How Vitebsk region performed in 2018: key performance indicators are met, some sectors are lagging
Chairman of the regional executive committee Nikolai Sherstnev focused on these aspects during a joint meeting of the regional executive committee and the presidium of the regional council of deputies, dedicated to discussing the preliminary results of the outgoing year and plans for 2019. He addressed the heads of districts, enterprises, and organizations.
According to data for 10 months, Vitebsk region is fulfilling 5 out of 6 key performance indicators
According to data for 10 months, Vitebsk region is fulfilling 5 out of 6 key performance indicators set by the government and the regional council for 2018, including goods and services exports, as well as the number of citizens employed in newly created jobs through the organization of new enterprises and production facilities.
Growth is ensured in industry, agriculture, retail trade, and investment activities. Overall, the region has moved forward compared to 2017. However, year after year, the same districts ensure such results, while a dozen outsiders generate negative dynamics.
— Although there are objective reasons for this, there are much greater reserves for organizing effective activities. Therefore, I generally assess the work of the districts negatively, primarily because we are not yet succeeding in implementing the potential in all areas locally, including construction, industry, agriculture, and other sectors, — stated Nikolai Sherstnev.
Moreover, today Vitebsk region is implementing ambitious plans for the development of social infrastructure in both cities and small settlements, trying to catch up on what was missed in previous years.
The highest priority is improving the quality of life, aimed at minimizing demographic imbalances. Sports facilities and educational institutions are being built, and regions need new preschools and updated engineering infrastructure.
Options are being calculated and approaches for the most rational solutions are being developed. However, everything ultimately falls on the local budget, the capabilities of which directly depend on the real sector of the economy.
— If we plan for a 1-2% annual increase in industries, then at the expense of what and who will replenish the budget, the burden on which is constantly growing? — Nikolai Sherstnev asked a rhetorical question and demanded that the heads of districts form a high-quality resource base for local budgets.
According to the chairperson of the regional executive committee's economy committee, Anzhelika Nikitina, this year industrial production growth is projected to exceed 11%, with agriculture making a positive contribution to the gross regional product. However, there are still shortcomings in these crucial sectors.
Livestock farming is faltering in rural areas, causing the region to lose up to 30% of its revenue from agricultural product sales annually. Integration structures are the driving force of the agricultural sector. They currently manage about 60% of agricultural land and approximately the same percentage of the total livestock population, performing over 40% of all work.
Over 10 months, the production growth rate for these 4 structures exceeded 122%, with the Vitebsk integration structure increasing its output by more than 1.5 times.
— Work on the systematic development of the agro-industrial complex will continue; a draft normative act has already been prepared, providing for the creation of a unified industry management system in the Vitebsk region, which will allow for the concentration of resources and free agricultural organizations from debt burden by almost 60%. The project is supported by the government and will soon be submitted for consideration by the head of state, — reported Anzhelika Nikitina. It is expected that about 230 enterprises will be included in the new management structure.
Entrepreneurship remains an important, though not fully utilized, reserve for increasing economic efficiency and replenishing the budget. Currently, about 30% of the economically active population is employed in this sector. It accounts for one-third of fixed capital investments, one-fourth of budget revenues, more than half of goods exports, and about 96% of services exports.
A growth trend in the number of small and medium-sized businesses has emerged in the Vitebsk region, but it is driven by only 12 districts.
Systematic efforts to unleash citizens' business initiative contribute to the creation of new organizations. Positive dynamics are being maintained in this area, which allowed for the fulfillment of the employment target for citizens in newly created jobs over 9 months of 2018.
However, a number of districts are dragging the region down in this regard and jeopardizing the fulfillment of the annual target. This is one of the main criteria for evaluating the effectiveness of district executive committee chairmen, noted Anzhelika Nikitina.
Over 10 months, all sectors operated with net profit and positive sales profitability. The ongoing optimization of loss-making organizations yielded certain results. However, their share in individual districts remains high. Analysis shows that one of the reasons for this situation is a high level of costs. A disbalance persists between the growth rates of labor productivity and wages, leading to problems with wage payments, which are essentially not earned.
— Today, the Vitebsk region has created the necessary conditions for sustainable socio-economic development, and the primary task is to fulfill all indicators for 2018, taking into account the lag and the need to build momentum for 2019, — emphasized Anzhelika Nikitina.
In the coming year, it is necessary to ensure a growth of at least 10% in the main sectors of the economy. The socio-economic development forecast for the Vitebsk region and the draft budget for 2019 will be submitted for approval at the session of the regional council of deputies.