participatory budgeting can be regarded as one of the tool of participatory governance. citizens are enabled to directly participate in management of public funds at local government level. Participatory budget is not mere consultation but where people actively engage in setting priorities and voting for what will actually happen. Municipal corporations will allot a specific sum of money in budget to meet the suggestions put forwarded by citizens for developmental process.

In the year 2006 Pune Municipal corporation introduced a form of participatory budget which allowed citizens to include suggestions in developmental process. since then it is carried out every year with the help of organizations like janwani and centre for environment education (CEE). The concept of participatory budget in INDIA is novel and as of 2014-15 was being executed in an institutionalized manner in Pune and Pimpri-Chinchwad.