The Vitebsk region's budget for 2020 was approved by regional council deputies

Rational allocation and use of local budget financial resources, coupled with increased efficiency of the real sector of the economy, create conditions for improving citizens' well-being, comprehensive development of territories, and reducing interregional disparities in living standards and quality. These priorities of budget policy remained unchanged in the formation of the region's main financial document for 2020.

Deputies of the Regional Council yesterday approved the budget of Vitebsk region for the next year, and the day before, the draft document was discussed at a joint meeting of the Regional Executive Committee and the Presidium of the Regional Council. It is formed based, among other things, on the expected execution of the 2019 budget, which required solving a number of complex problems. As noted by Gennady Grebnev, Head of the Main Financial Department of the Regional Executive Committee, it was necessary to find resources to compensate for declining tax revenues, pay increased salaries in the public sector, and preserve the investment opportunities of the regional treasury. When completing the year, he urged special attention to be paid to curbing the growth of budget accounts payable, and primarily for capital expenditures.

The regional budget for 2020 takes into account the restraining influence of a number of foreign economic factors on the economy, leading to an increase in prices for imported oil and a reduction in customs duties from the export of oil products. The limitation of raw material supplies from Russia for export-oriented enterprises of the region directly affects the filling of the local treasury. At the same time, the tax burden on taxpayers will not increase in 2020. To adapt to inflationary processes, it is proposed to index tax rates set in Belarusian rubles to the growth of consumer prices.

Revenues

Consolidated budget revenues are projected at over 2.4 billion rubles. All city and district budgets remain subsidized, with the exception of Vitebsk district. The average subsidy level for the region is 31.8%, including 42.7% for districts. Own revenues of local budgets in Vitebsk region consist of 92% taxes, with the main share being income tax, property and profit tax, VAT, as well as taxes paid under special tax regimes.

Non-reimbursable revenues from the republican budget amount to 928.2 million rubles, or 37.9% of the total revenue, with subsidies constituting the largest part. More than two-thirds of such assistance is transferred to the regions of Vitebsk region to equalize development conditions of administrative-territorial units.

Expenditures

The region's budget expenditure volume is set at almost 2.5 billion rubles, an increase of 6.5% compared to the expected execution for 2019. One of the main priorities is the payment of increased salaries in the public sector, transfers to the population, and other protected expenditure items, which are provided in the necessary volumes and are not subject to reduction. In addition, the draft budget provides for accelerated growth of expenditures on the social sphere, while capital investments in these areas will be made selectively for necessary work to improve the material and technical base of institutions, payments of transfers to the population, etc.

A total of over 1.6 billion rubles, or 66.6% of the total budget expenditures of the region, is planned to be allocated to the social sphere, including healthcare - 614.7 million rubles (24.9%), physical culture and sports - 41.4 million rubles (1.7%), culture - 66.8 million rubles (2.7%), education - 776.6 million rubles (31.5%), social policy - 144.6 million rubles (5.9%).

A key feature of 2020 will be a significant (double, and six times compared to 2018) increase in funds allocated to assist the population in housing provision. Budgetary support will primarily be directed towards the implementation of social guarantees for low-income citizens and large families in need of housing improvement. The budget will help young and large families repay commercial loans for housing reconstruction, construction, or acquisition.

Approximately 227 million rubles are allocated for the financing of economic sectors. Here, the main recipient of budgetary support will be agriculture, with expenses for which will increase by 12% compared to 2019, reaching 126.6 million rubles.

At the same time, the investment capabilities of local budgets are extremely limited and will amount to about 8% of the budget expenditures in the coming year. Funds are provided for the construction of social and rental housing, and the volume of support from the republican budget for the construction of engineering and transport infrastructure in residential areas is increasing by almost four times.

Innovations

Among the innovations of 2020 is the establishment of additional stimulating norms of tax legislation regarding VAT and property taxes. The main ones include the abolition of restrictions on certain types of VAT tax deductions and a reduction from 2.5 to 2 times in the maximum amount of increasing coefficients for property tax rates established by local Councils of Deputies.

In addition, in the coming year, an assessment of the economic, social, and budgetary effectiveness of tax benefits will be carried out for their subsequent streamlining and reduction of so-called non-tax expenses.

"Vitebskiye Vesti". Photos from open sources.