Rustam Minnikhanov: Current economic situation remains tense, it is important to ensure performance of all organizations

On 26 July, speaking at a meeting of fiscal, treasury and tax bodies held in the Government House of the republic, where its participants discussed results of the implementation of the consolidated budget of the republic in the first half of 2024, the Rais (Head) of Tatarstan Rustam Minnikhanov stated that the amount of revenues into the consolidated budget during the abovementioned period made 298bn rubles, including 244bn of the republic’s own income.

The IPI of the republic was 100.8 per cent and the plan of own revenues collection was fulfilled by 57.7 per cent; he said and informed that the budgetary performance in the current year is tense. Thus, the organizations’ profit tax, which is the main profit source of the republic, is decreasing by 5.4 per cent compared to the same period last year. ”The appropriate ministries should step up their work in analyzing industrial indices of enterprises, generating main payments into the budget. The task of the Ministry of Finance is to ensure a well-balanced budget, strict financial and budgetary discipline and full implementation of primary and social liabilities,” Rustam Minnikhanov said.

He also reminded about amendments introduced into the taxation system and gave an errand to the Ministry of Economy and the tax service of the republic to carry out the work in raising awareness of entrepreneurs in this sphere.

“The current economic situation remains tense and the task of the proper ministries is to ensure performance of all organizations, including small and large industrial enterprises,” the Rais of the republic said.

He informed that in the current year 35.1bn rubles, including 15.6bn from the budget of the republic, have been allocated from the federal center to the implementation of national projects, and 58 bn rubles from the regional budget on implementation of 44 local programmes on the improvement of life quality of residents of Tatarstan. “By far not every region implements such projects. Calling attention of regional power bodies I would like to say that construction of every facility is the personal responsibility of heads of regions,” Rustam Minnikhanov emphasized.

Reminding about large infrastructural projects being implemented within the frame work of the BRICS summit preparation, the Rais of the republic said: “All branch ministries should work closely with their federal colleagues in the issues of timely and proper financing of these key projects.”

He also emphasized the importance of work in decreasing tax arrears which make 11.2bn rubles as of 1 July of the current year.

In his turn the Head of the Tatarstan Directorate of the Federal Tax Service Marat Safiullin informed participants of the meeting that 710bn rubles have been transferred into the regional budget during the first six months of the current year, which is by 171.5bn more than during the same period last year. He said that the consolidated budget revenues made 223bn rubles and the insurance payments into state non-budgetary funds have increased by 1.4 times.

Tatarstan Ministry of Finance Radik Gayzatullin reported that in the first half of the current year the budget of the republic was implemented by 206.9bn rubles and that of local budgets – by 37.6bn. The profit tax revenues made 83.3bn rubles, the personal income tax – 73.4bn, the excise revenues – 21.1bn and the non-tax revenues – 21.2bn rubles, he informed.

After the Head of the Tatarstan Directorate of the Federal Treasury Rustam Nuriakhmetov reported about Treasury bodies having transferred 387bn rubles into the regional budget and the Compulsory Medical Insurance Fund, Rustam Minnikhanov stated that 35 large regional enterprises have decreased their payments into the budget and 24.5 enterprises are running at a loss.  He gave an errand to carry out a constant monitoring of the current situation and the forecast of enterprises’ performance for the coming months and to take measures for their support.

Rustam Minnikhanov also told to continue work of commissions on legalizing the “grey wages” and decreasing the illegal labour market.

He gave an errand to municipalities together with the Ministry of Land and State Property Relations and the Ministry of Finance to analyze the dynamics of rent payments arrears, which is observed in 14 municipalities.

Speaking about subsistence wage, Rustam Minnikhanov told that organizations use part on their non-budgetary revenues to increase wages which helps to raise salaries and retain human force.