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The article analyzes the state of proactive budgeting in the world and in Russia as well as identifies the main possible directions for its development. The directions of reforming the taxation of personal income in foreign countries and Russia over the recent years are considered. Demand for a fair and effective approach to taxation is shown. The feasibility of developing proactive budgeting in the context of the personal income tax (PIT) reform in terms of expanding the rights of honored and distinguished taxpayers of PIT for participation in participatory budgeting is substantiated. Suggestions have been formulated to amend the regulatory framework on proactive budgeting, to encourage honored and distinguished taxpayers, and to provide them with the opportunity to actively participate in creating a list of projects as well as making decisions on their financing.