Investment in Moscow: Investment climate factors

Balanced and sustainable budget, low debt, transparent city procurement.

The Moscow budget revenues in 2016 amounted to 1,852.6 billion rubles (27.6 billion US dollars according to the average annual US dollar exchange rate of the Bank of Russia), and the expenses made 8 billion rubles. (25.9 billion US dollars), the budget surplus is 115.8 billion rubles.

Hide chart

Indicators of the Moscow budget in 2010-2016

Sources: Open budget of Moscow, Moscow Department of Finance, Rosstat, calculations of the Moscow City Investment Agency

The Moscow public debt in relation to GRP has decreased 3 times during the last five years: from 3.6% of GRP in 2010 down to 1.0% of GRP in 2015. For comparison, the same indicator is 11.7% in New York, 40% in Shanghai, and more than 100%. Singapore and Dubai.

Show chart

World cities' debt in 2015, % of GRP

Sources: Moscow Department of Finance, Hong Kong Government Budget, NYC Office of the Comptroller, Shanghai Audit Bureau (2014), Singapore Department of Statistics, Institute for International Finance, calculations of the Moscow City Investment Agency.

Moscow is taking well-directed efforts to increase the city budget sustainability, increasing the share of revenues from personal income and corporate property taxes, and reducing the budget revenue dependence on income tax, including in the oil and gas industry.

Show chart

Revenue structure of Moscow budget in 2011-2016, %

Source: Open Moscow budget.

Planned expenses of the Moscow budget in 2017 are 2,073 billion rubles. (35.6 billion US dollars according to the average US dollar exchange rate of the Bank of Russia since the early 2017). The main priorities of the Moscow Government include the transport system development, city residents social support, education and healthcare, a comfortable, high-quality, and convenient urban environment.

Show chart

Key areas of Moscow budget policy in 2017, billion rubles (%)

Source: Open Moscow budget.

In 2015, the volume of the Moscow city procurement to cover state and municipal needs (under Federal Law 44-FZ) reached almost 550 billion rubles. (9 billion US dollars according to the average annual rate of the Bank of Russia). The share of purchases from small businesses increased up to 20% (against 5% in 2011). The average number of bids per lot is 4.6 (with Russia's average of 2.6). At the year end 2016, Moscow topped the national government procurement transparency ranking of the Russian regions.

Show chart

Volume of the Moscow city procurement in 2010-2015, billion rubles

Sources: Rosstat, Moscow Department for Economic Policy and Development.

Indicators of the Moscow budget in 2010-2016

Sources: Open budget of Moscow, Moscow Department of Finance, Rosstat, calculations of the Moscow City Investment Agency

World cities' debt in 2015, % of GRP

Sources: Moscow Department of Finance, Hong Kong Government Budget, NYC Office of the Comptroller, Shanghai Audit Bureau (2014), Singapore Department of Statistics, Institute for International Finance, calculations of the Moscow City Investment Agency.

Revenue structure of Moscow budget in 2011-2016, %

Source: Open Moscow budget.

Key areas of Moscow budget policy in 2017, billion rubles (%)

Source: Open Moscow budget.

Volume of the Moscow city procurement in 2010-2015, billion rubles

Sources: Rosstat, Moscow Department for Economic Policy and Development.