Direct democracy is seen as a means of reengaging citizens in the political process. However, it is a contested concept that requires further development by being grounded in a specific context. This article reports on research undertaken in Victorian local government where the New Public Management (NPM) has been in evidence for a number of decades which according to the literature has impacted on accountability to the broader community. The possibility of consultation and citizen participation in the local government budgetary process was examined. The results reported suggest that participation in the budgetary decisions in local government is possible.