This paper aims to provide a comprehensive analysis of participatory budgeting (PB) practices in Hungary by exploring the experiences of three local governments. The research specifically investigates the environmental conditions conducive to PB adoption, internal organizational factors influencing its success and the short- and long-term outcomes of the process. Although in well-developed democracies attributed with active local communities has a long tradition in participation and cooperation between government and citizens, the Hungarian context offers a unique examination of participatory budgeting (PB) due to the developing civil sector and historical mistrust between government and civil society. However, in the context of increasing governmental centralization, local initiatives advocating for citizen-driven budgets are emerging. This research explores the feasibility of implementing participatory budgeting in this challenging environment. The interplay of a fledgling civil sector, entrenched scepticism, and centralization provides a distinctive backdrop for understanding PB dynamics in Hungary.