News

13.12.2018, 18:14

I. Metshin: “We’re getting much more and we have more opportunities to use the development budget”

The budget of Kazan for 2019 and the planned period of 2020 and 2021 has been adopted.

(KZN.RU, December 13, Alena Miroshnichenko). The budget for 2019 takes into account all the fact of the present reality and maintains a social orientation. At a meeting of the XXX session, deputies of the Kazan City Duma discussed the forecast of socio-economic development and the draft budget of the capital of Tatarstan for 2019 and the planned period of 2020 and 2021.

Artur Valiakhmetov, the chairman of the Committee for Economic Development, introduced the key parameters of the forecast of the socio-economic development of the city. “This year, we have a trend of growing economic activity. In the context of a changing external and internal environment, the city’s economy continues to maintain the achieved results”, he noted. At the end of this year, the volume of the gross territorial product is expected to be within 752.5 billion rubles. By 2021, according to the forecast, the volume will exceed the level of 2017 in comparable prices by 8.7% and amount to 893 billion rubles.

The development of the industrial complex of the city in the forecast period will be determined by the prevailing dynamics of demand in the domestic market of the country. At the same time, measures aimed at improving the competitiveness of domestic producers and import substitution will affect the growth rate. The growth of industrial production this year is estimated at 102.5%. Moderate growth rates in industrial production are expected in the medium term. The growth of the industrial production index is projected in the range of 2.5-2.9% annually.

Another major factor in sustainable development is attracting investment in the city's economy. During the first 9 months of this year, the volume of investments increased by 2.6% compared to the corresponding period of 2017. At the end of the year, the volume of investments will amount to more than 200 billion rubles or 103.5% to the level of the previous year. In the forecast period, the volume of investments in fixed capital will increase compared to 2017 in comparable prices by 23%.

As for the retail trade turnover, it exceeded the level of the last year in comparable prices by 7.4% for 9 months of the current year. At the end of 2018, retail sales are expected to increase in comparable prices by 6%, which is estimated at over 524 billion rubles. By 2021, it is expected that retail trade turnover will reach almost 630 billion rubles, with an increase in comparable prices of 13.5% by 2017. In the forecast period, the value of the consumer price index is expected to be at 104% annually.

According to the speaker, the situation in the labor market will be stable, there is no mass release of labor.

The population of Kazan at the beginning of 2018 was 1 million 243.5 thousand people. The planned increase in the number of residents in 2018 is 11.5 thousand people. The forecast provides for an annual increase in population within 1%. Thus, by 2021, the population is projected at a rate of 1 million 279 thousand people.

Based on the parameters of socio-economic development, the Financial Department of Kazan developed a draft budget for the city for 2019 and a planning period for 2020 and 2021. Thus, the total amount of the revenue part of the Kazan budget for 2019 is projected at 23 billion 23 million rubles, which is more than the approved budget for 2018 by 1 billion 415 million rubles. Tax and non-tax revenues of the city budget for 2019 will be 15 billion 137 million rubles, of which 12 billion 991 million rubles are tax revenues. Gratuitous receipts fr om the budget of the RT are provided in the amount of 7 billion 886 million rubles.

The changes affected only the personal income tax, an additional standard of deductions in the republic was set at 1.6%, noted I. Mukhametshin, the head of the Financial Department.

The most voluminous revenue sources of the budget of Kazan are still the tax on personal income, land tax and taxes on comprehensive income. They will make 91% of all tax revenues of the budget, more than 45% of which is personal income tax. The revenue from this tax in 2019 will be 5 billion 897 million rubles. The share of land tax will amount to 26% of tax revenues of the budget (3 billion 402 million rubles). Revenues from taxes on comprehensive income are projected for 2019 in the amount of 2 billion 538 million rubles. Their share in tax revenues of the city budget is 19.5%.

The forecast of non-tax revenues of the Kazan budget for 2019 is 2 billion 146 million rubles. The main part of non-tax revenues is formed at the expense of revenues from the use of property owned by municipalities (1 billion 562 million rubles).

Financial assistance is a major source of revenue for the city budget. In the draft budget for 2019, gratuitous revenues from the budget of the RT accounted for 7 billion 886 million rubles.

