BOFIT Viikkokatsaus / BOFIT Weekly 2017/09

Revenues to the federal budget performed weakly in 2016 also in areas other than taxes from oil & gas. Non-oil & gas revenues were up just 1.5 % in nominal ruble terms (without the sale of a stake in Rosneft). While transfers from the federal budget to the pension fund rose further, by over 8 %, the need for transfers was diminished by exceptionally small pension increases last year. The increase in spending from the federal budget and social funds was below the inflation rate.

Government levels of Russia's consolidated budget, 2014–2016

Source: Ministry of Finance.

Transfers from the federal budget to regional budgets continued to drop. In contrast, revenue growth at the regional level was rather good, especially revenues from excise taxes. Spending growth from regional and municipal budgets lagged inflation as was the case in a couple of previous years.