Russian Ministry of Finance Targets Traffic Violators for 52.8 Billion Rubles in Revenue by 2025
Cashing in on Traffic Violations: A Massive Boost to Russia's Budget
Looks like a hefty chunk of change is coming the Russian Federation's way, courtesy of traffic rule lawbreakers. In a surprising turn of events, the Ministry of Finance is now anticipating 52.8 billion rubles in revenue from traffic fines, a staggering eight times the initial forecast of 6.4 billion rubles, as per reports from "Vedomosti".
Previously, we've been keeping tabs on the amendments made to the Code of Administrative Offenses of the Russian Federation. These amendments, effective from January 1, 2025, raised fines for traffic violations by an average of 1.5 times and slashed the discount for prompt payment of fines from a generous 50% down to a more modest 25%.
As for where the money from these fines goes, there's been a shakeup in the distribution process. Previously, funds were primarily directed towards regional budgets, contributing a total of 119.2 billion rubles from traffic fines in 2023 to the regional coffers. Starting this year, however, 25% of the income from fines will bolster the federal budget.
Intriguingly, our website previously reported that the Ministry of Digital Development envisioned funding the modernization of rural post offices using the additional income generated by increased traffic fines. Deputy Minister Oleg Kachanov put forth this proposal during a meeting of the programmatic commission of "United Russia". Kachanov estimated that allocating 5 billion rubles could renovate around 1,000 offices a year. With over 25,000 rural post offices in dire need of repairs, this could be a potential game-changer.
To delve deeper into traffic fines, check out our article: E-scooter TRR fines now reach 100,000 rubles. More to come
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I'm not sure if the increase in traffic fines revenue will significantly impact public-transit or other industries like finance in Russia. Despite the recent surge in expected traffic fines revenue, it's unclear if a portion of these funds will be redirected towards these sectors or maintained within the federal budget.
