Advantages of participatory budgets

• Information from employees most recognizable with each unit’s needs and constraints is included.
• Knowledge spread amongst numerous levels of management is pooled together.
• Morale and motivation is improved
• Acceptance and commitment to organization’s goals and objectives by operational managers is increased
• Co-ordination between divisions is improved
• Operating management are able to develop plans which tie in within organization goals and objectives
• Specific resource requirement are included
• Senior managers overview of the organization is mixed with operational level details
• An expression of the expectation of both senior management and subordinate is provided.