LAST YEAR`S BUDGET SHOWED GOOD GROWTH

03/15/19 14:23

LAST YEAR`S BUDGET SHOWED GOOD GROWTH

Due to the development of the economy and increasing its transparency, the state Treasury received 372 million rubles more

Tiraspol, March, 15. /Novosti Pridnestrovya/. The Pridnestrovian state Treasury income grow faster than its expenditures. This data is contained in the report of the First Deputy Minister of Finance Alena Ruskevich, voiced at today's Government meeting. Thus, last year consolidated budget incomes (republican + local) were at the level of 2.8 billion rubles. In comparison with the plan, this is 16% more, compared to 2017 this is more by 372 million rubles, or 15%.

All this was possible through the increase in tax revenues. For the year, the targets were exceeded by 24%. As noted in the Ministry of Finance, additional taxes were received due to an increase in production volumes at a number of enterprises: Sheriff, Kvint, Tirotex, MMP, RCP and others.

Last year consolidated budget expenditures amounted to 3.7 billion rubles. This is 9%, or 320 million, more than in 2017. The plan of financing execution is at the level of 90%, while in 2017 this figure was 80%.

“State budget revenues grew at a higher rate over expenditures. We have an increase in income of about 15%, and expenditure - by 9%. This is very important and demonstrates the adequacy of fiscal policy. Another very important indicator that affects the budget execution, as well as the economic and financial security of the republic as a whole, is the deficit that is not supported by income. Compared to 2017, this figure decreased by 4.5 times,” Chairman of the Government Alexander Martynov said.

“When executing expenditures of the republican and local budgets, as in previous periods, the tendency of socially protected articles high level financing continued. Their share in the consolidated budget was about 75%, while the share of wages accounts for about 60% of all budget expenditures,” Alena Ruskevich added.

Last year, thanks to the additionally allocated from the state Treasury funds, it was possible to somewhat increase the salary to teachers of correctional institutions. The allowances to teachers for the qualification category, bonuses and paid leave to certain categories of health workers and those who work in the judiciary have also increased. In addition, at the expense of targeted savings all teachers received vacation pay in time. 

“There is also a positive trend in spending on the purchase of medicines (about 33 million rubles), food (36 million), cash compensation and other transfers (33 million), expenses on prosthetics (4 million). Last year, 6 million rubles were allocated for the payment of guaranteed recovery of citizens' savings, in 2017 such expenses were not being made,” the Deputy Minister of Finance said.

Money, allocated for state targeted programs in the field of health, doubled, it was about 11 million rubles in total.

In addition, the capex fund was launched. Last year its account received 197 million rubles.

“Within the framework of the budget policy, we managed to solve a number of very important state tasks - to increase funding for the most important socially protected articles. This is food, medicine, clothing and so on. It was also possible to increase salaries in correctional institutions and introduce a program of assistance to retirees with a pension below the subsistence minimum. These are surcharges in the amount of 100 rubles,” the Prime Minister commented.

Alexander Martynov considered "strengthening the program-targeted approach to planning and budget execution" to be a breakthrough step. The experience was a success, so it will be continued in this and next years. This is both the Enterprise Support Fund, and 86 million rubles allocated to compensate for the inter-tariff difference and aimed at restoring the infrastructure of the housing and utilities sector.

“It is planned to direct it to the restoration of the engineering infrastructure in cities and districts. This is a power system, water supply and sewerage, and electrical networks. Next year we plan to continue this approach, we plan to create a Fund for the support and development of young families. Thus, financial resources will be reserved for every vital problem in our state and will be targeted for their solution,” the Head of Government said.

He also proposed to direct funds for the development of cities and districts, which would be obtained from the creation of new enterprises and small business growth. This idea has yet to be discussed with the heads of state administrations and deputies of the Supreme Council, but it is quite possible that it will be put into practice as early as 2019.

Speaking about the reasons for the growth of incomes of the state Treasury, Alexander Martynov noted not only an increase in industrial production and exports (as a result of state support for small and large businesses), but also an increase in the transparency of the economy.

“I would like to note the coordinated work of the Ministry of Finance (tax authorities) together with the Ministry of Internal Affairs and the Central Bank. In 2018, these three departments implemented a large set of measures that were aimed at reducing the shadow share of the economy precisely. According to the preliminary estimation, this made it possible to additionally accumulate about 80 million rubles in the state budget revenues. This is a very large amount,” he concluded. 

 

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