Russia’s 2023 Consolidated Budget Revenues Rise, While Oil-Driven Cycles Shape the Tax Mix
The consolidated budget of the Russian Federation posted a 7.7 percent increase in tax revenues in 2023, reaching 36.2 trillion rubles. This figure is reported against data compiled by the FinExpertiza network and cited by media outlets as a snapshot of the year for state finances. The growth rate, though perceptible, sits just above the pace of general inflation, which hovered around 7.42 percent, indicating that revenue gains were not outpaced by price rises and that the expansion in fees slowed in comparison with the first year after sanctions were imposed.
In the opening months of the year, January and February, the revenue picture was softer due to the oil embargo and price ceilings. As the country built out logistics to partner economies and rediscovered alternative routes for trade, the total revenue accumulation regained momentum and surpassed 2022 levels again, most notably by August. This pattern underscores how shifts in energy markets and sanctions impact the government’s ability to collect taxes over time.
Data from the Federal Tax Service illustrate a mixed trajectory within the tax mix. Oil and gas revenues declined by about 13.6 percent, a reflection of swings in global energy markets and weaker hydrocarbon prices. Mineral extraction taxes also fell, by 11.1 percent, to around 9.5 trillion rubles. Yet non-oil and gas revenues rose markedly, increasing by 16 percent and contributing roughly 3.8 trillion rubles to the overall total. These dynamics emphasize the stabilization role that non-oil sectors can play as the energy sector faces volatility.
Within the overall tax structure, the mineral extraction tax accounted for more than a quarter of the total collections, exceeding 10 trillion rubles. The next largest contributor was income tax, which climbed by 25 percent, reaching approximately 8 trillion rubles. The year also saw the business sector paying an excess profits tax in the vicinity of 315.5 billion rubles, a reflection of windfall gains in certain periods and a tool for channeling some of that revenue into the broader budgetary framework.
Value-added tax, generated domestically, contributed around 20 percent of revenues. Personal income tax accounted for about 18 percent, property taxes around 5 percent, and a smaller share, roughly 4 percent, came from personal income receipts in other categories. These breakdowns highlight how the tax system relies on a mix of consumption, earnings, and property-related levies to fund public spending.
Geographically, the most pronounced increases in tax receipts occurred in several major urban and regional centers. Moscow led the gains with a rise of around 1.95 trillion rubles, followed by significant upticks in St. Petersburg, the Moscow region, Sverdlovsk, and the Leningrad region. In contrast, wages dipped in oil and gas hubs such as the Irkutsk region, the Khanty-Mansi Autonomous Okrug, and Yakutia, signaling sectorally linked economic pressures that influence household income and consumption patterns.
Looking ahead, the Federal Tax Service signals that the income level is expected to be maintained at least at the current pace for 2024. The economy has reportedly adjusted to new economic realities, and the budget is gradually moving away from dollarized revenues. A notable trend is the growth of non-oil and gas tax collections, projected to rise by about 20 percent by 2021 within this framework, reflecting policy emphasis on diversifying revenue sources and strengthening domestic tax bases.
In public statements touching on fiscal strategy, Moscow’s administration highlighted the potential profitability of major fiscal projects aligned with the national budget. This underscores ongoing discussions about how strategic initiatives and capital projects might contribute to the budget’s long-term health while balancing macroeconomic risks and opportunities.
Overall, the 2023 data reveal a budget that remained resilient amid energy market volatility and geopolitical shifts. The trends point to a continued shift toward a broader tax base and a greater reliance on non-oil revenues as part of Russia’s ongoing fiscal realignment. The narrative of 2023 thus reads as a year of partial recovery, structural adjustment, and cautious optimism about future budget stability in the face of external pressures (FinExpertiza). This assessment aligns with the broader pattern of fiscal policy adapting to new realities while maintaining essential public services and investment momentum.