

Now in phase three, residents are voting on the ideas they believe will best enhance their community through Go Vocal’s Participatory Budgeting tool.

After the votes are in and the winners are announced, the projects will be submitted to the City Council. Upon approval, these ideas will transform from proposals on a map to tangible changes in the community.

Have a look at Toronto’s engagement platform

Viña del Mar, Chile‍

In 2024, Viña del Mar launched its first participatory budgeting (PB) initiative, allocating $200 million CLP to projects addressing community needs, with a particular focus on areas impacted by a major wildfire in February 2024.

The PB initiative followed a carefully designed framework, enabling residents as young as 14 to propose and vote on projects. Key stages included:

Regulation development, establishing clear guidelines and participation criteria to ensure transparency.
Proposal submission, during which residents contributed 89 project ideas via the Viña Decide Go Vocal platform and in-person workshops.
Feasibility review, during which municipal teams assessed technical and financial viability, resulting in 44 admissible proposals.
Project development, to plan and refine project concepts.
Public voting, with options for digital and in-person participation to ensure accessibility.

The initiative encouraged projects that emphasised improving public spaces, infrastructure, and community well-being. Among the final 26 projects, 65% focused on infrastructure enhancements, such as lighting and recreational areas, while 35% supported community activities like cultural events and mental health programs.

Once the eligible ideas were selected, the engagement team invited the submitters of each project to participate in workshops and work together on the development of their ideas.

Benefits of participatory budgeting

Participatory budgeting is a game-changer in community engagement and, when approached correctly, has the potential to unleash a cascade of benefits:

It fosters innovation and creativity: By involving a wide audience in the decision-making process, participatory budgeting can spark innovative ideas and solutions you might not have considered otherwise.
It leads to informed investment decisions: participatory budgeting ensures that public funds are allocated to projects that truly matter to the community, leading to more effective and impactful investments.
It gives insights into community sentiment: By analysing the choices made by participants, you can gain valuable insights into community priorities, preferences, and emerging trends.
It has an educational value: Participatory budgeting provides a unique opportunity for community members to step into the shoes of decision-makers and weigh up various options based on cost, value, and merit. This way, they gain a deeper understanding of the complexities of public budgeting and policymaking.
It empowers residents and builds trust: By giving community members a direct voice in decision-making processes, participatory budgeting makes them feel empowered and fosters a sense of ownership and trust in government.

Disadvantages of participatory budgeting and potential solutions

While participatory budgeting is a valuable tool for engagement, it comes with challenges. Below are some of the common hurdles local governments experience and strategies to address them:

1. Limited participation

Challenge: Certain groups, such as communities with historically lower trust in government, individuals who feel their voices are often unheard, or those with limited digital access, may face barriers to participation. Additionally, some residents might perceive the process as overly complex or challenging to engage with, further deterring their involvement.
Solutions:
- Implement targeted outreach strategies, such as door-to-door campaigns, multilingual materials, and partnerships with local organisations.
- Offer diverse participation methods, including in-person workshops and accessible online community engagement platforms, to ensure inclusivity.
- Simplify and clearly communicate the steps of the process through workshops, visual guides, and community ambassadors who act as liaisons.
- Provide ongoing support to participants during each stage.

2. Resource-intensive process

Challenge: Participatory budgeting requires time, funding, and administrative effort to plan, facilitate, and monitor effectively.
Solution: Leverage existing community networks, volunteer support, and partnerships with civil society organizations to reduce costs. Invest in user-friendly digital tools that streamline the process, such as online resident engagement platforms for idea submission and voting.

3. Challenges in sustaining engagement

Challenge: Initial enthusiasm may wane after the first few participatory budgeting cycles, leading to reduced participation over time.
Solutions:
- Keep your projects dynamic by introducing new themes, such as sustainability or youth engagement, and rotating focus areas.
- Celebrate and publicize the success of completed projects to maintain public interest and trust in the process.

4. Technical and financial constraints

Challenge: Many proposals may be unfeasible due to budgetary or regulatory limitations, leading to participant frustration.
Solutions:
- Set realistic expectations from the outset by clearly communicating the available budget and criteria for proposal eligibility.
- Offer workshops to help participants craft practical and actionable project ideas.

How to get started with participatory budgeting

Drawing on lessons from successful examples like Ghent, Newham, and Viña del Mar, here’s an overview of the key steps to set up an effective participatory budgeting project:

1. Define a clear scope and objectives

Start by identifying the goals of your initiative. Is it to address specific community needs, enhance inclusivity, or foster trust? Determine the portion of the budget you’ll allocate and decide which types of projects will be eligible.

Lesson from Viña del Mar: Focus on areas with urgent needs, like recovery after a disaster, to make a visible impact and engage residents effectively.

2. Establish transparent guidelines

Develop a clear and equitable framework that outlines participation criteria, proposal eligibility, and voting processes. Transparency builds trust and ensures fair engagement.

Lesson from Toronto: Use a platform like Toronto Centre Projects to set and communicate guidelines, ensuring residents understand each step of the process.

3. Engage the community early

Involve residents from the beginning by holding workshops, community meetings, and online consultations to gather input on priorities. Broad outreach is essential to ensure diverse representation.

Lesson from Ghent: Use tools like neighbourhood panels or lottery-based selection to ensure inclusivity, bringing diverse voices into the decision-making process.

4. Leverage digital tools for accessibility

Use digital platforms to make engagement easier and more inclusive. Online tools can streamline proposal submissions, voting, and progress tracking.

Lesson from Viña del Mar: Platforms like Viña Decide allow residents to submit and refine proposals and stay informed, complementing in-person efforts for wider reach.

5. Start small and scale gradually

Consider piloting participatory budgeting in one or two neighbourhoods or focus areas to test the process and learn from the experience before expanding.

Lesson from Newham: The borough scaled up to one of the UK's largest participatory budgeting initiatives by building on lessons from smaller implementations.

6. Provide support and facilitation

Offer workshops or guidance to help residents craft actionable and feasible proposals. Partner with community leaders or organisations to amplify outreach efforts.