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In a participative budgeting system, budget information flows in both directions, from bottom to top, and from top to bottom.

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Participative budgeting is a way of budgeting in which the subordinates who are influenced by a budget are actively involved in formulating it. So, it is more of bottom up approach i.e. flow of information from subordinates to seniors unlike top down budgets which are imposed by senior management on junior management.

However, on and off the top level management needs to provide necessary guidelines on the overall vision and mission of the organisation to the employees formulating budget plans.

So, it can be said that the statement is false as budget information flows from bottom to top.

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