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Finance Minister: Russian regions have more stable financial standing

Credit: Grigoriy Sysoev | RIAN

More than half of the goals set by presidential executive orders are in the competence of the regions, Finance Minister Anton Siluanov said at the Gaidar Forum organized by RANEPA.

 “About 60% of goals contained in the presidential executive orders are in the competence of the regions. As a result, the situation has changed completely from the previous six years,” the Minister said.

According to him, no additional obligations can be imposed on the regions now.

“The constituent regions of the Russian Federation are overloaded with additional expenses. Therefore, the federal government had to start giving additional financial support to the regions,” the minister noted.

“The main reason for the growth of regional debt was the need to ensure the rise in their public sector wages, as the regional authorities were burdened with this task,” Anton Siluanov said. “We have now started dealing with this problem and concluded agreements with the regions on debt reduction. Last year, the regions have significantly increased their revenue base. The share of regional debt fell to 27% from 30%, and even 35% in peak years.”

He pointed out that the regions also receive financial assistance through national projects.

“The regions’ own revenues are also beginning to grow. Their financial standing is more stable than it was three or four years ago. This will enable them to implement important state projects,” the Minister concluded.

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