Inequality of Arctic Regions. Part I: Fiscal Capacity and Autonomy

This study evaluates disparities in the fiscal capacity of Arctic regions and the extent of their budgetary autonomy. Using open-source data, it compares per capita expenditures of consolidated regional budgets across key policy areas, including education, healthcare, housing and utilities, and social policy, while also assessing regional reliance on federal transfers and levels of debt.

The analysis examines the dynamics and comparability of these indicators over 2020–2023 in the context of national objectives aimed at reducing disparities in regional fiscal capacity.

The research was conducted by the PORA as part of broader efforts to evaluate the implementation of state policy in Arctic territories. It addresses the need for a comparable assessment of regions’ capacity to finance mandatory expenditures and development projects amid high service provision costs and significant differences in tax bases and intergovernmental transfers.

The study draws on a comparable dataset of open information on regional budget execution for 2019–2023, published by the Federal Treasury and aggregated in the open financial profiles of Russia’s constituent entities. Its objective is to assess disparities in fiscal capacity across Arctic regions and their degree of fiscal autonomy, as well as to evaluate whether existing budgetary mechanisms support the implementation of socio-economic development programs under Arctic conditions. The analysis compares per capita expenditures in key spending areas and indicators of regional dependence on intergovernmental transfers. Results are presented through rankings, comparative tables, and charts.

A key limitation of the analysis stems from the use of consolidated regional budget data, which does not allow for the identification of Arctic municipalities within regions where only part of the territory belongs to the Arctic Zone. The authors emphasize the need for further analysis at the level of local budgets. From an applied perspective, the study provides a basis for monitoring progress toward national objectives of reducing fiscal disparities and for informing discussions on mechanisms to strengthen the fiscal autonomy of Arctic regions.