Regions' Budgets in 2020: Support by the Federation and Anti-Crisis Policy

Abstract

In 2020, the budget policy of the Russian Federation regarding regions had a strongly pronounced counter-cyclical nature aimed at immediate support of the worst-off subjects. This measure allowed to offset declining tax and non-tax revenues and ensure implementation of regional anti-crisis measures intended to strengthen the public health system, support of the economy and the social sphere. Proper tax and non-tax regions’ revenues contracted by merely 1.8%, which is a good result against the 2009 and 2014–2015 crises and was mainly due to a rebound in tax receipts in H2 2020. An all-time high public regional debt amounting to Rb2.5 trillion at the end of 2020 does not pose a serious threat for their budget stability owing to a relatively low debt burden.