ALEXANDER DERYUGIN: MOSCOW SAVED REGIONS OF THE NORTH CAUCASIAN FEDERAL DISTRICT FROM THE BUDGET CRISIS
Having studied the fiscal capacity of the regions based on the results of 4 months of 2020, Alexander Deryugin, Researcher of the Budget Policy Department, Gaidar Institute has come to a conclusion that Moscow saved regions of the North Caucasian Federal District from the budget crisis through the advanced allocation of fiscal transfers. Alexander Deryugin’s opinion was published by the Aktsenty online news outlet.
As per Alexander Deryugin's calculations, “within four months in the regions of the North Caucasian Federal District revenues increased by 12.1%, while, for instance, in the Central Federal District and the North-Western Federal District they fell by 3.7% and 4.4%, respectively. The state debt growth leaders in Russia are the Moscow Region and St. Petersburg which were badly-hit by the coronavirus.”
Alexander Deryugin noted that “growth in the revenues of some regions was underpinned by means of advanced federal transfers. Indeed, Moscow distributed 28.6% more fiscal transfers among constituent entities than a year before. But even this measure compensated only partially the loss (over Rb350bn by now) of the regions’ tax revenues.”
“The depletion of the volume of fiscal transfers will lead to a dramatic drop in regions’ tax revenues in the forthcoming months”, Alexander Deryugin concludes.
Alexander Deryugin noted that “growth in the revenues of some regions was underpinned by means of advanced federal transfers. Indeed, Moscow distributed 28.6% more fiscal transfers among constituent entities than a year before. But even this measure compensated only partially the loss (over Rb350bn by now) of the regions’ tax revenues.”
“The depletion of the volume of fiscal transfers will lead to a dramatic drop in regions’ tax revenues in the forthcoming months”, Alexander Deryugin concludes.