we are Talking about targeted subsidies to align fiscal capacity. If simplified, they are designed to cut the difference between tax revenues per capita in the region and the national average level (taking into account the factors affecting the cost of state and municipal services in particular regions). As more is businesses that pay taxes, the higher the fiscal capacity of the region.
by 2020, subsidies on equalization of approximately a quarter of all scheduled as at 1 April transfers to the regions (717,9 billion). In 2018 73 in the region have received such subsidies 644,5 bn (31.5% of all intergovernmental transfers), in 2019 subsidized regions was 72, and the amount of subsidies increased to 675,3 billion (28.3 per cent).
according to Svetlana Orlova, at the end of 2018, the level of subsidization increased in 51 subject of the Russian Federation, including 10 in 2017, and the 2018 admitted the failure to fulfill obligations under the agreements (for example, are unable to the desired level to increase salaries in the public sector), another 30 made a failure at the end of one of these years. For example, in 2018, the standards for costs to the authorities exceeded Karachay-Cherkessia, Mordovia, Khabarovsk Krai, Novosibirsk and Magadan region. Fulfilled all obligations only 11 subjects of the Russian Federation. For failure is very hard asking the Ministry of Finance, reducing subsidies, and the authorities of regions can, for example, to raise salaries in the government, if not met the obligations under which have been given subsidies, says Svetlana Orlova.
“the performance of the obligations under the agreement should have an impact on the change in the level of subsidization of subjects, but in 2017-2018, this dependence is clearly not observed, we indicated to the government”, – says Orlov. The chamber has prepared a report on the results of its assessment and in the letter, the government proposed to consider whether to enter into such agreements in the future with the regions, with the exception of heavily subsidized (they now include the Republic of Altai, Dagestan, Ingushetia, Tyva, Chechnya, Kamchatka Krai).
First Deputy Minister of Finance Leonid Gornin, by contrast, indicates that the number of heavily subsidized regions in 2017 decreased from 8 to 6, among the regions with the estimated budget security of the above units (the national average) increased from 13 to 17, and the share of grants in own revenues of consolidated budgets of regions has a decreasing trend (the Ministry’s position is given in the Bulletin of the accounting chamber).
At the end of this year due to the spread of coronavirus infection many regions will not be able to fulfil the agreements grants obligations, said Svetlana Orlova. You may need further “tuning” methodology of allocation of subsidies (however, it is permanent, whethernil in 2012 the methodology has not changed), but now it’s important to do as carefully as possible, she said.
the chamber also proposed to publish the agreement on subsidies and reporting on the performance of the obligations which they involve. The instructions of the Vice Prime Minister Marat Khusnullin gave the Ministry of Finance on March 27. “People have to see – or regional authorities buy expensive cars and increase his salary, or to perform its obligations”, – said Orlov.
