Our study describes a rigorous evaluation of the participatory budgeting (PB) initiative in Józsefváros, Budapest, for the years 2022 and 2023, examining its capacity to enhance democratic mechanisms within a semi-autocratic, hybrid regime. We contextualize PB in the broader landscape of participatory democracy, drawing parallels between global practices and Hungary-specific dynamics. Utilizing a comprehensive comparative methodology, we explore three critical dimensions: the evolution of participation, the trajectories of ideation, and patterns in voter behavior. Our findings reveal measurable growth in Józsefváros’s PB across these domains, noting increased participant engagement, voter turnout, and idea diversity. This underscores the potential for enhancing democratic participation even in illiberal regimes. Nonetheless, the impact of this emerging initiative remains concentrated within a specific subset of the Józsefváros populace, highlighting the imperative of deploying broader and more inclusive strategies to ensure its sustainability.