Page 66 - RusRPTSept21

6.0 Public Sector 6.1 Budget
In Russia, general government revenues have risen, expenditure growth has slowed and the deficit has narrowed
Russia’s federal budget is looking in far better shape than anyone predicted as the economy bounces back from last year’s annus horribilis, reports Bank of Finland Institute for Economies in Transition (BOFIT) in its weekly update.
Revenues from the consolidated budget in the second quarter of this year were one-third higher than a year earlier, when they fell sharply (the consolidated budget covers the budgets of the federation, regions and municipalities, and state social funds), reports BOFIT.
Revenues were 17% higher than two years ago. Real incomes have also risen, as nominal income growth has significantly exceeded the inflation rate, although it has also been quite rapid (consumer prices were over 9% and industrial producer prices about 15% higher than two years earlier).
Budget revenues from production taxes and export duties in the oil and gas sector rose as much as 2.5 times in the second quarter after crashing last year in the spring, mainly due to the recovery in oil export prices this year. Oil and gas tax revenues were about the same as two years earlier.
Other revenues in the consolidated budget have also recovered well, accumulating 20% more year-on-year in the second quarter (40% if the central bank's settlement of the additional surplus from the Sberbank transaction to the budget in spring 2020 is excluded).
Other budget revenues were 20% higher compared to two years earlier. In particular, revenues from VAT have increased, by more than a third from a small decline last spring and 30% from two years ago. Production and imports have increased, but at the same time the collection of VAT revenues seems to have improved further. The share of VAT revenue in
66 RUSSIA Country Report September 2021 www.intellinews.com