Healthcare, education, social aid: top priorities of the city budget announced

October 17, 2019
Municipal services

The Moscow Government Presidium approved the draft law 'On the Moscow Budget for 2020 and the Planning period of 2021 and 2022'. The document has already been submitted to the Moscow City Duma. 

The draft budget has been formed in the context of sustainable economic growth of 2 to 3% per year and low inflation at the annual level of 3.7%. City budget revenues are expected to increase by 8% in 2020, with a 9.5% annual growth expected in 2021 and 2022.

The increase in income is due to the expansion of the tax base through the development of Moscow economy, as well as higher business activity and labour expenses in the private and public sectors. 

Hinged on economic performance of individuals and legal entities, income tax, personal income tax and special tax regimes, tax revenues are to grow faster. 

Revenue base stability of the Moscow budget will be secured by deep sectoral diversification of the economy. Moscow has no budget-forming industries, and therefore revenues are evenly distributed across a wide range of activities.

At the same time, contribution of industries, namely financial and credit activities, IT and communications, research, trade, transport and others, developing due to the agglomeration effect and the quality of human capital, increases annually.

In addition, the SMEs' contribution to the budget revenue is steadily growing. This sector's revenues are expected to make up about 25% of budget income, which is 1.6 times higher than revenues from organisations, the major taxpayers. For comparison: in 2011, the share of SMEs made up about 10% of Moscow's budget revenues. 

The basic parameters of the Moscow draft budget for 2020 and for the planning period of 2021 and 2022 (RUB billion)















Including conditionally approved



Deficit (minus)




In terms of expenditures, the Moscow draft budget for 2020 and the planning period of 2021 and 2022 retains continuity with the budgets of previous years and is programmatic, social and investment one.

Programmatic budget

More than 90% of the budget expenditure will go for urgent urban programs for transport system, education, healthcare, culture development and others.

Expenditures on Moscow public programs in the draft budget for 2020 and the planning period of 2021 and 2022 (RUB billion) 



For three years


Transport system



Social support of residents









Including means of compulsory health insurance



'Dwelling' Program



Utility and engineering infrastructure and energy conservation



Digital environment and innovation



Urban environment



Cultural and tourist environment and cultural heritage preservation



Economic development and investment prospects



Moscow sports



Safe City program



Urban planning policy



Total expenditures on state-run programs

Share in total expenditure





Total expenses



Social budget

The draft budget for 2020-2022 ensures unconditional fulfilment of all social obligations to Muscovites.

Social expenditures (social support, healthcare, education, culture, sports, as well as certain events of other state-run programs) account for more than half of the city budget expenditures, that is 53.3%, or about RUB 1.7 trillion per year.

With medical care covered by the Compulsory Health Insurance Fund, financing of social spending in 2020 will make up more than RUB 2 trillion.

Spending on state-run educational programs in education will grow by 25.8%, with a 30.4% growth in healthcare, 63.7% in sports, and 18,4% in social support for residents. This is well above the expected inflation rate (3.7%).

Moscow residents' social support programs

The budget provides for RUB 495.3 billion for social support to Muscovites in cash and in kind (pension supplement, public transport travel privileges, housing and utility services, medicines, and many other). These costs are to grow by 19% from 2019.

The budget includes allocations of RUB 157.4 billion for additional payments to pensioners, based on the size of the minimum Moscow pension that is RUB 19,500 per month. 2.1 million Moscow residents receive such surcharges.  In 2020, benefits and compensations to senior citizens are expected to be indexed by 5.6%, with RUB 22.4 billion provided for by the draft budget.

In 2020, RUB 25.5 billion is to be allocated to finance benefits for housing and utility services for certain categories of citizens. Spending on housing subsidies to low-income families is expected to make up RUB 21.9 billion. More than four million Muscovites enjoy benefits for housing and utility services and housing subsidies.

In 2020, more than RUB 125 billion will be allocated to finance free travel or travel privileges in public transport for pensioners and other privileged categories of citizens. The benefits will also apply to Moscow Central Diameters (MCD). In addition, passengers will be able to transfer free of charge between the stations of the Moscow Central Circle (MCC) and the metro.   RUB 5 billion will be allocated in 2020 for the Moscow Longevity program — clubs and classes for senior citizens.

In 2020, RUB 2.4 billion from the Moscow budget and RUB 2.2 billion from the federal budget is to be allocated for rehabilitation equipment and prosthetic and orthopaedic products for disabled residents.  In 2020, RUB 7.7 billion, 85% from the city budget (RUB 6.7 billion) and 15% from the federal budget (RUB 1 billion) will go for free health resort vouchers for privileged categories of citizens.

In 2020, RUB 6.5 billion will be spent on targeted social assistance to senior Muscovites, veterans, disabled people and families with children.

