The budget is one of the most powerful fiscal instruments at the disposal of incumbent governments to implement political commitments and development agendas. The size of the budget, especially for development investment, is usually the sole proxy to judge a government's seriousness of purpose. What is rarely discussed, however, are the critical issues of transparency and accountability in the budget making process. Only a transparent and accountable budget making regime can ensure effectiveness and results.

There are at least three obstacles to improving transparency in the budget making process - weak citizen involvement, limited Parliamentary debate and unavailable or opaque information.

The concept of participatory budgeting does not exist in Pakistan. The municipal budget of Porto Alegre, Brazil is a good example. Around 40,000 people have participated in budget preparation every year since 1999. Why is citizen participation so critical? Because it addresses inequalities and enhances impact. In Porto Alegre, it empowered the low-income segments of the population, raising their voices and prioritizing their needs.