How does participatory bud’ geting seek to make the func- tioning of local governance institutions more transparent and accountable ? 1. By allowing citizens to deli- berate and negotiate over the distribution of public resou rces 2. By allowing citizens to play a direct role in deciding how and where resources should be spent 3. By allowing historically excluded citizens with access to important decision- making venues Select the correct answer using the codes given below—

Participatory budgeting (PB) is a democratic process that enhances transparency and accountability in local governance by involving citizens directly in financial decisions. Statement 1 is correct as PB facilitates deliberation and negotiation among citizens regarding the distribution of public resources, moving beyond traditional representative models [2]. Statement 2 is correct because it empowers citizens to play a direct role in deciding specific resource allocations and spending priorities, ensuring that public funds meet actual community needs [3]. Statement 3 is correct as PB is specifically designed to be inclusive, providing historically excluded or marginalized groups with access to decision-making venues that were previously dominated by elites [2]. This process fosters trust-based governance and improves the efficiency of resource allocation by aligning government spending with citizen preferences . Collectively, these mechanisms ensure that local institutions remain answerable to the public.

Sources

1. [2] Exploring Society:India and Beyond. Social Science-Class VI . NCERT(Revised ed 2025) > Chapter 12: Grassroots Democracy — Part 3: Local Government in Urban Areas > Before we move on … > p. 181
2. [3] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 15: Budget and Economic Survey > 15.2 Economic Survey 2022-23 > p. 450