This book presents an authoritative guide to the principles and practices of participatory budgeting (PB). PB represents a direct democracy approach to budgeting. The PB offers citizens at large an opportunity to learn about government operations and deliberate, debate and influence the allocation of public resources. It is a tool for citizens education, engagement and empowerment and strengthening demand for good governance. Enhanced transparency and accountability brought about by this tool can help reduce government inefficiency, waste and curb clientele-ism, patronage and corruption. PB also strengthens inclusive governance by giving the marginalized and excluded groups of the society to have their voices heard and influence public decision making vital to their interests. PB is noteworthy because if done right, it has the potential to make governments more responsive to citizens needs and preferences and accountable to them for performance in resource allocation and service delivery. In doing so, it can improve government performance and enhance the quality of democratic participation. This book provides a careful analysis of potentials and perils of participatory budgeting as observed from practices around the globe. The book is divided into three parts. Part I presents the nuts and bolts of participatory budgeting. This is followed in Part II by regional surveys of experiences. Finally, Part III presents a review of PB practices in seven countries.