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TERRA ECONOMICUS

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  • Sectoral composition of tax revenue stress in Russia and its regions amid the pandemic and new sanctions

Sectoral composition of tax revenue stress in Russia and its regions amid the pandemic and new sanctions


TERRA ECONOMICUS, , Vol. 22 (no. 4),

The study explores the changing sectoral structure of tax revenue stress in Russia in the context of the pandemic and new sanctions. We aim to understand the dynamics of the tax revenue stress index for the main types of economic activity and identify the contribution of different sectors to the overall tax revenue stress in both Russia and its regions. To achieve this, we have deflated tax revenues and applied our own methodology to assess tax revenue stress and decompose it by sources. The results show that the Ural and Far Eastern Federal Districts have the highest average tax revenue stress and its greatest variability. During the period of new international sanctions against Russia, tax revenue stress increased significantly in the North-Western Federal District, while it rose the least in the Central Federal District. The highest average tax revenue stress was observed in the mining sector, while the lowest was in the construction sector. The mining sector contributed the most to tax revenue stress in Russia and most federal districts. It also played a major role in increasing stress during both the pandemic and the period of new sanctions. Finance and insurance also significantly contributed to the rise in tax revenue stress during these periods. The manufacturing sector played a different role: it acted as a stress damper during the pandemic, but contributed significantly to tax revenue stress during the period of new sanctions. The trade sector also proved to be an important damper, reducing tax revenue stress during both periods of shocks. Most regions experienced a higher average level of stress during the period of new sanctions compared to the pandemic. Under the sanctions, the manufacturing sector’s contribution to tax revenue stress increased significantly in a number of regions. This study could be helpful for federal and regional regulators in managing tax revenues during the times of new shocks.
Citation: Malkina M.Yu., Balakin R.V. (2024). Sectoral composition of tax revenue stress in Russia and its regions amid the pandemic and new sanctions. Terra Economicus 22(4), 101–118 (in Russian). DOI: 10.18522/2073-6606-2024-22-4-101-118
Acknowledgment: The research was funded by the Russian Science Foundation, project № 23-78-10160, https://rscf.ru/ project/23-78-10160/


Keywords: tax revenues; types of economic activity; stress index; regions of the Russian Federation; federal districts; COVID-19 pandemic; Anti-Russian sanctions; decomposition

JEL codes: H2, E3

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606