The funds that will be released as a result of reducing the cost of servicing the state debt of the Krasnodar Territory in the coming years will be directed primarily to the social sphere, Nikolai Kravchenko, head of the profile committee of the Legislative Assembly of the Kuban, told TASS.
“Reducing the debt burden entails, firstly, a decrease in the cost of servicing the public debt: a 10 percentage point decrease allows us to free up about 15 billion rubles, which we can use for other purposes. The priority area for using the released funds is the social sphere, then agro-industrial complex, sanatorium-resort complex, transport component and recreation, “he said.
The interlocutor added that reducing the debt burden will also attract investors to the region.
“The fact is that a region with a large public debt cannot fully provide the conditions for doing business. And attracting business is a stable development of the region, an increase in the gross regional product and, as a result, an increase in income, which makes it possible to further reduce the debt burden,” he explained Kravchenko.
Reduction of public debt
“As of January 1, 2017, the state debt of the Krasnodar Territory amounted to 150 billion rubles. During 2017, the volume of the region’s debt fluctuates due to operations with debt obligations: repayments, refinancing, optimization of debt service costs, including through on-lending of the most expensive “borrowing. In the future, there will be a transition to a gradual decrease in the state debt,” the regional Ministry of Finance told TASS.
It is planned that at the beginning of 2018 the state debt will amount to 149.4 billion rubles (59.9 billion rubles of budget loans, 10.5 billion of securities, 59.2 billion of commercial loans and 19.8 billion of guarantees). The debt burden will be 83.7%. As of January 1, 2019, the national debt is projected at 146.7 billion rubles with a debt burden of 78.7%, another year later – 145.4 billion with a debt burden of 74.8%.
“Some reduction in the debt amount envisaged in the draft regional budget for 2018-2020 years, it is projected as the fulfillment of the obligations secured by state guarantees the Krasnodar Territory. Reducing the debt burden in this period will be achieved, first of all, due to the total amount of tax and the annual growth non-tax revenues of the regional budget “, – explained in the Ministry of Finance.
The ministry notes that to date, 43 billion rubles of budget loans have been restructured.
The federal program for the restructuring of budget loans, the launch of which was announced earlier by Russian President Vladimir Putin in 2018, will allow the region to reduce the volume of commercial loans attracted for debt restructuring in general. However, it is premature to name specific amounts, added the regional Finance Ministry.
Deputy Governor Igor Gala told the agency that by the end of this year the budget surplus of the Kuban will be about 1 billion rubles.
“Today we are seeing dynamic tax receipts, in particular, a significant increase in corporate income tax due to stable operation of the economy and improved results of financial and economic activities of enterprises in the region. According to the results of eight months, the growth rate of payments amounted to 117.6% compared to the same period last year,” – he said.
By the end of the year, it is expected that income from personal income tax will increase by 11% and by 21% – from corporate property tax. Also, a “balanced policy in the expenditure side of the budget” is being carried out, it was possible to concentrate budget resources to ensure priority goals in such a way as not to attract borrowed funds.
“In the future, it is planned to ensure a balanced budget by mobilizing regional budget revenues, increasing the efficiency of public finance management and optimizing the regional budget expenditures. The regional budget for 2018 and the two-year planning period has practically been formed. It is focused on continuing a fairly tough budget policy. Today we are we are talking about the equality of revenues and expenditures of the regional budget in 2018-2020, “said the vice-governor.
He added that the planned volume of gratuitous receipts from the federal budget will still be clarified, however, according to the main source of filling the budget – tax and non-tax revenues – for 2018, an increase of 9.7% is forecasted against the indicators of 2016, and by the expected data of 2017 – by 2.8%.