Rustam Minnikhanov: ‘Next year will be difficult, the most important thing is to avoid bankruptcies’
Despite the risks, the republic is confident about budget expenditures in 2025
Tatarstan's GRP growth this year will amount to 103.2% and reach 5 trillion rubles, Tatarstan Rais Rustam Minnikhanov is confident. The revenues of the republican budget are expected to be at the level of 647.5 billion rubles, including income tax — 165.3 billion. In 2025, the latter figure is projected to be lower — 128 billion, Tatarstan Finance Minister Radik Gayzatullin noted today at a joint board of financial, treasury and tax authorities of the Republic of Tatarstan.”There is a plan in case risks arise, what will you do?” asked head of the Russian Ministry of Finance Anton Siluanov. But the speaker and the head of the republic assured him that the budget would be executed.
Do not allow bankruptcies and non-payment of salaries
The current year began in difficult conditions, Rustam Minnikhanov noted at the beginning of the board meeting. Nevertheless, according to him, there are no questions for the financial, treasury and tax authorities, the work is proceeding smoothly. If last year GRP of Tatarstan grew by 3.6%, exceeding 4 trillion rubles, then according to the results of 10 months of the current year — by 3.2%, for industrial production — by 3.9%.
“Our goal is quite realistic. The gross regional product will amount to 5 trillion rubles — this year we must reach this milestone,” the rais of the republic said.
According to him, this would be impossible without the support of the federal centre, the government and the president of the country. With their help, large infrastructure projects are being implemented in the republic. Among the latest are the reconstruction of the Gorky Highway and the construction of Voznesensky Trakt highway in Kazan.
Budget revenues of Tatarstan for 2024 are expected to be at the level of 647.5 billion rubles, of which 551.7 billion are tax and non-tax revenues. 459.1 billion will go to the republic's budget, 92.6 billion to local ones. The Tatarstan budget for 2025 was adopted with a deficit of 13.5 billion, Rustam Minnikhanov recalled.
“The state has certain obligations regarding defence-related issues. Our planning also takes into account the increase in corporate income tax, everything is clear — this is the reality. It is important to continue working, there are reserves. Industry ministries should hold balance commissions with enterprises, help those who are experiencing difficulties. When there is a decrease in payments, they cannot do without our intervention and support. Next year will be very difficult. The most important thing is to avoid bankruptcies and non-payment of wages,” he instructed.
“In extreme cases, we will have to cut investment programmes”
As reported by Minister of Finance of the Republic of Tatarstan Radik Gayzatullin, 165.3 billion rubles are expected to be received from income tax for 2024, 44.1 billion rubles from excise taxes, and 41 billion rubles from property taxes of organisations. All these fees, including non-tax revenues, make up about 90% of the treasury structure.
Expenses of the consolidated budget of the Republic of Tatarstan by the end of 2024 will amount to 648.9 billion, expenses of the republican treasury — 548.1 billion. As reported by the Ministry of Finance of the Republic, the balance of budget funds at the beginning of the year, the revenues received by the budget will allow for the full and timely payment of salaries with accruals, and to finance in sufficient quantities the planned expenses of budgets at all levels. The head of the Russian Ministry of Finance inquired about the risks of budget execution in Tatarstan:
“The budget has been formed, but there are risks — how will oil prices behave. Do you have a plan in case risks arise? What will you do to ensure budget balance?” asked Anton Siluanov.
Profit tax revenues to the budget of the Republic of Tatarstan for 2024 are expected to be 165.3 billion rubles. Answering the head of the Russian Ministry of Finance, Radik Gayzatullin said that he is confident in the execution of the budget. “In 2025, the expected income tax is 128 billion, which is slightly lower than the current year’s 165.3 billion. We have worked out the risk issues with all enterprises in the republic, so, in our opinion, the budget is feasible,” he said.
“In the worst-case scenario, we will have to cut the investment programme a little. All budgetary social obligations are sacred, but we approached the income tax very carefully. I think there are risks, but we will not allow the budget to not be fulfilled. We have arrears of 9-10 billion, I think we can easily pull 3-4 billion out of there. Therefore, we will work,” assured them Rustam Minnikhanov.
“The republic’s budget is balanced, meets all the tasks and national development goals set by the country's president. We see that the budget has reserves for possible risks, which we all know about. In addition, Tatarstan is an active participant in the loan write-off mechanism. I am confident that we will continue to be effective,” Anton Siluanov spoke at the end of the board meeting.
The Russian Finance Minister noted the responsible approach of the Tatarstan team to budget, financial and economic policy.