The expenditure part of the city budget, as well as the revenue, in 2019 will amount to 23 billion 23 million rubles. The growth rate to the approved budget of the current year will be 106.5%. “The expenses of the city budget are formed within the framework of 7 state programs and 15 municipal programs. As in previous years, most of the expenses are in the socio-cultural sphere. This includes spending on education (15 billion 11 million rubles), social policy (11 billion 80 million rubles), culture (680 million rubles), physical culture and sports (491 million rubles), youth policy (289 million rubles), health care (19 million rubles). The remaining expenses are divided into sections of national issues, national policy, housing and communal services, and others”, reported the head of the Financial Department.

The indicators of the draft budget of Kazan for 2019 correspond to the principle of general balance of the budget. The budget of the city for 2019 on income and expenditure will be 23 billion 23 million 409 thousand rubles, for 2020 – 23 billion 468 million 218 thousand rubles, and for 2021 – 23 billion 702 million 528 thousand rubles.

On October 25, 2018, the draft budget was published in a collection of documents and legal acts of the Kazan Municipality. On November 12, public hearings were held, after which the draft was reviewed in detail at the meetings of the standing commissions of Kazan City Duma.

“In general, the budget for 2019 takes into account all the fact of the present reality. Among the peculiarities, I would like to note that, as before, all socially significant and top-priority expenses are planned in it, the social orientation of the budget is preserved”, said Ilsur Metshin, the Mayor of Kazan.

However, he noted that a number of areas of the urban economy was not fully financed. These tasks are to be solved in the course of budget execution. “I want to emphasize that similar problems were with the approval of the budget for 2018. But, as you know, some of them were resolved with the support of Rustam Minnikhanov, the President of the RT. The city received additional funding for such programs as maintenance of improvement objects, city parks, roads, the purchase of gas-powered fuel buses, reimbursement of expenses related to the World Cup, including cleaning of streets, parks, and reconstruction of biological sewage treatment plants. We turned to the leadership of the republic for support in such areas as capital repairs, maintenance of parks and squares, lighting in residential areas and we hope for a positive decision”, said the Mayor.

He also marked that the Kazan Executive Committee should carry out all activities that will preserve the balance of the budget and funding in full. “We must ensure the attraction of other sources of income. Together with the deputies, we need to determine which directions to use in the first place. In general, the budget is ready”, concluded I. Metshin.

Having heard the forecast of the socio-economic development of the city and the draft budget, the meeting asked a number of questions. Thus, deputy Vladimir Nikishov asked how the cancellation of land tax for pensioners will affect the city’s income. I. Mukhametshin said that city budget losses about 90 million, but when forming the budget for 2019, these changes have already been taken into account.

Deputy Kamariya Khamidullina asked about grant support for Kazan schoolchildren. “I want to note that the pledged funds are not always enough, the number of prizes is growing every year. So, this year we additionally found 7 million from the city budget to support the winners of the Olympiad”, added I. Mukhametshin.

Ilnar Nurgaliyev, the chairman of the Control and Accounting Chamber, noted that the budget of Kazan is balanced in terms of revenues and expenditures for both 2019 and the planning period. “The proposed project submitted by the Executive Committee, it complies with the norms and provisions of budget legislation”, he concluded.

A separate message for the meeting was prepared by the deputy Alexey Serov. In his opinion, the Executive Committee should pay more attention to increasing the revenue side of the budget, and also include such a direction as “development” among expenses. For comparison, he cited the experience of other million-plus cities with a budget exceeding Kazan: Nizhny Novgorod, Perm, and Ufa.

“Each region has its own budget rules. The way we have built in Tatarstan absolutely suits me as the Mayor of Kazan”, Ilsur Metshin answered the speaker. He also noted that the “development” direction is also provided in the Kazan budget. In this issue, support is also provided by the republican programs in the capital. “There is not a single city, if you don’t take Moscow, St. Petersburg, rich Tyumen, and Khanty-Mansiysk, which would receive from the region the kind of assistance that Kazan receives. We need to be fair. Last year alone, Kazan allocated 1.5 billion for public spaces, 1 billion for overhauling yards, building ten kindergartens, overhauling schools and clinics. This is all a development budget. In addition, there is not a single subject in the Russian Federation wh ere they help not only the capital, but also the municipalities. We have more than 500 republican programs that are initiated by our President. We’re getting much more and we have more opportunities to use this development budget”, concluded I. Metshin.

