Moscow’s budget for 2026–2028 will be socially oriented

Moscow Mayor Sergei Sobyanin has submitted to the Moscow City Duma a draft law of the city of Moscow “On the Budget of the City of Moscow for 2026 and the Planning Period for 2027 and 2028”. The formation of the draft budget was based on the strategic plans for the development of the capital’s economy, infrastructure and social sphere for the period up to 2030, the expected results of implementing the 2025 budget and the general forecast for Moscow’s socio-economic development over the next three years.

In the forthcoming three-year period it is planned to increase budget revenues from all main sources.

Stable growth of revenues in 2026 and the planning period for 2027 and 2028 will be facilitated by the continued implementation of measures to promote the integrated development of urban infrastructure, the stimulation of investment activity, to support entrepreneurship and the business environment, to create high-tech industries, to promote employment and to boost labor productivity. This approach ensures the formation of a modern diversified economy in which high-tech production, IT innovations, scientific research and services work together organically.

The formation of the expenditure part of Moscow’s budget for 2026 and the planning period for 2027 and 2028 was carried out in accordance with the strategic goals for the city development for the periods until 2030.

The main objectives of the budget policy for the coming three years will be:

— to ensure reliable social protection for Moscow residents;

— to improve the quality and accessibility of services to the population;

— to implement large-scale plans for the development of urban infrastructure;

— to support the real sector of the economy in order to ensure technological sovereignty and leadership in critical high-tech industries;

— to create a comfortable and safe urban environment.

The envisaged budgetary allocations ensure the implementation of 13 state programs by the city government, the activities of which are aimed at achieving the strategic goals for the capital’s development.

Expenditures on the implementation of state programs by of the City of Moscow in the draft budget for 2026 and the planning period for 2027 and 2028

In 2026, social expenditures (allocations for social support, healthcare, education, culture, sports and other social activities, excluding payment for medical care from the Mandatory Healthcare Insurance Fund) will account for half of budgetary expenditures, or 3.2 trillion rubles, and the growth of social expenditures will be 15 percent.

The draft budget provides funds for the indexation of social payments, increase of the wage fund for public sector employees, further improvement in the quality of public services, implementation of projects to create new industries, and development of urban infrastructure.

The draft budget of the city of Moscow for 2026 allows for a deficit of 447.6 billion rubles, and this is expected to decrease progressively in 2027 and 2028. The actual amount of the deficit may be reduced as the budget is implemented, due to savings during tender procedures and, potentially, as a result of additional revenues.

The draft budget provides for the possibility of attracting loans of up to 205 billion rubles in loan funding each year. The actual volume of borrowings will be determined by the results of the budget’s implementation and its need for additional sources of financing. Moscow’s debt burden (ratio of public debt to revenues) is at a low safe level.

The City’s budget system continues to be sustainable and stable.