ALEXANDER DERYUGIN: “BECAUSE OF THE CONSEQUENCES OF THE SANCTIONS, THE ISSUE OF BALANCED BUDGETS OF RF SUBJECTS ACQUIRES SPECIAL IMPORTANCE”
Alexander Deryugin, researcher at the Budget Policy Department of the Gaidar Institute, commented to the Profile on the statement on the financial situation in the regions released by the Accounts Chamber of the Russian Federation.
Having analyzed the results of an audit of a group of “average” RF subjects, a team of auditors of the Accounts Chamber came to the conclusion that government support for subsidized regions did not translate into their improved financial situation. The ongoing programs are not very effective, the stimulating decisions transmitted from the central authorities are followed by constraining ones, and there are no proper conditions for predicting regional development. According to the Accounts Chamber, individual support measures - the creation of special economic zones and the approval of socioeconomic development programs - have had no noticeable effect on the financial well-being of the regions. They did not lead to job growth or increased investment, or raised the average monthly salary.
Alexander Deryugin believes that at present, the issue of balancing the consolidated budgets of RF subjects has become of particular importance, given the highly probable risks of shrinking tax bases in the foreseeable future in response to the sanctions. Budget balancing is directly linked to the transfer to the federal level of the benefits for labor veterans, the powers for covering the compulsory medical insurance of the non-working population, the obligations to provide orphans, veterans and disabled citizens with housing, to pay additional benefits to supplement pensions, to provide medications for individuals suffering from orphan and rare diseases, with the simultaneous centralized pooling of part of the profits tax and a reduction in the equalization subsidies to the regions.
Alexander Deryugin believes that at present, the issue of balancing the consolidated budgets of RF subjects has become of particular importance, given the highly probable risks of shrinking tax bases in the foreseeable future in response to the sanctions. Budget balancing is directly linked to the transfer to the federal level of the benefits for labor veterans, the powers for covering the compulsory medical insurance of the non-working population, the obligations to provide orphans, veterans and disabled citizens with housing, to pay additional benefits to supplement pensions, to provide medications for individuals suffering from orphan and rare diseases, with the simultaneous centralized pooling of part of the profits tax and a reduction in the equalization subsidies to the regions.