The Moscow office of the Federal Tax Service (FTS) reported on the results of its investigation into shadow incomes of non-working residents of the capital. In 2025, 64,000 Muscovites were identified who “formalized the sources of their funds.”

According to the data, over 9 billion rubles from legalized income were transferred to the state budget. It was noted that personal income tax consistently accounts for half of the tax revenues in Moscow’s budget. By the end of 2025, its collection volume increased by 9% year-on-year, reaching 2.4 trillion rubles.

As a result of efforts to prevent shadow employment, an additional 29,000 people declared income from property transactions, and the labor of 85,000 workers was legalized, of whom 7,000 were foreign citizens. Over 2 billion rubles were additionally assessed to the budget.

In the spring of 2025, the Ministry of Labor presented a three-year plan to combat illegal employment. According to the ministry’s data, nearly 1 million employees were brought out of the shadows last year, and 976,000 people were legalized in the labor market.

Federal Tax Service (FTS)

The Federal Tax Service (FTS) is the national tax authority of Russia, responsible for administering tax laws, collecting revenue, and combating tax evasion. It was established in its modern form in 2004, succeeding the State Tax Service of the Russian Federation which was created after the dissolution of the Soviet Union. As a key government agency, it plays a central role in the country’s fiscal policy and economic administration.

Moscow

Moscow is the capital and largest city of Russia, with a history dating back over 800 years to its first recorded mention in 1147. It grew from a medieval fortress (the Kremlin) into the political and cultural heart of the Russian state, serving as the capital of the Tsardom of Russia, the Soviet Union, and now the modern Russian Federation. The city is famed for its iconic landmarks like Red Square, St. Basil’s Cathedral, and the Kremlin complex, which symbolize its long and turbulent history.

state budget

A “state budget” is not a physical place or cultural site, but a government’s annual financial plan outlining its projected revenue and expenditures. Its history is tied to the development of modern representative government, evolving from monarchs’ private treasuries to a public document debated and approved by legislatures, symbolizing democratic accountability. It serves as a primary tool for a state to fund public services, infrastructure, and economic policy.

Moscow’s budget

This is not a place or cultural site. “Moscow’s budget” refers to the financial plan of the city government of Moscow, Russia, detailing its annual revenue and expenditures. Its history is tied to the economic and administrative evolution of the city, with modern budgeting processes developing after the dissolution of the Soviet Union.

Ministry of Labor

The Ministry of Labor is a governmental department responsible for labor policies, employment standards, and workers’ rights. Its modern form typically emerged in the late 19th or early 20th century in many countries, often in response to industrialization and the need to regulate workplace conditions and mediate between employers and employees. For example, the UK’s Ministry of Labour was established in 1916, while the U.S. Department of Labor was created in 1913 to promote the welfare of working people.