The First Quarter of 2023 for the Consolidated Budgetsof the Subjects of the Russian Federation: Emerging Trends and New Conditions

At the beginning of the year, the consolidated budgets of the subjects of the Russian Federation were executed in conditions of continued sanctions pressure on the regional economy. Organizational and administrative innovations had a significant impact on the process of budget revenue formation (enactment of payment of taxes using a single tax account, cancellation of income tax payment within consolidated groups of taxpayers, introduction of an accelerated procedure for reimbursement of personal income tax). The growth of regional budget revenues in real terms was provided by federal transfers. Tax revenues grew only nominally. The increase in corporate income tax receipts did not compensate for the reduction in personal income tax receipts. Expenditures of regional budgets grew at a higher rate than revenues, which led to a reduction in the total amount of the positive balance of the consolidated budgets of the subjects of the Russian Federation in most regions. The trend towards an increase in the volume of state and municipal debt has continued with an outstripping growth in the volume of budget loans. There is a substitution of market forms of borrowing for budgetary ones as compensation for the existing inefficient model of distribution of tax powers.