To make the best use of available resources, to attract investment and optimize the expenditure commitments was designated as a task by Sergey Gaplikov, the Head of the Republic of Komi in the implementation of fiscal policy in the short term
The budget of Komi for 2017 and further for 2018 - 2019 became the main item in the agenda of the regional government meeting.
Opening the meeting the Head of the region emphasized the need for careful study of each item and parameter of the republican budget in view of available possibilities and resources to maintain it balanced and sustainable. Sergey Gaplikov also noted that a very active work is carried out on creation of the state budget and the distribution of its spending obligations to the regions.
"Our main task today is to make the best use of available resources and foster investments which will replace or help in some part to relieve our obligations and federal government liabilities in a challenging situation. Today, relevant activities are conducted at the Russian government. They are supervised by Dmitry Kozak, the Deputy Prime Minister. I attended one of those discussions. Believe me, governors and federal authorities were fighting for every ruble," said Sergey Gaplikov.
The Head of the Republic of Komi instructed to conduct a thorough inventory of the region's financial commitments in order to optimize the republican budget and to direct released funds to the regional development.
"Industries that generate the tax base and give us a real opportunity to make money to the budget amount to 0.4-2.4 per cent of budget expenditures (agriculture and rural social development). Comparing to other sectors regional agriculture receives the maximum funding. But we also need roads, bridges and ferries. Do we need to modernize territory and to put the housing in order? Yes, we do. To solve these issues we need to make good money. In this case we need to develop profitable industries," said the Head of the region.
Sergey Gaplikov also drew the attention of the meeting participants to the demand for new less costly and more efficient approaches and mechanisms. As an example, the Head of the region mentioned a territorial public self-government. This form of social partnership between the government and the population considerably saves budgetary funds allocated in territorial development.
The budget expenditures are based on the following priorities:
1) fulfillment of social obligations that directly affect interests of the population, including the enforcement of the May Presidential decrees remains an absolute priority.
Regional family capital payments are prolonged till 2018; payments to mothers who give birth to the third and subsequent children; payments to parents having children with disabilities up to 18 years old; compensation of travel costs to medical facilities for pregnant women living in remote areas; a lump sum in case of adoption; orphans’ housing repairs.
2) agricultural manufacturers support. The republican budget draft maintains the main directions of agriculture state support, taking into account the public policy objectives implemented in the agricultural sector aimed to import substitution. Comparing to 2016, the volume of funds raised to RUR 70 mn.
3) Inefficient spending reduction. Scheduled spending for 2017-2019 are averagely reduced by 3 percent. Under these circumstances, it is necessary to optimize costs through the redistribution of funds in the most important parts of government programs to reduce inefficient spending.
In 2017 budget investments amounted to RUR 2.9 bn, to RUR 2.6 bn in 2018 and to RUR 2.0 bn in 2019.
As part of the target investment program construction of such new facilities is foreseen:
- the Republican Infectious Diseases Hospital in Syktyvkar with an investment of RUR 1.7 bn,
- schools with an investment of RUR 600 mn and
- sports facilities with an investment of RUR 120 mn
These objects will be constructed sharing federal budget funds.
Implementation of a motor road concession (Malaya Pera – Irael, Irael – Kadzherom road sections) will continue a public-private partnership within the framework of the investment fund.
Purchase of 11 medical stations is planned for the federal budget money.