ALEXANDER DERYUGIN: “A FALSE ALARM: DOES THE GOVERNMENT DEBT ISSUE REALLY EXIST AT THE REGIONAL LEVEL?” published an article by Alexander Deryugin, researcher the Gaidar Institute’s Budget Policy Department, addressing the issue of whether the growth of government debt owed by subjects of the Russian Federation requires any intervention on the part of the federal government.

As seen by the year-end results for 2020, the consolidated budget revenue of the regions increased by 9.8%, reaching 14% of GDP in real terms, which is its record high since 2011. It should be noted that this growth was caused by the allocation of additional financial assistance from the federal budget, which is a typical feature of crisis periods, and not an evidence of an improved financial situation in the regions.

The full text of the article can be found here.