revenue generated by Komi municipality within the first half of 2025: 29 billion rubles
In the first half of 2025, Russia's municipal budgets have experienced a modest growth, with revenues reaching 29 billion rubles. This represents a 2.5 billion or 9.5% increase compared to the same period last year.
The growth in municipal revenues can be attributed to a 1.1 billion ruble or 14% increase in tax and non-tax revenues, and a 1.4 billion ruble or 7.7% increase in unconditional revenues to local budgets. Notably, contributions under the Simplified Tax System saw a significant increase of 0.4 billion rubles or 25.5%.
On the expenditure side, consolidated municipal budgets amounted to 30.2 billion rubles, a 3.1 billion or 11.5% increase from the previous year. The largest increase occurred in the areas of "Education", "Culture, Cinematography", "Physical Culture and Sport" in terms of increasing expenditures on the maintenance of municipal institutions, including the payment of wages to employees of the budget sector. This sector saw an increase of 3.2 billion rubles or 16.4%.
State duty revenues also saw a growth of 0.2 billion rubles or 2.6 times. As of July 1, 2025, these expenditures were implemented in the amount of 18.3 billion rubles or 51.5% of the planned appropriations.
However, it is important to note that the Russian economy is facing stagnation or recession in 2025, with declining oil prices and sanctions impacting overall revenue growth, including at local levels. The federal and regional budgets are under pressure due to high military spending and economic contraction in civilian sectors.
Despite these challenges, local authorities have some ability to determine alternative taxes for small businesses through a special taxation system or simplified tax system, with common tax rates around 15% as an alternative to profit and VAT taxes. Personal income tax for residents remains at a flat 13%, with some special higher rates for certain income types.
However, a detailed breakdown by municipal revenues and tax categories for H1 2025 is not provided in the available data. Further official budgetary or finance ministry reports would be needed for an exact breakdown. It is also worth mentioning that Moscow, as the largest regional economy, accounts for significant budget revenue and wealth concentration, but details on revenue changes by tax type in 2025 were not specified.
The highest level of implementation of these expenditures is in Uhta (65.1%), Troitsko-Pechorsky District (64.3%), and Pechora (61.3%). Expenditures from the funds of targeted inter-budgetary transfers from the republican budget are planned for 2025 at the level of 35.5 billion rubles.
In conclusion, while the macroeconomic environment in 2025 suggests constrained municipal revenue growth due to economic pressures and lower oil revenues, the municipal budgets in Russia have shown a modest growth in H1 2025. Further analysis and official reports are required to understand the specific drivers of this growth and the challenges faced by local authorities in managing their budgets.
- The increase in municipal revenues in the first half of 2025 can be credited to a boost in tax and non-tax revenues, as well as unconditional revenues to local budgets, particularly contributions under the Simplified Tax System.
- Despite the challenges posed by Russia's economic stagnation and declining oil prices, local authorities have the option to adjust taxes for small businesses through special taxation systems or the Simplified Tax System, which usually has common tax rates around 15%.
