Wed. Oct 28th, 2020

Moscow’s budget for the first nine months of this year was executed with a deficit of 186 billion rubles, follows from the Moscow Department of Finance data. With expenditures for three quarters at 2.032 trillion rubles. Revenues amounted to 1.846 trillion. A year earlier, in the “dock era,” the capital’s treasury for nine months, on the contrary, was in surplus – 202 billion rubles.

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However, the lag in income from last year’s indicators does not look dramatic now – only minus 2.5% from the level of nine months of 2019. As the economy recovers from the quarantine “hibernation,” the capital’s budget is gradually reducing this lag in income. On August 1, 2020, it was 6.3%, on September 1 – 4.8%, compared to the previous year’s corresponding periods.

Separately, Moscow’s tax revenues in January-September amounted to 1.616 trillion rubles. As before, these are mostly just two taxes – on income and personal income.

In total, they accounted for almost 85% of all fiscal receipts. At the same time, the dynamics within this pair is multidirectional (see chart). Due to a relatively stable situation in the Moscow labor market, personal income tax has grown, despite all the difficulties of the period of restrictions – by 6.2% compared to the same period last year, to 773 billion rubles.

On the contrary, due to a decrease in economic activity and consumer demand, income tax collections have significantly decreased – by 10.3% to 599 billion rubles.

The third major item of Moscow revenues – non-tax revenues also showed negative dynamics. According to the three-quarters results, their drop was 14.3%, to 164 billion rubles. The Finance Department believes that this is due, among other things, to business support measures at the expense of the Moscow budget – their total cost has already reached 90 billion rubles.

As for the execution of expenditures for nine months in 2.032 trillion rubles, this is immediately 20% more than 1.691 trillion rubles – the fixed amount at the end of the same period last year. Actually, due to, among other things, this noticeable increase in expenditures, the surplus of the capital’s budget this year was replaced by a deficit.

In particular, spending on the capital health care state program immediately doubled – up to 431 billion rubles. (Considering the funds of the compulsory medical insurance system, 592 billion rubles were spent on healthcare in Moscow in January-September 2020).

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