Page 67 - RusRPTSept21

the total revenue of the consolidated budget has risen to one-fifth.
Revenues from corporate taxes and income taxes have recovered rapidly and revenues from employers' social security taxes have also risen sharply. These budget revenue items have increased by 15-20% from two years ago. In addition, the rapid growth of many other relatively small budget revenues items has contributed significantly to the increase in total budget revenues.
The substantial increase in budget spending undertaken last spring to support the economy and mitigate the social consequences of the recession has waned. In the second quarter, expenditure growth was less than 7% year-on-year and in real terms expenditure was slightly lower than year-on-year.
“It is worth remembering that in the spring of last year, expenditure was high (expenditure increased by almost 20% from the spring of 2019),” BOFIT said. “Expenditure in the various sectors of the economy continued to grow strongly (30% year-on-year), and budget expenditure in the housing sector also remained relatively strong (15%). Growth in education expenditure accelerated (10%). Instead, health care spending began to decline. Expenditure on public administration, defence, and internal law enforcement and security has grown very slowly this year. Pension expenditure has increased slightly.”
Expenditure in the various sectors of the economy, especially compared to two years ago, has risen sharply (70% in the second quarter), as has expenditure on other social assistance (45%). Expenditure on health care and public administration has also increased significantly (25%). Expenditure on education, defence and internal law enforcement and security has increased more modestly (12–16%). Pension expenditure has risen by less than 10% as the number of pensioners has gradually declined and policies in 2018 have limited the average pension increase to 6-7% per year.
“Given the high levels of spending last year and this year, it is possible that significant expenditure increases related to the Duma elections in September - such as the increase in federal budget spending in July from half a year ago - may be short-lived,” BOFIT said.
As in the past, as the recession eases, Russia is working to reduce the budget deficit created by the recession. With revenue rising rapidly and
67 RUSSIA Country Report September 2021 www.intellinews.com