Tatarstan to refrain from new budget loans
The treasury of Tatarstan has recovered from the coronavirus shock, having won back last year's losses of 40 billion rubles. The natural increase in tax collections was exceeded by 12-15 billion
The treasury of Tatarstan has recovered from the coronavirus shock, no longer requiring federal support. “There is no need for budget loans this year," Deputy Finance Minister of the Republic of Tatarstan Aleksey Shishkin said about the fulfillment of debt obligations at a meeting of the Budget Committee of the State Council of the Republic of Tatarstan. Due to the outstripping growth of tax revenues, the Ministry of Finance of the Republic of Tatarstan is preparing to carry out a “post-coronavirus” adjustment of the budget 2021. Already now, the increase in income amounted to 12-15 billion rubles. The levels of relatively favourable 2018-2019 are still far away, but the federal centre has also shown favour by granting a 9-year loan deferral.
Compensating the financial failure in the pandemic
The Ministry of Finance of the Republic of Tatarstan is preparing to carry out a “post-coronavirus” adjustment of the budget of the Republic of Tatarstan in connection with the over-fulfillment of projected revenues by 12-15 billion rubles, Deputy Minister Aleksey Shishkin said. Reporting on the progress of budget implementation for 8 months of this year, he said that the situation with income collection has stabilised, and the treasury has recovered from the shock of 2020.
According to him, since the beginning of the year, the consolidated budget has collected 149,3 billion rubles, or 55% of the plan, and the republican budget — 125,5 billion rubles, or 54,6% of the plan. With a large over-fulfillment of income tax payments, more than 53 billion rubles have been collected, or 71% of the annual plan. Targeted funds for 21 billion rubles were received from the federal budget. In general, the treasury received 40 billion rubles more than in the previous year. That is how much the republican budget lost in 2020, when the income tax collection “sank” significantly.
“The pace is good and compared to last year, when we were forced to take loans from the federal budget, it is significantly different. There is no such need this year," the speaker said. “The previous year was quite a failure, and the year 2019 was more stable," Aleksey Shishkin described the successful trend.
For 8 months of this year, 209,3 billion rubles were collected in the consolidated budget, 176,4 billion rubles were collected in the republican budget.
“Timely financing of all planned expenses is underway," the deputy minister of finance of the Republic of Tatarstan assured.
The Ministry of Finance of the Republic of Tatarstan predicts an even more significant increase in taxes by the end of the year. “Apparently, by the results of nine months, it will be possible to submit a proposal to the State Council to increase the budget," the speaker noted.
“In 9 months, the picture will improve even more, and by the end of the year, receipts will increase. In all likelihood, we will make clarifications for your consideration," Shishkin said.
Let us remind that the budget revenues of the Republic of Tatarstan were approved in the amount of 274,6 billion rubles, expenditures — 281,7 billion rubles, deficit — 7 billion rubles.
Another postponement for 9 years
The federal centre showed favour by granting a 9-year loan deferral. The Ministry of Finance of the Republic of Tatarstan signed an agreement on the restructuring of a budget loan for 2,1 billion rubles, taken to cover the budget deficit at the end of 2020.
According to Aleksey Shishkin, this June, Tatarstan, along with other regions, took part in the restructuring of budget loans of the subjects of the Russian Federation.
“We also took part in a loan of 2,1 billion rubles, which was issued in December 2020. Initially, the repayment period was for July 1 of this year," he said. “But as a result of the restructuring, the repayment period was extended by 9 years — until 2029.”
According to its terms, the republic is obliged to pay 5% of the debt amount during the period from 2021 to 2024, and from 2025 to 2029 — 16% of the debt amount. As a result, the treasury will be able to save about 2 billion rubles, Shishkin said. Instead of 2,1 billion rubles, Tatarstan will return only 120 million rubles.
“The trend is not bad, payments are being postponed further and further, and as a result, we are talking about that the released funds will be used for investments," commented the head of the Budget Committee of the State Council of the Republic of Tatarstan, Leonid Yakunin.
The members of the committee recommended to adopt the draft bill of the Republic of Tatarstan “On approval of additional agreements to agreements on granting budget loans to the budget of the Republic of Tatarstan from the federal budget”. On September 23, it will be submitted to the autumn session of the parliament.
Currently, the state debt of the Republic of Tatarstan is 85 billion rubles for budget loans and 11 billion rubles for public guarantees.