The war against Ukraine has impoverished three-quarters of Russia’s regions — intelligence
Kyiv • UNN
In 65 of Russia’s 85 regions, real budget revenues in 2025 were lower than in 2021. The main reasons are reduced federal transfers and a decline in corporate income tax revenues.
In 65 of Russia’s 85 regions, real budget revenues at the end of 2025 were lower than before the start of the full-scale war—in 2021. At the same time, in 52 regions, inflation-adjusted expenditures exceeded the level of four years ago. This became one of the factors behind the rapid growth of budget deficits. The Foreign Intelligence Service reports this, UNN writes.
The main causes of the decline in revenues were cuts in federal transfers and lower receipts from corporate income tax. The volume of non-repayable revenues in real terms decreased by approximately 1.1 trillion rubles, while tax revenues from companies’ profits fell by another 820 billion rubles. The reduction in transfers is linked to the completion of some targeted programs and the redistribution of funds at the federal level. The decline in corporate income tax resulted from worsening financial performance among large enterprises, particularly in the coal and metallurgical industries
Budget revenues fell the most in Kemerovo Oblast—by almost 39%, Vologda Oblast—by 34.5%, and Ingushetia—by 30.8%.
Overall, in 85 regions, real corporate income tax revenues fell by 16.6%. A decline was recorded in 51 constituent entities of the federation. The worst situation was in Kuzbass, where these revenues collapsed by almost 79%. They fell by more than 60% in Belgorod, Kursk, Lipetsk, Vologda, Murmansk, and Orenburg oblasts, as well as in Karelia and Khakassia.
Despite revenue problems, most regions were unable to significantly cut expenditures. In 52 regions, real spending remained higher than in 2021. Expenditures decreased in only 33 constituent entities. The largest budget cuts were made in Ingushetia—by 30%, Kaliningrad Oblast—by 15.4%, Chechnya—by 14.6%, and Karelia—by 14.5%.
Social spending came under attack. In 76 of the 85 regions, real healthcare expenditures were reduced. Funding for housing and utilities was significantly cut: in Yakutia—by approximately 77%, and in Kuzbass—by 70%. Education was also affected by the cuts. In real terms, less funding was allocated, in particular, by Kursk, Arkhangelsk, Astrakhan, and Kemerovo oblasts, Komi, Dagestan, Chechnya, Khakassia, Buryatia, and Ingushetia.