The Federation will invest in their subjects


RIA Novosti

The government, increasing in 2017 by 9%, or up to 1.6 trillion rubles, the state support of regions, and expects them to economic results — reducing by almost half the regional budget deficit by 2019, and reduce the level of subsidization. In addition, the government is thinking about the transition from the principle “money goes to money” to the principle of “money needs” — on this, and also promised to increase subsidies to calculate the constituent entities of the Russian Federation with low fiscal capacity. However, the donor regions are already beginning to Express disagreement with the increased load on them due to the redistribution of income in the budget system.

Yesterday’s meeting on the provision of regional budgets in the years 2017-2019 began with good news for governors, and Prime Minister Dmitry Medvedev said that the state support of regions in the next year will increase by 9% — thus, the amount of financial assistance will amount to some 1.6 trillion rubles As the Finance Ministry for meeting peak support will have it in 2017 — 2018 is expected to be a gradual reduction of intergovernmental transfers. So, in 2018, the document says, their volume will be reduced by 2.6% and in 2019-by 3.7%. It is planned to increase subsidies for balancing budgets-in 2018, they are expected to grow by 26% (129,8 bln), and in 2019 — 8.8% (141,2 billion rubles). Grants for leveling the budget supply in the years 2017-2019 will also rise — up to 614,6 billion rubles a year against 514,6 billion rubles in 2016.

Regions, however, will have to demonstrate to the White house visible results of the support-the government instead of waiting for an almost twofold reduction of the deficit of regional budgets by 2019.

From the presentation of the Ministry of Finance, at the end of 2016, the deficit of the consolidated budgets is expected at the level of 211.8 billion rubles-and in 2019 it should be about 104,4 billion. in addition, from 2017 to conclude with the Ministry of Finance agreements from the recipients of grants must take responsibility to increase the economic potential and reduce the level of subsidization. In case of violation of the terms of the agreement the subject of the Russian Federation could face a reduction of subsidies for 2018-2020 5% (but not more than 5% of its tax and non-tax revenues in 2017).

Similar requirements the government imposes when granting budget loans next year (they provided one and a half times less than in 2016– 200 bn). They will be provided for five years and is aimed at the same task — reducing the deficit in 2017-2020, reducing the share of market debt to 2018 and 2019 years to not more than 60% and 50% of income (with fixing that level until 2022).

The White house claim about the necessity of ending the practice of subsidizing according to the principle “money goes to money” – the Prime Minister, targeted transfers should be directed primarily “based on the needs in the development of regional sectors of the economy, in social sphere, not just in the regions, especially in regions that are donors and which can account for its own funds to Finance appropriate activities”.

Interviewed by “b” the governors supported the binding of the volume of transfers to the economic development of the regions. “There should be no “distribution to all sisters on earrings” it,” – says the Governor of the Tomsk region Sergey Zhvachkin. The head of Chuvashia Mikhail Ignatyev and all reported that these requirements for the region “not a surprise, as the basis of government policy for several years.” The head of Bashkortostan Republic Rustem Khamitov emphasized the transition to a subsidy on the principle of “money needs” — in his words, the last 20 years, the region is in the 40’s and 50 places for budget sufficiency and alignment will prevent “the existing huge differences between regions in terms of fiscal revenues and expenditures per capita”. In addition, the regions particularly appreciated the increase of grants for leveling the budget supply — according to the Governor of Ivanovo region Pavel Konkov, the region in 2017 will receive a third more in subsidies than this year.

However, governors are not so unanimous in the assessment of innovations — we will remind, the head of the Republic of Tatarstan (part of few regions-donors), Rustam Minnikhanov, has sharply criticized the decision to centralize additional 1% income tax (prior to this the Federal budget received 2%, and regional — 18% of taxable profits). The deployment decision was made by the White house to support the poorest regions (see “Kommersant” on September 20). According to Mr. Minnikhanov, the damage from it for Tatarstan may amount to 8 billion rubles. “the Entire earnings of the next year, if we’re going to work it will take to cover our costs and not to improve the lives of people,” he said.

Evgenia Kryuchkova; Bulat Bashirov, Ufa, Russia; Oleg Eruslanov, Cheboksary; Elena Morozova, Novosibirsk, Russia; Sergei Ivanov, Rostov-on-don; Alexander Tikhonov, Ivanovo oblast