Is participatory budgeting a driving force behind excessive social welfare spending?

Participatory Budgeting (PB) allows citizens to directly influence public fund allocation, often enhancing poverty reduction and administrative efficiency. This study explores PB’s impact on social welfare spending in 214 Korean municipalities, identifying a significant increase in such expenditures post-PB adoption. The research highlights a potential overemphasis on social welfare spending due to PB, exceeding levels justified by socio-economic, political, and fiscal factors. It also shows that legislative checks, political pressures on mayors, and diverse political orientations can counterbalance the spending surge. The study cautions against a PB’s disproportionate focus on social welfare, which might neglect other government functions.