One of the assumptions of the democratic system of governing is the citizens active participation in the management process. The citizens participation is of a key significance to the effective management of the territorial government units. It builds up the sense of local community and co-responsibility for the decisions taken. The aim of the public participation is both the creation of an efficient system needed for the citizens needs meeting and obtaining the citizens acceptance of the actions by the authorities as well as the citizens trust in the efficiency of the authoritys activity. Such activities trigger the citizens identification with the specific community and have them more likely to engage in its vital issues. The aim of this paper is to present the tools of social participation in the modern and integrated management of the units of territorial government; one particular instrument, i.e. the social (participatory) budget. This paper presents among others the idea of participatory budgeting and the phases of its creating. It also includes the comparison of data concerning participatory budgeting in selected cities/states. The authors intention is to contribute to the discussion on the citizens participation and to start the study of its forms, such as the participatory budgeting. The method of documentary research has been applied, including the respective literature analysis as well as comparative analysis and observation.