The growth of the Republic of Crimea’s budget graphically illustrates the strides made there in recent years. The main goal has been to increase the republic’s own sources of revenue, and not even tough sanctions have been able to hold it back. The numbers tell the tale of how the consolidated budget has grown since reunification with Russia.
Revenue
In 2014-2023, the consolidated budget of the Republic of Crimea took in 1.9 trillion roubles in total revenue.
The tax and budget laws of the Russian Federation came into force in Crimea on January 1, 2015, after which revenues began growing.
The consolidated budget of Crimea received:
95.8 billion roubles in 2015;
116.8 billion roubles in 2016;
160.4 billion roubles in 2017;
175.5 billion roubles in 2018;
192.7 billion roubles in 2019;
225 billion roubles in в 2020;
218.1 billion roubles in 2021;
283.7 billion roubles in 2022;
322 billion roubles in 2023.
Compare these figures to the 38.9 billion roubles that the consolidated budget of Crimea received from Ukraine in 2013.
Crimea was a subsidised region but over the past decade, the revenue of its consolidated budget has increased considerably and in 2019 it was removed from the list of highly subsidised regions.
Under the programme to improve public finances, the republic is bringing out from the shadows the taxable income of employers that used to pay wages in envelopes and delay transferring personal income tax withholdings to the budget. As a result, during the nine years under Russian tax legislation, the collection of personal income tax increased 150 percent
From 15.1 billion roubles in 2015 to 38.2 billion roubles in 2023
Medium-sized and small businesses form the backbone of the Crimean economy. They receive various forms of support from the regional government.
Lower tax rates have been applied to special tax regimes since 2015 to encourage business activity.
In the past 10 years, the number of companies (legal entities) grew from 15,328 in 2014 to 30,439 in 2023; while the number of sole proprietors increased from 21,330 in 2014 to 63,665 in 2023.
Since July 1, 2020, the republic has joined the pilot programme for the professional income tax.
As of January 1, 2024, 127,200 self-employed persons were registered in Crimea – a 53.6-percent increase over the beginning of 2023.
The growth of business activity has increased revenue from taxpayers that have chosen special tax regimes that are the most attractive for business people.
In 2015, the consolidated budget received 1.5 billion in revenue from special tax regimes compared to 8.6 billion roubles in 2023.
Owing to the lower tax burden on small and medium-sized businesses, the amount of tax revenue from special tax regimes grew 480 percent in nine years.
Spending
Crimea’s consolidated budget included 1.9 trillion roubles in spending from 2014 to 2023.
Budget expenditures:
110.3 billion roubles in 2014;
100.2 billion roubles in 2015;
131.3 billion roubles in 2016;
161.7 billion roubles in 2017;
175.5 billion roubles in 2018;
192.4 billion roubles in 2019;
223.6 billion roubles in 2020;
223.5 billion roubles in 2021;
284.7 billion roubles in 2022;
321.8 billion roubles in 2023.
Compare these spending levels to the 35.8 billion roubles Ukraine spent on Crimea in 2013.
From 2014 to 2023, the following investments were made from the consolidated budget:
751.4 billion roubles for the national economy;
344.4 billion roubles for education;
294.3 billion roubles for social policy;
189.7 billion roubles for healthcare;
166.8 billion roubles for housing and utilities;
54.7 billion roubles for culture and filmmaking;
17.2 billion roubles for physical fitness and sports;
12.3 billion roubles for national security and law enforcement;
9.3 billion roubles for mass media;
4.7 billion roubles for environmental protection;
7.9 billion roubles for national defence;
72 billion roubles for general government issues;
172 million roubles for servicing state and municipal debts.
Sergei AKSYONOV, Head of Crimea:
“When the republic has full coffers, Crimea’s socioeconomic development is ensured. So much depends on this – the continuation of major social programmes and projects, the growth of production and the stable performance of all economic branches.
We have achieved big things in just a decade. In 2014, the revenue of the republican budget exceeded 19 billion roubles, compared to nearly 78 billion roubles in 2023. Last year, all municipalities exceeded revenue projections.
The budget of the Republic of Crimea for 2024 continues to be socially oriented. It spends over 31 billion roubles on social policy alone.
Our main goal is to maintain growth rates and continue improving indicators.”
Irina KIVIKO, Deputy Prime Minister and Finance Minister of the Republic of Crimea:
During the decade it has been back with Russia, the Republic of Crimea has seen a steady trend of growing tax and other revenue in its consolidated budget. From 2015 to 2023, its own revenue base grew by 230 percent and in 2019, it was taken off the list of highly subsidised regions.
The creation of a free economic zone combining a host of benefits, discounts and other measures to promote business activity ultimately led to higher budget revenue in Crimea.
Small and medium-sized companies play a big role in the republic’s economy and receive various forms of support from the Crimean government.
The past decade has seen the number of companies registered in the Uniform Register of Legal Entities double and the number of sole proprietors registered in the Uniform Register of Individual Entrepreneurs triple.
