The government is pushing to expand the Participatory Budgeting program next year, it was confirmed on the 8th. For now, the public can submit ideas such as "Please allocate a budget for this project." But starting next year, the government said it will reflect public opinion when executing the budget after it is finalized and during post-implementation evaluations.

The expansion is related to the steady decline in usage of Participatory Budgeting. According to the National Assembly Budget Office, the number of public proposals on the draft budget was ▲2,043 for 2023 ▲1,191 for 2024 ▲718 for 2025 ▲517 for 2026. In response, the government reportedly floated the idea of expanding the scope for public input to boost usage.

Inside and outside government, some say usage cannot grow unless shortcomings found during the implementation of Participatory Budgeting are addressed. There is also a need to learn from overseas cases. Porto Alegre in Brazil, the first city in the world to adopt Participatory Budgeting, has effectively halted the program due to side effects that emerged during implementation.

President Lee Jae-myung instructs, "Broadly reflect the public's opinions in the budget drafting process," at a Cabinet meeting at the presidential office in Yongsan, Seoul, on July 15. /Courtesy of Lee Jae-myung President SNS

◇ Budget office notes "lack of outreach, poor follow-up management"

The National Assembly Budget Office, in a recent report, cited the government's lack of outreach as one reason for low use of Participatory Budgeting. It said many people do not even know the program exists.

It also said that even when people know about the program and participate, the process is not transparently disclosed. Explanations are lacking about how a proposed project is reflected in the budget and, if it is not reflected, why.

The budget office also said follow-up management is poor. Seven agencies—the Korean National Police Agency, Fair Trade Commission, Anti-Corruption and Civil Rights Commission, Korea Customs Service, Personal Information Protection Commission, Ministry of Government Legislation, and Military Manpower Administration—did not monitor the execution status of Participatory Budgeting projects over the past three years.

Another problem is that there is no mechanism to filter out mass submissions from malicious complainants. In Feb. last year, 457 of 621 project proposals related to the 2025 draft budget were posted by the same complainant.

◇ Overseas shutdowns on the rise as well… "Swayed by political forces"

In Porto Alegre, Brazil, considered the "originator" of Participatory Budgeting, the program has effectively been halted due to problems that arose during implementation. The city first adopted participatory budgeting in 1989—the first in the world—and drew attention for improving basic infrastructure such as sewage and roads through the program.

However, in the late 2000s, a change in the ruling bloc weakened the drive to push Participatory Budgeting. Around the same time, as Brazil hosted the World Cup, local governments prioritized World Cup-related projects. As a result, resident-selected social overhead capital (SOC) projects for daily life were pushed down the list. Side effects also emerged as some civic groups focused on competing to secure subsidies.

Seville in Spain, Prague 7 in the Czech Republic, and Bratislava in Slovakia also implemented Participatory Budgeting systems but later halted them. They faced sluggish resident participation and a lack of operating funds and administrative staff.

Jung Chang-su, head of the Local Fiscal Research Institute, said, "The intent to increase public participation in national finances is desirable, but on the operational side there are difficulties, such as being swayed by the ruling political forces," adding, "It is also unclear what level and scope of public participation would be appropriate."

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