Participatory budgeting is significant in democracy as it enhances citizen engagement and accountability in financial decision-making. It allows citizens to voice their priorities regarding public spending, encouraging transparency and ensuring resources are allocated effectively. By involving communities directly in the budgeting process, governments can foster a sense of ownership and agency among constituents. This process not only empowers citizens but can also lead to more equitable distribution of public funds, addressing local needs and concerns. As a result, participatory budgeting can strengthen democratic practices and reinforce trust in governance.