The main feature of the practice known as Particpatory Budget in the possibility of people`s intervention in identifying needs, choosing priorities and making decisions related to municipal investment. Generally viewed as an alternative to traditional models of city managemente, participatory budegetting intends to set new patterns of articulation between organised interests and the State. In this way, new modes of local governance emerge. Regardless of being viewed advanced in democratisation that helps to turn social equity into a reality , public discussion concerning investment budget hs not been aknowledged by the body that - in liberal, democratic model established by the 1998 Constitution in Brazil - must take care of the interests represented by the political parties, i.e., the legislature. As a matter of fact, this new kind of representation involving direct participation intends to giver legitimancy to the Executive branch and get rid of the legislature, or neutralise its decision making power with regard to public policies. Thus, such a process would make relations between t these powers more tense, and such relations are already tense within a presidential system. For the aforementioned reasons, some attempts at enforcing the Partticipatory Budget have not been successful despite its democratic feature. Salvador Municipal Prefecture, for instance, offfers management experience that provides a more efficient and fairer allotment of public money. There are multiple factors that interfere in public policy making and determine the success or failure of implementation. They may be found in the institutional administrative and financial context, or in the political and socio-economic context. The latter conditions the way and degree of access to participation. Also, such factors may be found outside the process, in a larger historical context. The initiatives to institutionalise Participatory Budget in Brazilian municipalities are not the exception to the rule. Thus, they should be viewed ina context that relies upon conflicting interests within society, administration and power bodies and are strongly conditioned by juridical and operational instances which try to lead the fight against such conflicting interests. As an attempt at joining democracy and participation to better State efficiency and effectiveness, the experience shows inner and outer contradictions, and leads to important questions concerning local governance. As the starting point fo the analysis of the doctrine aspectos that comprise Participatory Budget, this paper intends to explore to what extent juridical and operational requirements - that are imposed by such doctrine aspects indirect representation - may reach systemic functionality and local governance, and compromise, at the same time, the principle that justifies the initiative of Participatory Budget - i.e., the possible intervention of the citizens in the allotment of public money