Sharp rise in Barents Russia revenues

Ministry of finance of the Russian Federation has published a document revealing the volume and dynamics of tax and nontax revenues and expenditures of the regional budgets in Northwestern Russia in 2010.

Tax and nontax revenues have grown in all the regions of the Northerwestern Russia. The largest growth has been recorded in the Nenets Autonomous Okrug (by 40.9%), Arkhangelsk Oblast (by 32.0%), Karelia Republic (by 30.4%), Vologda Oblast (by 29.0%), Murmansk Oblast (by 24.9%), Kaliningrad Oblast (by 21.0%).

Where do the revenues come from?
The main source for the budget revenue is still the personal income tax paid by the population. The growth of the personal income tax revenue, although not so significant has been registered in all the northwestern regions. The highest figures were achieved in the Komi Republic (by 8.9%), Pskov Oblast (by 8.5%), Kaliningrad Oblast (by 7.9%), Novgorod Oblast (by 7.9%), Arkhangelsk Oblast (by 7.6%), St.-Petersburg (by 7.5%).

Read also: How much do people earn in Murmansk?

The largest growth of revenue to the regional budgets comparing to 2009 was from the profit tax and excise tax.

Thus, profit tax revenues have grown in 9 regions, but mostly in the Karelia Republic (by 213.1%), Arkhangelsk Oblast (by 153.0%), Vologda Oblast (by 124.0%), and Murmansk Oblast (by 78.3%). In the Novgorod Oblast revenue to the budget from the profit tax has reduced.

Also in 9 regions revenue to the budgets has grown from excise taxes paid for excisable goods (products) made in Russia. The leaders include Arkhangelsk Oblast (growth by 85.0%), Kaliningrad Oblast (by 83.5%), Novgorod Oblast (by 82.3%), Pskov Oblast (by 68.8%), Karelia Republic (by 66.4%), and Murmansk Oblast (by 44.9%). Revenue from this item has reduced in the city Saint-Petersburg.

A large part of all the revenues to the regional budgets is made up by non-repayable transfers from budgets of other levels and also governmental grants, meaning nontax revenues. In the revenues of 8 regions the share of non-repayable transfers exceeded 15%. In the Pskov Oblast it even exceeded 35%. The largest increase in the non-repayable transfers from budgets of other levels was registered in the Pskov Oblast (by 10.6%) and the Arkhangelsk Oblast (by 9.1%). The largest decrease in non-repayable transfers comparing to 2009 has been recorded in 6 regions.

The least revenue to the regional budgets was from the mineral extraction tax. The growth of revenue from this tax was registered only in 3 regions: Pskov Oblast (by 54.0%), Murmansk Oblast (by 33.5%), and Leningrad Oblast (by 17.4%). In 7 of the northwestern regions revenues from mineral extraction tax have reduced. Among those regions there are Arkhangelsk Oblast (reduction by 71.5%) and Komi Republic (reduction by 69.8%).

What is the money spent for?
In general, total tax and nontax revenues to the northwestern regional budgets in 2010 amounted to 592.9 bln. roubles (118.7% from the revenue of 2009), whereas total expenditures from the same budgets in 2010 amounted to 779.1 bln. roubles (108.9% from the expenditures of 2009).The revenues grew in 11 regions, among them Vologda Oblast (by 13.8%), Pskov Oblast (by 12.9%), city Saint-Petersburg (by 11.2%), Karelia Republic (by 10.9%), Arkhangelsk Oblast (by 9.9%), Nenets Autonomous Okrug (by 9.3%).

29% of all the expenditures from the northwestern regional budgets go for salaries and salary charges. In 3 regions the share of this type of expenditures is more than 35%, they are Komi Republic, Murmansk Oblast, Karelia Republic.

Expenditures to increase fixed assets value in the regions under investigation amounted to 142.5 bln. roubles, or 18.3% from total expenditures in 2010. In 3 regions the share of expenditures to increase the fixed assets value exceeded 25%, they are city Saint-Petersburg, Nenets Autonomous Okrug, and Kaliningrad Oblast. The highest growth rate of the fixed assets value comparing to the previous year was recorded in 4 regions: Vologda Oblast (by 13.4%), Arkhangelsk Oblast (by 12.4%), Nenets Autonomous Okrug (by 10.5%), Karelia Republic (by 1.1%). The expenses were most significantly reduced in the Murmansk Oblast (by 41.2%), Novgorod Oblast (by 32.4%), Leningrad Oblast (by 27.3%), Pskov Oblast (by 19.0%), Karelia Republic (by 14.9%), Kaliningrad Oblast (by 5.1%).

Only Nenets district is without debts
In 2010 the budget deficit in the NW regions was 20.6 billion roubles. 7 of the northwestern regional budgets were executed with deficit, the highest deficit being for the city of Saint-Petersburg (11.8 bln. roubles), Vologda Oblast (6.9 bln. roubles), Novgorod Oblast (3.5 bln. roubles), Kaliningrad Oblast (3.0 bln. roubles), Pskov Oblast (711.4 bln. roubles), Karelia Republic (488. mln. roubles).

The northwestern regions of Russian continue to raise borrowed funds actively: in 2010 29.3 bln. roubles were borrowed from credit institutions and 23.6 bln. roubles were paid as loan repayment. Loans from budgets of other levels were given to 10 northwestern regions in the amount of 20.1 bln. roubles. Only 1 region can do without loan-raising – Nenets Autonomous Okrug, which accordingly does not have any governmental debts.

As for the largest debtors in the northwestern of Russia, among them there are: Vologda Oblast (18.5 bln. roubles), Arkhangelsk Oblast (14.1 bln. roubles), Kaliningrad Oblast (11.4 bln. roubles),Karelia Republic (8.5 bln. roubles), Novgorod Oblast (7.5 bln. roubles).

Text: Anastasia Sazhenova