The subordinate’s involvement in the budgetary process may generate amazing benefits for
the economic entity. International studies suggest that participatory budgeting may
motivate employees, increase their performance, their satisfaction and may help the entity
to obtain more realistic budgets. These are the primary reasons for which participatory
budgets still are a present topic. This paper aims to offer an overall analysis of the
participatory budgeting process, from the advantages that it generates, to the essential
elements that should be taken into account for designing an effective participatory
budgeting system in economic entities, by providing a synthesis of studies written on this
subject. It underlines the benefits, while identifying the necessary conditions for a successful
and effective application of participatory budgeting.