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Sustainability of regional budgets is beyond doubt

Author

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  • Ilya Sokolov

    (Gaidar Institute for Economic Policy)

Abstract

The positive results of regional budgets execution for the first seven months of 2025 include maintaining an acceptable level of balance and debt burden. However, the situation is likely to deteriorate somewhat by the end of the year due to the continuing decline in income tax revenues and faster-than-expected growth in expenditures. To balance their budgets, regions may need either additional financial assistance from the federal government or a relaxation of restrictions (controls) to expand commercial borrowing.

Suggested Citation

  • Ilya Sokolov, 2025. "Sustainability of regional budgets is beyond doubt," Monitoring of Russia's Economic Outlook. Trends and Challenges of Socio-Economic Development (In Russian), Gaidar Institute for Economic Policy, issue 21, pages 1-4, September.
    • Handle: RePEc:gai:monreo:monreo-2025-21-1452
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    File Function: Revised Version, 2025
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    Keywords

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    JEL classification:

    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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