The two-day festival was the subject of cutbacks by Birmingham City Council in December, along with St Patrick's Day, Vaisakhi and the city's £189m library.
Birmingham Pride brands itself as the UK's biggest two-day lesbian, gay, bisexual and transgender (LGBT) event.
The organisers said the council cuts had not affected the festival following an increase in prices and donations.
Director David Nash said the council had previously funded road closures, parking suspensions, the village green and carnival parade.
"In March, we decided to retain those aspects of the festival," he said. "Everything is the same as it was previously.
"It's just that there has been an increase in ticket prices and we have had to be more proactive to get donations from private organisations."
The council cuts will also apply to the 2016 festival.
Mr Nash said he expected about 50,000 people to attend the event, which he said welcomed everybody, regardless of sexuality.
Stars appearing on the main stage, located on Lower Essex Street, will include Jimmy Somerville, Jess Glynne, Atomic Kitten and Heather Small.
The parade, which began in Victoria Square, featured decorated floats, street performers and an open-top bus.
It finished at the main Pride festival site around Hurst Street.
Mr Nash said the event would run into the early hours.
The council said: "We are facing serious financial pressures. We support community events in terms of officer time but we are no longer giving money."
Birmingham's 19th Pride event is taking place despite £20,000 of cuts by the city council.