Photo report

The XXX session of the Kazan City Duma, 12/13/2018

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(KZN.RU, December 13, Alena Miroshnichenko). The budget for 2019 takes into account all the fact of the present reality and maintains a social orientation. At a meeting of the XXX session, deputies of the Kazan City Duma discussed the forecast of socio-economic development and the draft budget of the capital of Tatarstan for 2019 and the planned period of 2020 and 2021. Artur Valiakhmetov, the chairman of the Committee for Economic Development, introduced the key parameters of the forecast of the socio-economic development of the city. “This year, we have a trend of growing economic activity. In the context of a changing external and internal environment, the city’s economy continues to maintain the achieved results”, he noted. At the end of this year, the volume of the gross territorial product is expected to be within 752.5 billion rubles. By 2021, according to the forecast, the volume will exceed the level of 2017 in comparable prices by 8.7% and amount to 893 billion rubles. The development of the industrial complex of the city in the forecast period will be determined by the prevailing dynamics of demand in the domestic market of the country. At the same time, measures aimed at improving the competitiveness of domestic producers and import substitution will affect the growth rate. The growth of industrial production this year is estimated at 102.5%. Moderate growth rates in industrial production are expected in the medium term. The growth of the industrial production index is projected in the range of 2.5-2.9% annually. Another major factor in sustainable development is attracting investment in the city's economy. During the first 9 months of this year, the volume of investments increased by 2.6% compared to the corresponding period of 2017. At the end of the year, the volume of investments will amount to more than 200 billion rubles or 103.5% to the level of the previous year. In the forecast period, the volume of investments in fixed capital will increase compared to 2017 in comparable prices by 23%. As for the retail trade turnover, it exceeded the level of the last year in comparable prices by 7.4% for 9 months of the current year. At the end of 2018, retail sales are expected to increase in comparable prices by 6%, which is estimated at over 524 billion rubles. By 2021, it is expected that retail trade turnover will reach almost 630 billion rubles, with an increase in comparable prices of 13.5% by 2017. In the forecast period, the value of the consumer price index is expected to be at 104% annually. According to the speaker, the situation in the labor market will be stable, there is no mass release of labor. The population of Kazan at the beginning of 2018 was 1 million 243.5 thousand people. The planned increase in the number of residents in 2018 is 11.5 thousand people. The forecast provides for an annual increase in population within 1%. Thus, by 2021, the population is projected at a rate of 1 million 279 thousand people. Based on the parameters of socio-economic development, the Financial Department of Kazan developed a draft budget for the city for 2019 and a planning period for 2020 and 2021. Thus, the total amount of the revenue part of the Kazan budget for 2019 is projected at 23 billion 23 million rubles, which is more than the approved budget for 2018 by 1 billion 415 million rubles. Tax and non-tax revenues of the city budget for 2019 will be 15 billion 137 million rubles, of which 12 billion 991 million rubles are tax revenues. Gratuitous receipts fr om the budget of the RT are provided in the amount of 7 billion 886 million rubles. The changes affected only the personal income tax, an additional standard of deductions in the republic was set at 1.6%, noted I. Mukhametshin, the head of the Financial Department. The most voluminous revenue sources of the budget of Kazan are still the tax on personal income, land tax and taxes on comprehensive income. They will make 91% of all tax revenues of the budget, more than 45% of which is personal income tax. The revenue from this tax in 2019 will be 5 billion 897 million rubles. The share of land tax will amount to 26% of tax revenues of the budget (3 billion 402 million rubles). Revenues from taxes on comprehensive income are projected for 2019 in the amount of 2 billion 538 million rubles. Their share in tax revenues of the city budget is 19.5%. The forecast of non-tax revenues of the Kazan budget for 2019 is 2 billion 146 million rubles. The main part of non-tax revenues is formed at the expense of revenues from the use of property owned by municipalities (1 billion 562 million rubles). Financial assistance is a major source of revenue for the city budget. In the draft budget for 2019, gratuitous revenues from the budget of the RT accounted for 7 billion 886 million rubles. The expenditure part of the city budget, as well as the revenue, in 2019 will amount to 23 billion 23 million rubles. The growth rate to the approved budget of the current year will be 106.5%. “The expenses of the city budget are formed within the