Participatory Budgeting (PB) is a form of direct democracy at the local level, where all citizens state annually prioritized sectors to be financed before allocating investment resources in projects of their choice in those sectors. It has four key moments: diagnosis, deliberation, decision-making and follow-up (…) The epitome of PB is Porto Alegre (…) Five criteria required to qualify a PB: all citizens participate to the choice of the allocation of resources, this occurs at an administrative level of power (for example a town, but not a quarter), this process has to be repeated over years, a deliberation must take place in a specific institution, and finally citizens should be informed ex post of the status of the budget and the projects (…) The city government’s “Presentation of Accounts” from the previous year marks the beginning of the PB process in March-April. From April until May, regional and thematic assemblies take place with the objectives of establishing thematic priorities by voting, electing councilors for each region, defining the number of delegates, and repeating the budget review for the preceding year at the local level (…) These meetings are open to all citizens and constitute the central and most inclusive component of the process (…) The five thematic areas discussed in the PB at city-level assemblies are: transport and traffic; education, leisure, and culture; health and social welfare; economic development and taxation; and organization of the city, urban and environmental development. (…) One of the main reasons why Brazilian reforms have moved so quickly after the dictatorship has been the passing of a new Constitution in 1988. This Constitution strengthened municipal autonomy, validated the participation of community groups in municipal decision-making, and attributed important social and economic policy functions to municipal authorities (…) there are four keys for a PB to be successful: a strong mayoral support, an active civil society, self-ruling given to citizens for the mechanisms of the PB, and consequent financial resources to fund the projects selected by citizens (…) The main findings are: a better allocation of resources (more equitably and appropriately distributed among sectors and communities), an increase in the financing of basic needs, and a more inclusive, less corrupted democracy.
Adrien Frank, An Overview of Participatory Budgeting, 2015