Participatory budget is a repeatable decision-making process for determining all or part of the allocation of public resources by citizen，and they can be open consultation on the allocation of limit public resources. It is the innovation of local governance. The experiments of participatory budget reform have ever been done at many places in China，by which some experience have been accumulated and the development of grassroots democracy has been promoted. On the basis of learning from other local experiences，the experiment on the Reform of Participatory Budget was carried out at Xihu district in Nanchang city. The participation enthusiasm of the residents was aroused by the mobilization of social organizations to promote community and street involvement. While the district government’s full empowerment for the grassroots offers the practical possibility for the openness of the decision-making process and the repeated consultations with the resident，leading to the “Xihu Model” involved in Budget Reform. Of course，some defects exist in the reform experiment，including the influence of community cadre on project proposal as well as the obvious difference between the participation of social organizations and residents，which will be improved in subsequent practice.