Tax Revenues of Regional Budgets Under Sanctions Pressure

Abstract

The first half of 2022 was marked by a radical change in the geopolitical situation and an increase in sanctions pressure on the domestic economy. The breakdown of the established model of economic relations, the rupture of economic chains had a pronounced effect on the dynamics of industrial production. At the same time, the tax revenues of the consolidated budgets of the subjects of the Russian Federation have increased significantly and have not yet responded to the reduction in industrial production. Of the regions with a significant share of tax revenues from industry in the structure of consolidated budget revenues, only six had a reduction in income tax receipts, and this took place both against the background of a reduction in industrial production indices and against the background of their growth. According to the results of the first half of the year, there is no connection between the dynamics of industrial production and the receipts of corporate income tax and personal income tax to the consolidated budgets of the subjects of the Russian Federation. In a number of regions, wholesale and retail trade plays a significant role in maintaining the receipts of these taxes to the consolidated budgets of the subjects of the Russian Federation. At the same time, the pronounced lag in the growth of personal income tax receipts from the rate of inflation, which occurs with an increase in average accrued wages and a drop in real incomes of the population, may indicate the accumulation of hidden employment problems in a number of regions.