Preliminary Results of 2022 for the Consolidated Budgets of the Subjects of the Russian Federation. Adaptation or Crisis?

The consolidated budgets of the subjects the Russian Federation execution in 2022 was carried out in conditions of massive sanctions pressure on the domestic economy, significant fluctuations in prices on world commodity markets, radical changes in economic logistics chains and an increase in the need for budget expenditures. In January-November 2022, the growth of regional budget revenues only slightly lagged behind the rate of inflation. At the same time, in a number of regions with a significant role of ferrous metallurgy and related mining industries, there was a marked reduction in tax revenues to regional budgets, and in some cases to the consolidated budget of the country. Receipts of corporate income tax during the year had a pronounced tendency to decrease. Budget revenues from personal income tax played a stabilizing role. The growth in the need for expenditures of regional budgets was reflected in their advanced growth in comparison with revenues. The result was a marked increase in the volume of public debt compared to the beginning of the year. At the same time, there has been a tendency to replace bank loans and bond loans with budget loans. Budget loans for some regions are beginning to play the role of instruments to compensate for the vertical financial imbalance.