Regional development: what Medvedev said

The government hosted a meeting on the financing of regional development programs. It is possible that due to the launch of national projects and the execution of the new May decree, they will have to be adjusted.
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“The main thing is to correlate the growing needs with the capabilities of the federal budget,” said Prime Minister Dmitry Medvedev, warning various and expensive monetary requests from agencies for the development of the subjects of the Russian Federation (quoted by Kommersant). In the open part of the meeting, he clarified that the government will have to select the projects that are "critical" for each territory with the greatest effect.
Currently, the three most priority regional programs are projects for the development of the Crimea, the Far East and the North Caucasus. The publication reminds that Crimea has its own federal targeted program, the Far East and the North Caucasus, in addition to their own programs, also have the right to special sections in the sectoral state programs.
The most voluminous is now the state program for the development of the Crimea and Sevastopol, which, despite the annual breakdown of terms, has repeatedly increased - largely due to rising costs for the construction of the Tavrida highway. In total, the cost of the federal program exceeds 800 billion rubles, most of the program is funded from the federal budget. In 2018, 160.3 billion rubles were allocated for the implementation of the program, in July the government announced an increase in financing federal target programs by at least 37 billion rubles by extending the program for two years and including 140 new facilities. Dmitry Medvedev explains this by a “colossal lag” due to “well-known historical reasons.”
In addition, in August, the working group of the budgetary commission proposed the Ministry of Economy to work out the issue of implementing new measures for which additional funds were announced for 2019-2021. So, we are talking about updating the entire road infrastructure, power complex, engineering communications, as well as solving social issues.
The program for the development of the Far East in 2018 allocated 20.5 billion rubles. The main task for its implementation is the support of large investment projects and the creation of infrastructure for them, primarily within the territories of priority development.According to Deputy Prime Minister Yury Trutnev, to achieve key goals, among which is the achievement of a standard of living by 2024 higher than the average Russian, an additional 30 billion rubles are needed annually.
According to Kommersant, an increase in funding for the program is also being considered. We are talking about transferring up to 25% of additional income tax revenues when implementing the production-sharing agreement for the Sakhalin-2 project. The amount of such allocations in 2019 will be up to 7.2 billion rubles. The remaining 75% of the profits (up to 21.6 billion rubles in 2019) are proposed to be reserved.
The least expensive among the main regional state programs was the development of the North Caucasus - 14.1 billion rubles. At the meeting, Dmitry Medvedev spoke about the need to continue developing the economy of the North Caucasus Federal District based on competitive conditions for agriculture and resort potential. At the same time, as previously reported by the head of the Minkavkaz, Sergei Chebotarev, the issue of amending the state program is being discussed with a view to linking it more closely to the requirements of the May presidential decree.
In late August, it was reported that the government is finalizing the definition of budget financing for new national projects.For 2019, budget spending is planned to increase by 1.17 trillion rubles, of which 790 billion rubles will be spent on national projects. At the same time, the budget commission rejected about two thirds of the ministerial applications for additional expenditures on projects. The government notes that if they were satisfied, the six-year-old ruble eight trillion rubles that would be required to implement the new May decree of the Russian president would have been spent over three years.
Professor Tatyana Mirolyubova, dean of the economics department of Perm State University, shares her opinion on how the budget will be adjusted: Of course, some will give, but definitely not for everyone and not as much as necessary. Judging by the Perm Territory, it will definitely be like that.
Oleg Tolstoguzov, Ph.D. in Economics, Leading Researcher, Department of Regional Economic Policy, Institute of Economics, Karelian Research Center, Russian Academy of Sciences,that in 2019 a small number of regions will receive state support: “Most likely, the majority of the regions will not fall into the federal support program at all, since it is very difficult to fulfill all the conditions. On the other hand, there are no funds for this, therefore, willy-nilly, the regions are trying to keep the balance of surplus and budget deficit. <...> If the region has a budget deficit, then it will not fall into any federal program. today regions must rely only on themselves. "
Candidate of Economic Sciences, Associate Professor at the Department of State and Municipal Administration of Kursk State University Alexei Belostotsky also believes that the regions should not rely on maintaining the previous scale of state support: “The budget for 2019 will be held in difficult economic conditions. the established GDP growth rate of 2%. It is extremely important to keep inflation at around 4%, you also need to take into account the costs of pension reform right now, in this connection The Central Bank of the Russian Federation is planning to raise the interest rate (remember, in 2018, the regulator lowered it twice).
I believe that in these conditions it will be difficult for subjects to count on funding regional programs, especially for donor regions, regions with a large debt burden. I think even at the regional level, we will have to postpone the construction of large infrastructure facilities, especially where the budget is in short supply and there are problems with tax revenues, and there are not so many regions where tax revenues are normal, we have Petersburg, Khanty-Mansi Autonomous Area. <...>
I believe that in spite of all the difficulties and problems, in no case should the incomes of the population suffer, the tax burden should be reduced, especially for low-income citizens, and the state must fulfill all social obligations assumed. "
Well, something like this.
The full version of the material with detailed comments of experts can be read here.
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