Regional Budgets in the First Three Quarters of 2019: Will the Expenditures Decrease?

Alexander N. Deryugin – Senior Researcher of the Russian Presidential Academy of National Economy and Public Administration; Researcher of the Gaidar Institute (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Inter-budget transfers permitted largely to maintain relatively high growth rates of regional consolidated budget revenues amid the reduction of the income base of the corporate profit tax and low growth rates of other taxes. Transfers made up largely for the slowdown of growth in tax and non-tax revenues.

Despite concerns over the probable low level of cash administration of regional budgets, it remained at the average level in the 2011–2019 period.

The slowdown of the growth rates of regional budget revenues, which was expected up to the end of 2019 can affect adversely both future growth rates of regional budget expenditures and the budget balance. In the former instance, it means that it will be necessary to cut expenditures, including those related with the implementation of national projects, while in the latter one it may be required to go beyond the parameters of the agreements with Ministry of Finance of the Russian Federation on the terms of provision of adjustment subsidies, as well as restructuring of the earlier received budget loans.

Key words: consolidated budgets revenues, consolidated budgets expenditures, regional budgets, corporate profits tax, personal income tax, public debt.