Uneven economic growth in Russia's regions: causes and solutions

The article examines the causes and consequences of uneven economic growth in the regions of the Russian Federation, as well as the mechanisms of equalization of regional development. Based on the analysis of data on the record deficit of regional budgets (1.5 trillion rubles in 2025 with a forecast of growth to 1.7–1.9 trillion rubles in 2026), differentiation of tax revenues, unemployment (from 0.8% in Moscow to 26.1% in Ingushetia) and industrial production (from +23.5% in Chukotka to -21.8% in North Ossetia), the key factors of regional differentiation are identified. Special attention is paid to the structural problems of the system of inter-budgetary relations, the concentration of tax revenues at the federal level (100% VAT and mineral extraction tax on hydrocarbons), as well as equalization tools such as subsidies to equalize budget security (indexation not lower than the inflation rate), the «infrastructure menu» (853.9 billion rubles for infrastructure loans) and individual programs socio-economic development. Based on empirical data, two tables are presented that characterize the differentiation of regions by key economic indicators and government support measures. It is concluded that it is necessary to reform the system of inter-budgetary relations with a revision of the standards for the distribution of key taxes in favor of regions and municipalities.

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Publication Details

Journal
Journal of Monetary Economics and Management
Published
2026-06-25
DOI
https://doi.org/10.26118/2782-4586-2026-504-511
Primary Topic
Socioeconomic and Demographic Analysis
Type
article
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article

Uneven economic growth in Russia's regions: causes and solutions

Светлана Гурфова, Alaudin Chilaev, Ibragimhalil Ashabaliev
Journal of Monetary Economics and Management
Socioeconomic and Demographic Analysis
article

Uneven economic growth in Russia's regions: causes and solutions

Светлана Гурфова, Alaudin Chilaev, Ibragimhalil Ashabaliev
article en

Abstract

The article examines the causes and consequences of uneven economic growth in the regions of the Russian Federation, as well as the mechanisms of equalization of regional development. Based on the analysis of data on the record deficit of regional budgets (1.5 trillion rubles in 2025 with a forecast of growth to 1.7–1.9 trillion rubles in 2026), differentiation of tax revenues, unemployment (from 0.8% in Moscow to 26.1% in Ingushetia) and industrial production (from +23.5% in Chukotka to -21.8% in North Ossetia), the key factors of regional differentiation are identified. Special attention is paid to the structural problems of the system of inter-budgetary relations, the concentration of tax revenues at the federal level (100% VAT and mineral extraction tax on hydrocarbons), as well as equalization tools such as subsidies to equalize budget security (indexation not lower than the inflation rate), the «infrastructure menu» (853.9 billion rubles for infrastructure loans) and individual programs socio-economic development. Based on empirical data, two tables are presented that characterize the differentiation of regions by key economic indicators and government support measures. It is concluded that it is necessary to reform the system of inter-budgetary relations with a revision of the standards for the distribution of key taxes in favor of regions and municipalities.

Journal of Monetary Economics and Management
Chechen State University (RU), Dagestan State University (RU)
Decent work and economic growth
Openalex Percentile: Top 5%
Socioeconomic and Demographic Analysis
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