Page 112 - RusRPTJun24

6.1.3 Budget dynamics - govt funding plans
6.1.4 Budget dynamics - regions
According to an analysis by the Gaidar Institute, based on the first quarterly results of the implementation of regional budgets, almost half of Russia’s 83 regions faced a drop in fiscal revenues in the first three months of 2024 compared to the same period in 2023. In two major oil and gas producing regions, the Tyumen Region and the Yamal-Nenets Autonomous District, tax collection was more than 30% below last year’s indicators. This is mostly due to a drop in corporate income tax revenues, an important source of revenue for regional budgets. Another key revenue stream, personal income tax collections, grew considerably. This is due to rising salaries triggered by labor shortages and war-related production as well as social support payments. While some regional revenues nominally grew in the first quarter, the overall growth was below inflation. It is unlikely that regions will face bankruptcy in the near future—their debt burden, on the whole, is low, and most of it consists of cheap budgetary loans—but the federal government is not planning to increase transfers to most regional budgets. President Putin recently approved the development plans of 10 poorer regions. However, the federal financing of these plans amounts to
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