THE SITUATION WITH CONSOLIDATED BUDGETS OF THE SUBJECTS OF THE RUSSIAN FEDERATION IN 2017: THE POSSIBILITY OF FORMING A NEW DEVELOPMENT MODEL

Abstract

The formation of economic policy, aimed at the socio-economic development and the increase of the level and quality of life of the population requires active involvement of the subjects of Federation in this process. Economic recovery in 2017 resulted in the growth of revenues of consolidated budgets of the subjects of Federation. Property tax revenues, especially property taxes paid by individuals, increased most significantly compared with the last year’s figures. The increase of the tax burden occurred together with the real incomes’ decrease. The increase of budget expenditures followed the revenue growth, but the structure of expenditure changed. Health expenditures were reduced. Some increase in the expenditures of the regional funds of the state medical insurance did not compensate the fall down of this kind of budget expenditures. The health expenditures’ drop in some regions was critical. The funding of education practically hasn’t increased. At the same time the expenditures for the national economy sufficiently raised mainly via the growth of the road funds’ expenditures. Subjects of Federation managed to decrease in 2017 expenditures for the public and municipal debt service, however, the overall deficit of their budgets has increased.