Moscow is the largest metropolitan area in the Russian Federation. By the size of the economy and gross domestic product, it is also a leader. The city is constantly growing, absorbing more and more settlements that are on the way of its expanding borders. In contrast to the regions, all areas of the economy are developed here, and not just industrial or tourism.
The capital's share in the country's economy in 2016 amounted to 16.2%. The standard of living in Moscow is the highest among the regions of the country. In the city there is transport overload, traffic jams often occur. Many come here to work from the surrounding settlements or are labor migrants.
In the Moscow economy , the service sector plays an important role. Tourism and trade are also of great importance. The value of the gross product is truly great. For example, in 2016 it amounted to 13.9 trillion rubles, and in 2015 exceeded 14 trillion rubles.
The budget of the city of Moscow is equal in size or even exceeds that in all of Ukraine. Funds from all over the country flock here. Moscow is the most monetary city in Russia. This allows you to implement expensive programs that are expendable budget items of this city.
Monocentrism of the Russian economy
The trend towards dominance in economic and other activities began to develop after the collapse of the USSR. Now it is the largest financial and resource management center in Russia. Branches of Moscow enterprises and universities are opening throughout the country. The gap between the standard of living in the capital and many Russian regions is very wide. The city has over half of the banks available in the country. The offices of most large companies operating in various parts of the Russian Federation are located here.
Directly in the capital are enterprises of the machine - building complex, instrument-making, machine-tool, alloy manufacturing, as well as objects of production of light, chemical, and printing products. Gradually, more and more production facilities are being transferred to the regions, which may be explained by environmental considerations, lack of land for construction and cheaper labor at a distance from the capital.
Moscow's place in the global economy
According to the forecast of the region’s economic development, by 2020 Moscow will take 23rd place in the economic ranking of the world's largest urban agglomerations. Economic growth will be 4% per year, and average income per person will almost double.
The role of industry in the capital budget
Moscow is the largest production center in Russia. And this despite the fact that industry makes a small contribution to the overall size of the capital’s economy. A large number of highly qualified specialists working in the field of high-tech industries are concentrated here. Among other things, such products as radio electronics, optical equipment, the manufacture of equipment for aviation and space flights, precision instruments, oil products, reactors, cars, defense equipment, etc. are produced.
The role of trade in the Moscow economy
Trade is important in the economic life and GDP of Moscow. There are hundreds of shopping centers with a total area of many thousands of square meters. Now there is a tendency to replace markets with supermarkets. In general, the development of metropolitan trade is on the way to consolidation of outlets with an increase in the share of large shopping complexes.
The Moscow sphere of trade is a good object for investment. This is also understood by foreign companies that create their own points with more favorable conditions for buyers.
The role of tourism in the economy and budget
More than 4 million tourists come to Moscow every year. The city has created several hundred hotels with a total number of rooms in the region of 50,000. By 2025, they plan to increase this figure to 138 thousand rooms.
City budget
The budget of Moscow is so large that it is approximately equal to the budget of Ukraine, and now it probably exceeds it. However, there are cities in the world where it is even higher. Among them is New York.
In the 21st century, budget revenues were constantly growing. The peak was in 2015. In 2006, it amounted to 801 billion rubles, and in 2015 - 1486 billion rubles. The largest contribution to budget expenditures is made by the economy and housing and communal services. They accounted for 23 and 27%, respectively. Education is in third place - 15.5%, in the fourth - social sphere (11.9%), and in fifth - medicine and sports (9%).
Moscow City Budget Law
The initial form of the budget law was adopted in this city on November 29, 2017, No. 47. The execution of the budget of the city of Moscow is regulated by applicable law. The budget consists of various items. Revenues are determined in accordance with the current budget legislation of the Russian Federation. This includes, in particular, taxes and fees. The following are used as the legal basis for adopting the budget: 28, 29, 30, 31. Article 32 has been deleted. Due to the budget of the city of Moscow, various infrastructure and social programs are being implemented. One of the most significant at present is the replacement of dilapidated housing with new buildings and major repairs of housing and communal services.
Moscow budget for 2017
The decision on the adoption of the budget was signed by Sergei Sobyanin, who is the mayor of Moscow. For replenishment, it was proposed to take measures to reduce debts when renting territories, taxes, non-residential premises.
The budget revenues of the city of Moscow in 2016 were to amount to 1 trillion 599 billion rubles, and expenses - 1 trillion 647 billion rubles. In 2017, these indicators were planned at the level of: 1 trillion 647 billion rubles. and 1 trillion 681 billion rubles, respectively. In 2018, revenues were estimated at 1 trillion 693 billion rubles, and expenses - 1 trillion 747 billion rubles.
The budget deficit for these three years should have been: 3; 2.1 and 3.2 percent, respectively.
The maximum debt of the capital is set at: 188.7 billion in 2016, 101.85 billion in 2017 and 75.8 billion in 2018.
Both income and expenses under the plan should have increased. The greatest attention was supposed to be paid to transport costs and social support of the population. Other important areas were planned to make education, medicine. For these purposes, subsidies from the budget of the city of Moscow should have been allocated.
The budget of the capital for 2018
In 2018, the budget revenues of the city of Moscow will be, according to the new plan, 2104 billion rubles., In 2019 - 2207 billion rubles., And in 2020 - 2317 billion rubles. In 2018, taxes will be of greatest importance. They will add 1885 billion rubles to the treasury.
Budget expenditures in 2018 will amount to 2327 billion rubles., In 2019 - 2344 billion rubles., In 2020 - 2430 billion rubles. In 2018, most of the funds (2129 billion rubles) will go to the implementation of state programs for the development of the capital.
Moscow budget and population income
The huge budget of the city of Moscow cannot but affect the size of the material wealth of the people living there. It is, of course, lower than in New York and other major cities of developed countries, but still pretty decent. Moreover, it is several times higher than in several other regions of the Russian Federation. The highest salary is among financiers. Followed by the institution of communication, trade. The lowest level is among employees of education, health, science and the social sphere. Slightly higher - in manufacturing and construction organizations.
Further development of the city of Moscow against the background of a gradual impoverishment of the regions threatens with serious social distortions and is already now a cause of discontent among a large number of Russian citizens.
Thus, the budget of the city of Moscow is a huge item of income and expenses, which tends to increase. This is connected not only with the size of the Russian capital, but also with the effect of monocentrism of the Russian economy, which, although to a lesser extent, is characteristic of many countries.