Abstract
This systematic review examines Participatory Budgeting (PB) as a democratic innovation for advancing sustainability in local governance. Following PRISMA 2020, a systematic search across Scopus, Web of Science, and Science Direct yielded 1,041 records, with 20 peer-reviewed studies (2016–2025) meeting eligibility criteria. Data were synthesised using narrative thematic analysis, with methodological quality assessed via the Mixed Methods Appraisal Tool. Findings reveal three contributions: environmental outcomes depend on ecological project allocation and youth engagement, though organisational capture persists; social equity requires explicit justice rules and community capacity-building, yet literacy barriers and digital divides constrain participation; economic sustainability demonstrates robust evidence linking PB to reduced debt and increased social expenditure. Critical enablers include political leadership, organisational capacity, institutional integration and community empowerment. For local governments, successful implementation requires mandatory adoption protocols, legislative clarity, infrastructure investment and integrated monitoring systems.
Keywords: Participatory Budgeting; Local Governance; Sustainability; Public Finance