Growth point: how IT industry contributes to the Moscow economy

In 2019, tax and non-tax revenues contributed to the city budget by IT enterprises and companies increased to RUB 140.1 billion. This is 15.4 percent more than in 2018.

Income tax revenues have increased by 22.1 per cent compared to 2018 and made up RUB 57.5 billion. As for personal income tax, IT companies have transferred RUB 74.6 billion to the Moscow budget, which is 14.7 per cent more than in 2018.

In 2019, IT companies were consistently building their production, innovation, and HR capacity, increasing revenue, net profit, and investment in the development of new projects.

At the end of 2019, the share of the IT industry in the total revenue of Moscow's budget reached 5.5 per cent. In 2017, it was 4.9 per cent, with 5.3 per cent in 2018.

'The increase in the share of the IT industry in the Moscow economy, both absolute and relative, indicates an ongoing rebuilding of its structure and the formation of new innovative growth points,' said Yelena Zyabbarova, Minister of the Moscow Government and Head of the Finance Department.

According to Yelena, the IT industry's development is still one of the priorities of the Moscow Government's economic policy.

City administration has created favourable conditions for growth of IT enterprises and companies: the system of tax benefits and subsidies, assistance in business organisation, business relations and new markets for products, including foreign ones. The Moscow Innovation Cluster has a high profile. It has brought together 700 enterprises and organisations, as well as educational and scientific institutions.

'The Moscow Government is one of the major consumers of high-tech products and services. In 2020, RUB 114.2 billion is to be channelled to the state program 'Development of the Digital Environment and Innovations'. The funds will be used for current efforts to create an urban digital environment to affect nearly all spheres of city life: healthcare, education, transport, security, municipal infrastructure, urban planning and provision of public services,' Yelena Zyabbarova added.

Moscow is one of the world’s leaders in terms of digitisation. Moscow tops the ranking of the world cities for the development of e-government, compiled by the UN.