Participatory budgeting is significant in local governance because it involves citizens in the budget allocation process, enhancing democratic participation and transparency. Through this approach, communities can directly influence how public funds are spent, addressing local needs and priorities. This practice fosters civic engagement, as residents collaborate to decide on funding initiatives related to healthcare, infrastructure, and education. It cultivates a sense of ownership over local government decisions, encouraging accountability among elected officials. Overall, participatory budgeting empowers citizens and strengthens the connection between the government and the community.