framework of 7 state programs and 15 municipal programs. As in previous years, most of the expenses are in the socio-cultural sphere. This includes spending on education (15 billion 11 million rubles), social policy (11 billion 80 million rubles), culture (680 million rubles), physical culture and sports (491 million rubles), youth policy (289 million rubles), health care (19 million rubles). The remaining expenses are divided into sections of national issues, national policy, housing and communal services, and others”, reported the head of the Financial Department. The indicators of the draft budget of Kazan for 2019 correspond to the principle of general balance of the budget. The budget of the city for 2019 on income and expenditure will be 23 billion 23 million 409 thousand rubles, for 2020 – 23 billion 468 million 218 thousand rubles, and for 2021 – 23 billion 702 million 528 thousand rubles. On October 25, 2018, the draft budget was published in a collection of documents and legal acts of the Kazan Municipality. On November 12, public hearings were held, after which the draft was reviewed in detail at the meetings of the standing commissions of Kazan City Duma. “In general, the budget for 2019 takes into account all the fact of the present reality. Among the peculiarities, I would like to note that, as before, all socially significant and top-priority expenses are planned in it, the social orientation of the budget is preserved”, said Ilsur Metshin, the Mayor of Kazan. However, he noted that a number of areas of the urban economy was not fully financed. These tasks are to be solved in the course of budget execution. “I want to emphasize that similar problems were with the approval of the budget for 2018. But, as you know, some of them were resolved with the support of Rustam Minnikhanov, the President of the RT. The city received additional funding for such programs as maintenance of improvement objects, city parks, roads, the purchase of gas-powered fuel buses, reimbursement of expenses related to the World Cup, including cleaning of streets, parks, and reconstruction of biological sewage treatment plants. We turned to the leadership of the republic for support in such areas as capital repairs, maintenance of parks and squares, lighting in residential areas and we hope for a positive decision”, said the Mayor. He also marked that the Kazan Executive Committee should carry out all activities that will preserve the balance of the budget and funding in full. “We must ensure the attraction of other sources of income. Together with the deputies, we need to determine which directions to use in the first place. In general, the budget is ready”, concluded I. Metshin. Having heard the forecast of the socio-economic development of the city and the draft budget, the meeting asked a number of questions. Thus, deputy Vladimir Nikishov asked how the cancellation of land tax for pensioners will affect the city’s income. I. Mukhametshin said that city budget losses about 90 million, but when forming the budget for 2019, these changes have already been taken into account. Deputy Kamariya Khamidullina asked about grant support for Kazan schoolchildren. “I want to note that the pledged funds are not always enough, the number of prizes is growing every year. So, this year we additionally found 7 million from the city budget to support the winners of the Olympiad”, added I. Mukhametshin. Ilnar Nurgaliyev, the chairman of the Control and Accounting Chamber, noted that the budget of Kazan is balanced in terms of revenues and expenditures for both 2019 and the planning period. “The proposed project submitted by the Executive Committee, it complies with the norms and provisions of budget legislation”, he concluded. A separate message for the meeting was prepared by the deputy Alexey Serov. In his opinion, the Executive Committee should pay more attention to increasing the revenue side of the budget, and also include such a direction as “development” among expenses. For comparison, he cited the experience of other million-plus cities with a budget exceeding Kazan: Nizhny Novgorod, Perm, and Ufa. “Each region has its own budget rules. The way we have built in Tatarstan absolutely suits me as the Mayor of Kazan”, Ilsur Metshin answered the speaker. He also noted that the “development” direction is also provided in the Kazan budget. In this issue, support is also provided by the republican programs in the capital. “There is not a single city, if you don’t take Moscow, St. Petersburg, rich Tyumen, and Khanty-Mansiysk, which would receive from the region the kind of assistance that Kazan receives. We need to be fair. Last year alone, Kazan allocated 1.5 billion for public spaces, 1 billion for overhauling yards, building ten kindergartens, overhauling schools and clinics. This is all a development budget. In addition, there is not a single subject in the Russian Federation wh ere they help not only the capital, but also the municipalities. We have more than 500 republican programs that are initiated by our President. We’re getting much more and we have more opportunities to use this development budget”, concluded I. Metshin.