The master's thesis examines the implementation of participatory budgeting (PB) in Slovenian municipalities – a relatively new form of direct democracy that enables citizens to participate in deciding how a portion of the municipal budget is spent. Citizens propose projects to improve their local environment, discuss them, and vote on which ones will be implemented. The PB process is cyclical and it follows predetermined criteria and a set timeline. The thesis first places PB within a broader socio-political context of declining conventional political participation in representative democracies. It specifies the key characteristics, potential impacts and limitations of PB, and analyzes its historical development and implementation practices in European countries and in Slovenia. This theoretical framework is essential for understanding the findings of the empirical analysis, which aims to assess the current state and trends of PB in Slovenia. As of January 1, 2025, a total of 166 PB cycles have been carried out in 66 Slovenian municipalities, with 7 to 13 new municipalities adopting the practice each year. Special attention is given to participatory budgeting for the general population (PBG), where, in addition to general features and trends of the practice, the success of municipalities in engaging citizens is also examined. On average, municipalities allocate 0,6% of their budget to PBG, mostly for small infrastructure projects, with an average voter turnout of 11,7% of eligible residents. The thesis identifies the most successful cases of PBG, which can help other municipalities with introducing or adapting their PB procesess with the aim of increasing citizen participation.
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