The article contains the analysis of initiative budgeting practices in five Russian regions: Altay, Stavropol, Kirov, Tver and Tula regions. Initiative (participatory) budgeting — the practice of engaging citizens into decision making on budget funds allocation, which is at the junction of formal and informal institutions: it is included in the system of state and municipal finances and is based on social ties and communication mechanisms in local communities. The article reveals that initiative budgeting has become a systemic managerial practice in the analyzed regions, which is used to distribute funds between municipalities on a competitive basis. The regularities of citizen participation, changes in the structure of their preferences regarding public infrastructure during the implementation of initiative budgeting programs have been identified, conclusions on the relationship between types of projects and co-financing by citizens, on the specifics of stimulating community involvement in public decision-making are drawn.