Results of 2023 for Regional Budgets. Is the Restructuring of the Economy Visible?

The generally favorable situation with the implementation of the consolidated budgets of the subjects of the Russian Federation in 2023 is a result of the positive dynamics of key macroeconomic  indicators,  expressed  in  an  increase  in  tax  revenues  of  budgets.  In  the context of generally high growth rates of tax revenues, the federal transfers showed a slight nominal increase. In most regions, there has been a reduction in federal transfer recеipts, which may indirectly indicate an emerging revision of the existing model of inter-budgetary relations. There is a certain dependence of the dynamics of transfers on the dynamics of tax revenues and the availability of funds (last year’s surpluses) in the budget accounts of the subjects of the Russian Federation. The structure of tax revenues by type of economic activity has not yet shown significant changes. There is a pronounced decrease in the share of wholesale and retail trade, against the background of an increase in the share of the financial sector and extractive activities. Expenditures of regional budgets in 2 023 grew more actively than revenues, which led to the formation of a deficit in the consolidated budgets of the subjects of the Russian Federation. The differing growth rates of budget expenditures have the consequence of the continued concentration of regional-level expenditures in a relatively narrow group of the most powerful regions in terms of economic potential. The increase in the volume of accumulated state subfederal debt occurs in conditions of active substitution of market forms of debt obligations with loans from the Ministry of Finance of the Russian Federation.