This article analyzes the history of Porto Alegre's Participatory Budgeting (PB) aiming to critically understand its integration within different political and urban regimes over its long existence in the city’s government. To achieve this, the study employs theoretical references on the processes of political and social democratization, in the relationship between the State and civil society, and data from municipal administration and academic studies. These sources allow for an evaluation of the most impactful factors in the transformations of this participatory urban planning method. The study finds that the PB, despite its long continuity, has lost empowerment and quality due to changes in the political and fiscal context of the municipality, highlighting the relevance of these factors for the effectiveness and sustainability of democratic innovations regarding public resource management.