The Vitebsk region's budget for 2021 maintained its social focus
The final year of the five-year plan took place against the backdrop of the coronavirus pandemic, which negatively affected the dynamics of economic activity. Therefore, the management of the Vitebsk region had to focus on the ability to quickly analyze the situation and make prompt decisions. As a result, the economy performed effectively, and the stable socio-political situation allows for plans for the growth of citizens' well-being over the next five years through income, price stability, housing, and employment.
— In the upcoming five-year period, everyone needs to tune in for effective work. This is the only way to achieve results, to make the Vitebsk region a respected region in the country, where people live comfortably and with which our children associate their future, — emphasized the Chairman of the regional executive committee, Nikolai Sherstnev, preceding the analysis of the year and the five-year plan as a whole, as well as setting tasks for the future.
The results of Vitebsk region's work in 2020, a challenging year for the economy as a whole, indicate that the goals for the next five years are achievable and that there is potential for their attainment. Problems with the supply of imported raw materials for processing negatively affected industrial production, exports, and freight traffic. Since March, demand for tourism, health, culture, and entertainment services has sharply declined, and public catering and retail trade have also suffered. Despite the difficulties, it was possible to avoid an economic downturn overall. Most development indicators show positive dynamics, and, for example, Vitebsk region leads among regions in terms of real wage growth rate (108% for 10 months). For 11 months, agricultural organizations increased production by 5.7%, construction and installation work increased by 9.4%, and even industry (excluding oil refining and energy) grew by 0.4%. Profitable and efficient operations have been ensured in the main sectors.
— Of course, there is no significant growth this year, but it is important that we did not fall, managed to hold our ground, and even grew. This speaks to the potential of the management staff. Now, on the created foundation, we need to take a step forward to ensure higher living standards for the population. And the recipe here is simple: to live better, one must work better, — said Nikolai Sherstnev.
Moreover, crises bring not only negative aspects into life. They temper us, allow us to identify shortcomings and mistakes, and help us set the right priorities for the future.
UNLOCKING THE POTENTIAL OF INDUSTRIES
The main drivers for the industrial complex's growth until 2025 will be based on maximizing the potential of industries, primarily through the deep processing of local raw materials. In particular, there is a significant reserve in woodworking in this regard, both in existing enterprises and thanks to new industry players, including residents of the FEZ "Vitebsk" (VMG WoodArt LLC and Akitamа LLC). The modernization of food industry organizations will continue, and raw material zones will need to be developed to utilize their capacities. The performance of the light industry will be ensured by modernized production facilities at Vitebsk Fur Factory and Orsha Linen Mill, as well as the implementation of robotic complexes at Belvest. In mechanical engineering, metallurgy, and the pharmaceutical industry, the main role is assigned to private organizations (Svyatovit, Vitebskiye Podemniki, Amkodor-KEZ, Miory Metal Rolling Plant, Novopolotsk Plant of Technological Metal Structures, Rubikon, Vik – Animal Health, Belkarolin).
Agriculture is becoming a dynamically developing sector. This is mainly due to a fundamentally new comprehensive approach to its organization, laid down in Decree No. 70. This has significantly stabilized the economy of agricultural organizations, in particular, improved solvency, reduced losses, and decreased debt obligations. Over 10 months of 2020, 37 million rubles were allocated solely for the development of raw material zones. The seven created agro-industrial associations, which, as Nikolay Sherstnev clarified, include struggling farms, account for more than half of the region's agricultural production. In 2021, the regional executive committee will analyze the effectiveness of the agro-industrial complex's operation based on the Decree, and a year later, together with the government, will submit proposals on the expediency of its further implementation or adjustment of specific provisions.
Foreign economic activity remains a top priority. By the end of the five-year period, the export growth rate will reach 123%. The coronavirus pandemic had a significant impact on its dynamics: in 2020, due to the suspension of foreign shopping centers, supplies of most consumer goods to foreign markets decreased. In the future, local manufacturers will need to more actively use the potential of e-commerce for promotion and sales of products in foreign markets, as well as for the development of their own businesses, including high-tech processing of local raw materials. The task of increasing investment is still relevant. A total of at least 17 billion rubles is planned to be invested over the five-year period, including 3 billion in 2021.
— In addition to creating new jobs, the main goal of investment is to increase labor productivity and create a competitive value-added product at the level of European standards. This is where our income and wages come from, — emphasized Nikolai Shertnev.
