Fiscal and Tax Policy Response to New Challenges and Budget Performance in the First Quarter of 2023

Abstract

The beginning of 2023 allows us to draw the first results of the Russian economy response to the impact of external and internal shocks in 2022. The structure of the Russian economy remains relatively stable, many catastrophic forecasts have not materialized. However, the sanctions that have come into force and the rapid measures of the anti-crisis policy pose a threat to fiscal stability. The main burden falls on the federal budget, but in the medium term, the depletion of federal reserves will also affect the state of the regional budgets. The paper analyzes the dynamics of indicators of the consolidated budget of the Russian Federation and the budgets of state off-budget funds, as well as separately – the federal budget. In conditions of limited access to data on budget execution, some conclusions are hypotheses and assumptions. In addition, the statistics were distorted by the introduction of the unified tax payment mechanism. The paper distinguishes between the mechanism of the impact of temporary and permanent exogenous shocks. The response of fiscal policy is considered in the context of the division of measures into temporary and structural changes, and appropriate recommendations are given.