INITIATIVE BUDGETING AS A TOOL FOR CITIZEN ENGAGEMENT IN STATE AND MUNICIPAL ADMINISTRATION

Abstract

The article examines initiative (participatory) budgeting as a tool for engaging citizens in state and municipal administration at the local level. It reveals the content and legal institutionalization of this mechanism, established by Federal Law No. 236-FZ of 20 July 2020 and preserved during the 2025 local self-government reform by Federal Law No. 33-FZ. Drawing on official data of the Ministry of Finance of the Russian Federation and the Financial Research Institute for 2019–2024, the study analyses the dynamics of the practices, the structure of their funding sources and the sectoral orientation of the implemented projects. It is established that the mechanism has evolved from a local financial instrument into a mass form of direct public participation: over the decade more than 217 thousand projects worth over 300 billion rubles have been implemented. The methodology combines formal-legal, statistical and comparative-legal methods; an author's indicator of the funding localization level is proposed. Key managerial effects and systemic constraints are identified, and recommendations for improving the regulatory, financial and digital support of initiative budgeting are formulated.