Regional Budgets Outrun Federal Budget
Russia’s Federal Tax Service (FNS) summed up the 2006 results yesterday. Three trillion rubles was collected for the federal budget, and 2.747 trillion rubles to regional budgets. FSN collected 5.7 trillion rubles, or $217, in total. Comparing to 2005, taxpayers brought by quarter more to the state budget -- the growth of revenues made up 25 percent. Revenues to regional budgets grew by 31 percent.
The difference between growth of revenues to federal and regional budgets is explained by different structure of incomes in the center and in regions. Six major Russian taxes, together bringing over 80 percent of all revenues, are divided between federal and regional budgets in the following way: value added tax, uniform social tax, and mineral extraction tax go to the center, while income tax, excise duties, and profits tax were given to regions.
FNS had problems with taxes to the federal budget in 2006. VAT revenues grew by 4 percent only, considering the 7-percent GDP growth and 9 percent of inflation. UST increased by 18 percent, which is also insufficient taking into account the growth of citizens’ incomes. The federal budget was saved by MET only, growing by 28 percent.
Regional budgets had less problems. Oil prices, economic growth, and stock market growth increased income tax revenues by 40 percent. Citizens paid 32 percent more than in 2005. Only excise duties disappointed FNS, growing by 11 percent only, as a consequence of EGAIS experiments at alcohol market.
www.kommersant.com
All the Article in Russian as of Feb. 01, 2007
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