Page 77 - RusRPTMay21

6.1.1 Budget dynamics - results
Russia’s budget revenue soars by a third in March and the balance was back in surplus. Russia’s budget revenues in March were up 33% y/y, reaching RUB2.5 trillion, according to preliminary estimates of Ministry of Finance.
The largest increase was recorded in non-oil and gas revenues (by 45% versus by 8% versus February), which reached RUB1.97 trillion, a monthly record.
One factor behind the high growth rates in March was a low base (tax revenues fell due to the onset of the quarantine and government response measures). Another factor, however, is also the ongoing recovery in economic activity.
The breakdown shows the largest increase in tax revenues related to imports (up 31.7% y/y), as well as other income (RUB588bn, soaring 273%).
The dynamics of oil and gas revenues also shifted into positive territory (growth was 3.4% after a 10.0% decline in February). Since oil and gas revenues are calculated at the weighted average oil price in the previous month, the y/y growth in March O&G tax revenues does not fully reflect the oil price slide in March 2020 due to the pandemic and the ongoing recovery this year, meaning the highest growth should be expected in April.
77 RUSSIA Country Report May 2021 www.intellinews.com