Three-quarters of Russia's regions have become poorer during the war with Ukraine

In 65 out of 85 regions of Russia, the real income of budgets by the end of 2025 was lower than in 2021. In 52 subjects, expenditures adjusted for inflation exceeded the figures from four years ago, leading to an increase in budget deficits. The main reasons for the decline in income are the reduction of federal transfers and a decrease in corporate profit tax revenues. The volume of non-repayable receipts decreased by 1.1 trillion rubles, and tax revenues from corporate income fell by 820 billion rubles. The largest reduction in real income was observed in Kemerovo Oblast (almost 39%), Vologda Oblast (34.5%), and Ingushetia (30.8%). In 51 subjects of the Russian Federation, corporate profit tax revenues decreased, with a nearly 79% drop in Kuzbass. Expenditure reductions occurred in only 33 regions, with the most significant cuts in Ingushetia (30%) and Kaliningrad Oblast (15.4%). In 76 out of 85 regions, real healthcare expenditures were cut, with funding for housing and communal services decreasing by 77% in Yakutia and 70% in Kuzbass. A crisis of non-payments is growing in Russia, with overdue business debts reaching 9 trillion rubles.

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