With these resources, it is planned to expand the capacity of the white tinplate plant, as well as to continue developing infrastructure in Miory. Among the most significant projects to be implemented are those in woodworking and pharmaceuticals, the construction of two additional pig breeding complexes, and a fish farming complex with the participation of an Israeli investor.
SOCIAL GUIDELINES
Over the five-year period, the housing provision level increased from 26.6 to 28.4 sq. m (nationwide – 27.8 sq. m). A total of over 1.5 million sq. m of housing was commissioned during this period, with a target of about 1.84 million sq. m for the next five years. The focus will be on multi-story industrial construction, and residential buildings are planned to include built-in and attached premises for social and public purposes.
Among the constant priorities are land management and the improvement of settlements. Within the framework of the regional program developed until 2025, work was carried out in Vidzy and Obol this year. Plans for next year include the improvement of Osvia and Surazh, as well as facilities in the Shumilino district for "Dazhynki-2021".
In 2021, it is planned to provide at least 98.4% of consumers with drinking water (96% in 2020, 84% in 2015), continue work on replacing heat and water supply networks, increasing the volume of major housing repairs, and improving the utilization of solid household waste.
In general, achieving higher living standards will require relying on our own efforts under conditions of financial prudence, maximizing the use of available reserves.
— We need to move forward in all sectors, primarily through optimization: save money and reinvest the freed-up resources into development. This will yield results through cost reduction and increased competitiveness, — specified Nikolai Sherstnev. As an example, he cited the region's education system, which in recent years has been developing primarily through resource redistribution, including the optimization of the network of institutions.
BUDGET FOR ECONOMIC GROWTH
The consolidated budget revenues of the Vitebsk region for 2021 are set at 2 billion 550 million rubles, an increase of 5% compared to 2020.
— Budget revenues directly depend on economic growth, and in the absence of positive dynamics, strict budget restrictions may be applied, — noted Gennady Grebnev, Head of the Main Financial Department of the Regional Executive Committee.
The basis of the local budget's own revenue base consists of personal income tax, VAT, property and profit taxes, which collectively account for 85%. They make up 63% of the total revenue, with another 37% being non-reimbursable transfers from the republican budget (951 million rubles). To improve payment discipline, requirements for timely settlements with the treasury have been strengthened: organizations, including budgetary and equivalent ones, will not be able to increase tariff rates and salaries if they have budget debts.
Over 1.7 billion rubles will be allocated to finance the social sector. At the same time, the share of social spending in the total treasury will increase and will be about 70%. The most budget-intensive sectors will remain education (its share in budget expenditures will exceed 31%), healthcare (almost 27%), social policy (about 7%), physical culture, sports, culture and media (about 5%).
Priority spending areas include the timely fulfillment of debt obligations, the continuation of work to increase wages in the public sector and bring them closer to salaries in the real sector, and the accelerated growth of wages for low-income citizens. An increase in funds for providing housing assistance to the population is envisaged.
In 2020, the decree on reimbursement of expenses for the conversion of housing to electric heating was implemented (20% of costs, but not more than 40 basic units). It has already been used by 10 homeowners, with an average additional payment of 494 rubles. The volume of subsidies planned for 2021 is designed for another 5,000 citizens.
In 2021, 60 million rubles are planned to be allocated for the development and maintenance of local roads under the State Program "Roads of Belarus for 2021-2025", which is 60% more than the actual funding in the current year.
The investment capabilities of local budgets are limited, so the regional and provincial investment programs will include projects in the most relevant areas. In total, 141 million rubles are planned to be allocated for capital construction at the expense of budget funds, including about 26 million rubles for the construction of social and rental housing. One of the innovations of the 2021 budget is the possibility to direct funds from the regional executive committee's innovation fund not only to finance investment projects, but also to purchase equipment, as well as for other purposes in the interests of regional development.
— It must be clearly understood that the implementation of planned measures will create a foundation for social stability and an increase in people's well-being. Everything depends on each of us; citizens judge the effectiveness of the government's work, the quality of management decisions, and their adequacy to the trends of societal development by us, — Nikolai Sherstnev reminded, confirming his words by personal example: for many years of conscientious work and exemplary performance of official duties, the head of the regional executive committee was awarded a Letter of Gratitude from the Chairman of the House of Representatives of the National Assembly of Belarus, Vladimir Andreichenko.