Growing economic problems due to the war and sanctions have hit the financial stability of Russian regions. By the end of 2025, the combined regional budget deficit had grown 3.6 times compared to the previous year, reaching 1.478 trillion rubles. This figure became a record high for the entire period of observation. This follows from calculations by the ACRA agency based on data from the Unified Portal of the Budget System, Kommersant reports.
The sharp increase in the deficit occurred because the regions, with total revenues of 22.6 trillion rubles (up 4% from 2024), spent 24.1 trillion rubles (up 9%). As a result, 74 regions faced a budget "hole," compared to 50 the previous year. In absolute terms, Moscow had the largest deficit (299 billion rubles). The Yamalo-Nenets Okrug (84 billion rubles) and Khanty-Mansiysk Okrug (72 billion rubles) follow, far behind.
While revenues from personal income tax (by 12%, or 732 billion rubles), total income tax (by 11%, or 119 billion rubles), and property tax (by 6%, or 99 billion rubles) increased, these regions experienced a decline in their key corporate income tax (by 9%, or 493 billion rubles). Due to the deterioration of companies' financial results last year, corporate income tax collections fell in 55 regions. The most significant declines were in regions with economies dependent on the extraction of minerals, which have become cheaper. Specifically, in Komi, the decline in such revenues was 50%, in Orenburg Oblast 40%, and in Yamalo-Nenets Autonomous Okrug 39%. In absolute terms, the budgets of the Tyumen Region (minus 70 billion rubles), the Yamalo-Nenets Autonomous Okrug (53 billion), and the Khanty-Mansi Autonomous Okrug (35 billion) suffered the largest losses.
The main source of deficit coverage was the remaining temporarily available funds in budget accounts. Collectively, the regions allocated almost 1 trillion rubles of the previously accumulated 2.9 trillion rubles for these purposes, financing approximately two-thirds of the deficit in this way. Another 30% was covered through bank loans (449 billion rubles), and the remainder through bonds and other sources.
Previously, the Ministry of Finance reported an increase in the federal budget deficit to 5.645 trillion rubles by the end of 2025. Compared to 2024, the "hole" in the treasury has increased 1.6 times, and in relative terms, at 2.6% of GDP, it set a record since 2020 (3.8% of GDP). The day before, on February 25, Russian Prime Minister Mikhail Mishustin announced that he, along with Russian President Vladimir Putin and Central Bank Governor Elvira Nabiullina, had spent "many hours" discussing a solution to the Russian budget deficit. Mishustin did not specify whether a solution had been found or what measures had been discussed.
Meanwhile, regions have begun cutting their adopted 2026 budgets. For example, Primorsky Krai authorities reduced spending by 3 billion rubles at a meeting on February 25. According to Vera Shcherbina, head of the regional government, funding for educational institutions, culture, tourism, and agriculture was cut. Prior to this, the Chelyabinsk Region had cut its budget by 2.2 billion rubles.
The sharp increase in the deficit occurred because the regions, with total revenues of 22.6 trillion rubles (up 4% from 2024), spent 24.1 trillion rubles (up 9%). As a result, 74 regions faced a budget "hole," compared to 50 the previous year. In absolute terms, Moscow had the largest deficit (299 billion rubles). The Yamalo-Nenets Okrug (84 billion rubles) and Khanty-Mansiysk Okrug (72 billion rubles) follow, far behind.
While revenues from personal income tax (by 12%, or 732 billion rubles), total income tax (by 11%, or 119 billion rubles), and property tax (by 6%, or 99 billion rubles) increased, these regions experienced a decline in their key corporate income tax (by 9%, or 493 billion rubles). Due to the deterioration of companies' financial results last year, corporate income tax collections fell in 55 regions. The most significant declines were in regions with economies dependent on the extraction of minerals, which have become cheaper. Specifically, in Komi, the decline in such revenues was 50%, in Orenburg Oblast 40%, and in Yamalo-Nenets Autonomous Okrug 39%. In absolute terms, the budgets of the Tyumen Region (minus 70 billion rubles), the Yamalo-Nenets Autonomous Okrug (53 billion), and the Khanty-Mansi Autonomous Okrug (35 billion) suffered the largest losses.
The main source of deficit coverage was the remaining temporarily available funds in budget accounts. Collectively, the regions allocated almost 1 trillion rubles of the previously accumulated 2.9 trillion rubles for these purposes, financing approximately two-thirds of the deficit in this way. Another 30% was covered through bank loans (449 billion rubles), and the remainder through bonds and other sources.
Previously, the Ministry of Finance reported an increase in the federal budget deficit to 5.645 trillion rubles by the end of 2025. Compared to 2024, the "hole" in the treasury has increased 1.6 times, and in relative terms, at 2.6% of GDP, it set a record since 2020 (3.8% of GDP). The day before, on February 25, Russian Prime Minister Mikhail Mishustin announced that he, along with Russian President Vladimir Putin and Central Bank Governor Elvira Nabiullina, had spent "many hours" discussing a solution to the Russian budget deficit. Mishustin did not specify whether a solution had been found or what measures had been discussed.
Meanwhile, regions have begun cutting their adopted 2026 budgets. For example, Primorsky Krai authorities reduced spending by 3 billion rubles at a meeting on February 25. According to Vera Shcherbina, head of the regional government, funding for educational institutions, culture, tourism, and agriculture was cut. Prior to this, the Chelyabinsk Region had cut its budget by 2.2 billion rubles.