Improving access to and quality of medical care

Taking into account the means of compulsory health insurance, healthcare costs in 2020 will make up more than RUB 700 billion. At the same time, direct budget expenditures under the Healthcare Development program are to grow from RUB 306.8 billion in 2019 to RUB 400 billion in 2020 (30.4%).

The cost of providing entitled citizens with free medicine or medicine privileges, medical products and specialised medical nutrition will increase in 2020 to RUB 45 billion.

The draft budget also includes RUB 1.3 billion allocated for the new program to provide free up-to-date medicines to citizens suffering from chronic coronary heart disease or who have suffered an acute myocardial infarction.

Funds are provided to continue the project of free public physical check-up in the Healthy Moscow summer pavilions.

Infection prevention activities will continue, too. The draft budget for 2020 allocates RUB 2.7 billion for the purchase of high-quality and safe vaccines. Compared to 2019, procurement of vaccines against human papillomavirus, meningococcal infections and pertussis will be significantly increased.

High-tech medical care in 2020 will receive RUB 10.9 billion from the city budget. That is RUB 2.5 billion, or 29.8% more than in 2019. 

Improving the quality and convenience of services in social institutions

The draft city budget is to allocate significant funds for repairing and refitting educational, medical and other social institutions. This will allow replacing outdated equipment, much of which was installed 8-10 or more years ago and has exceeded its useful life.

The institutions will have new, higher standards of quality and convenience of services introduced.

In 2020, total expenditures for these purposes will amount to RUB 162.6 billion:

— repair and re-equipment of city hospitals and polyclinics with state-of-the-art equipment — RUB 84.5 billion;

— development of infrastructure in social service institutions— RUB 15 billion;

— repair and re-equipment of kindergartens and schools — RUB 46.9 billion. Of these funds, RUB 14.2 billion will be used for innovative educational equipment, RUB 3.1 billion will go for the purchase of up-to-date equipment for workshops in Moscow colleges, with RUB 9 billion allocated for the upgrade of educational buildings within the project School of Senior Students;

— improving the performance and comfort of cultural institutions — RUB 8.7 billion;

— improving the performance and comfort of sports facilities — RUB 7.5 billion.

In 2020, the big project Art for Children to upgrade the infrastructure of Moscow art schools is expected to complete, with RUB 3.3 billion allocated. Also, in 2020, the project Moscow Biblio-Centres will continue. It aims to upgrade and update the interiors of the libraries. The budget provides RUB 500 million for this.

Increase of remuneration to public sector employees

The draft budget provides for an annual increase in the wage funds of public sector institutions, which is to increase the wages of pedagogical, medical, social workers, personnel of cultural institutions, researchers and other categories of public sector workers above the inflation rate.

Monthly payments will continue to be paid to doctors with the Moscow Doctor status, as well as to certain categories of medical workers (general practitioners, physicians and nurses involved in programs of care for senior patients with multiple chronic diseases, and others). In 2020, RUB 11.6 billion will be allocated for these purposes.

Also, teachers will continue to receive a special allowance of RUB 10,000 per month for using Moscow E-School (MES). There is also a remuneration for classroom management provided, with RUB 18 billion to be allocated in 2020.

Funding standards for pre-school, general and secondary vocational education will be increased by an average of RUB 10-15,000 per student per year.

Development budget

Spending on development events in 2020 will amount to RUB 1,278.9 billion, or 40.6% of the expenditure part of the budget.

The development budget includes Moscow's Targeted Investment Program (RUB 663.9 billion) and development activities: overhaul, purchase of equipment, rolling stock, integrated district development events, contribution to the Renovation Fund (RUB 615 billion).

As before, the top priority of the development budget is Moscow's transport issues. In 2020, RUB 435.8 billion is to go for construction of metro, roads and other transport facilities, with RUB 74.1 billion for purchasing rolling stock, to make up a total of RUB 509.9 billion. RUB 103.3 billion will be channelled to renovation program in 2020.

The draft budget also provides for funds to continue My District program aiming to create a comfortable urban space in each Moscow district.

Budget deficit

The budget deficit for 2020 will make up RUB 351.3 billion, or 12.6% of total revenues. In the planning period, the budget deficit will be reduced (in 2021 it is to reduce to RUB 214.1 billion, with a RUB 22.8 billion reduction in 2022).

The Moscow Government fulfils its obligations to repay and service public debt in full and in a timely manner.  Now it makes up RUB 30 billion, that is one bond issue, which will be repaid at the end of the circulation period in 2022. In 2010, the public debt reached RUB 300 billion.

The programs included in the Moscow draft budget  for 2020 and the planning period 2021-2022 will:

— improve social welfare of Muscovites, raise income of senior citizens and public sector employees;

— improve the quality and comfort of services in education, culture, healthcare and entertainment;

— improve the comfort and safety of the urban environment, especially in residential areas;

— improve public transport services for faster and more comfortable transportation around the city;

— growth of business and investment prospects of Moscow.


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