Page 70 - RusRPTFeb19

limits, S & P analysts said. In the strongest regions, the quality of managing incomes, expenses, and debt is improving, but long-term financial planning is unreliable — the regions lack the mechanisms to counter the volatility of the tax base. For example, from 2017, local budgets lost 1 pp of income tax, from 2018 they received the right to impose a tax on movable property, but in the same year they lost it. Taxes account for up to 70% of regional revenues, but regional authorities can influence only 10% of revenues, mainly non-tax revenues from the sale of property and fees, writes S&P.
The government named the regions with the highest pension payments.
The far eastern region of Chukotka, that used to be run by oligarch Roman Abramovich, receive the highest pensions in Russia - RUB25,173 ($380), the Siberian region of Nenets Autonomous District RUB22,050 and the far eastern Magadan region with RUB21 508.
For comparison, the national average wage is RUB42,640 ($625) per month. However, wages in the regions beyond the Ural mountains, the eastern border of Europe, are also much higher than the national average.
The difference is due to the much higher cost of living in these largely inhospitable and remote regions that produce Russia’s raw materials as everything must be flown in, thanks the lack of train and road links. bne IntelliNews drilled into income distribution in the regions in a piece “Wages in Russia’s regions are well behind the national average” in September. The distribution of pension payments roughly tallies with the regional differences in income that tend to be higher in remote regions.
Income and pension differentials in Russia are high thanks to the geographical effects on population distribution. At the same time every fifth Russian worker earns less than RUB15,000 ($250) per month, according to the results of a study by the RIA Rating agency released this month. The government is currently drilling into the income and pension distribution as part of its six year programme to revitalise the country following president Vladimir Putin’s May Decrees issued earlier this year.
The top five regions with the highest pensions in Russia also included the Kamchatka Territory (RUB21,342) and Yamalo-Nenets Autonomous Okrug (RUB21,008).
The average pension in Russia as of July 1 was (RUB14,144 or $213.7). The average size of the subsistence minimum at that date was set at RUB11,163 ($168.7)
In 46 Russian regions, the pension was below average. The lowest rates are in Kabardino-Balkaria (RUB11,413 that has an average subsistence level of RUB11,925), Dagestan (RUB11,653 and RUB9922) and Kalmykia (RUB12,137 and RUB9264).
70 RUSSIA Country Report February 2019 www.intellinews.com