Deputies of the State Council of Komi will consider the draft law on 2019-2021 republican budget.
Sergey Gaplikov, Head of the Republic of Komi discussed the agenda for the upcoming November parliamentary session with Nadezhda Dorofeyeva, Speaker of the regional parliament and members of the Presidium of the State Council of the Republic of Komi.
On November 22, the State Council deputies considered 21 draft laws with the republican budget draft law as the key issue. The head of the region thanked the deputies for their active and constructive work on the main financial document of the republic.
The head of the region noted that the financial system of the republic was stable. For recent years, the budget grew significantly and debt burden reduced. It was impossible to avoid completely 2019 budget deficit (the budget deficit is RUR 1.4 bln), but a slight surplus is expected next years.
In the future, the surplus will reduce state debt, which amounted to 60 per cent of tax and non-tax revenues in in the last two years. In 2016 the volume of public debt of the republic was 78 per cent.
The main income source of the regional budget will remain the corporate income tax, the personal income tax and the corporate property tax (i.e. 90 percent of all revenues).
The key negative factor of the budget pumping will be the abolition of the tax on movable property of organizations in 2019. It brings to RUR 4 bln of income reduction annually. The expected phased abolition of federal tax benefits and an increase of the property tax on trunk pipelines and power transmission lines will partially compensate income losses.
In the next three years, an increase in revenues to the Road Fund of the Republic of Komi is expected. Now they amount to RUR 3.2 bln a year, then next year RUR 4 bln is expected. From January 1, 2019, the Komi Road Fund will receive revenues from fines for road safety law violation.
Like previous years, social obligations are the main expenditure item for the republican treasury. 4 per cent indexation of social support will be provided from January 1, and scholarships will be increase from September 1, 2019. Until 2021, a number of social support measures are extended. Provision for raising minimum wages for the working population, increasing the wages of education, health, culture, social fields’ officers in accordance with the May decrees, annual indexation of the salary funds of state employees not mentioned in the decrees, and civil servants wages growth are envisaged.
From 2019, the scope of financial support fund for municipalities will be increased by half (up to RUR 4.2 bln).