Head of the Financial Department Boris Kichanovsky: "The course towards economy and efficiency will be maintained in 2017"
– Boris Valentinovich, let's summarize the preliminary financial results of the concluding year.
– The execution of the 2016 budget took place in difficult conditions of crisis phenomena in the economy, and all participants in the budget process had to show maximum professionalism to effectively use state funds. In practice, this means achieving set goals and maximum results with the use of a minimum volume of budget resources.
The regional budget has maintained its social orientation. 980 million rubles, or 66% of the total regional expenditures, were allocated to finance healthcare, education, culture, social protection, physical culture and sports. In addition, in 2016, support was provided to the agro-industrial complex, housing and communal services (including preparation for the heating season), transport and road organizations. Part of the resources was directed to servicing the state debt. Despite the difficulties with budget execution, the debt on leasing of urban electric transport was almost completely paid off, and expenditures on the replacement of heating networks and boilers in housing and communal services were significantly increased. In Senno, the sports and recreation complex was reconstructed and a registry office was built. The reconstruction of the three-story therapeutic building of the regional children's clinical hospital and the modernization of the treatment building of the regional infectious diseases hospital were completed.
It should be noted that unprecedented support measures have been taken regarding agricultural enterprises. Decrees of the head of state on the development of agricultural production in the Vitebsk region and on the creation and operation of OJSC "Asset Management Agency" allow for the restructuring of a significant part of the debt of agricultural organizations and processing industry enterprises through the mechanism of selling securities of the regional executive committee.
before banks. The budget assumed a significant burden for servicing and repaying bonds. A mechanism for granting payers deferrals and installment payments for taxes and budget loans is also being used. Some debts of agricultural joint-stock companies have been restructured by transferring their shares to communal ownership. The goal of the adopted measures is to give an additional impetus to the development of the agro-industrial complex and, subsequently, after the financial recovery of organizations, to receive dividends in the form of increased tax revenues.At the same time, the limited budget resources necessitated a competent redistribution of funds between sectors and economic expenditure items. Such decisions were not easy to make, as there were no surpluses in the budget initially. However, this allowed us to concentrate resources on fulfilling priority social obligations and successfully completing the financial year.
I can say with full confidence that the financiers of the Vitebsk region have coped with their main task of regulation and management in the budget sphere with dignity. I want to thank our colleagues whose professionalism helps to solve the set tasks – employees of the regional inspectorate of the Ministry of Taxes and Duties and tax authorities in the regions, the Main Department of the Ministry of Finance for the Vitebsk region, and specialists of the banking sector.
– What are the main provisions of the region's main financial document for 2017, which, it seems, will be no less challenging?
– The course towards economy and efficiency will be maintained in the coming year, as the impact of crisis phenomena remains strong. The regional budget for 2017 is determined under strict conditions of resource saving. The main task is to maintain budget balance and ensure its so-called basic obligations.
The financial stability of the budget is based on its dynamic replenishment through own revenues. Such revenue sources as personal income tax, value added tax, profit tax, property tax, as well as taxes under special tax regimes are of decisive importance. Therefore, a slowdown in their inflow significantlyaffects the overall situation.
The concept of the regional budget for
2017 includes several main provisions. First of all, it is the stability
of the conditions for forming the revenue base of local budgets. The norms
according to which taxes will be distributed between the regional and basic
budgets are enshrined in the Budget Code of the Republic of Belarus and will
remain unchanged in the near future.
Local authorities clearly understand the structure of the revenue side of budgets, the weight of each revenue source, and know the areas where efforts should be concentrated in mobilizing revenues. These include increasing labor productivity and wages, investing in fixed assets, creating new jobs, producing high value-added products, and competent management of state property.
At the same time, there are areas that require joint efforts. Among them is agro-ecotourism, one of the promising and developing types of services. The potential of the Vitebsk region in this area should be utilized much more fully. In addition, it is necessary to more effectively use such resources for obtaining additional income as fees for outdoor advertising, the development of roadside service facilities, and strengthening control over the collection of local taxes and fees.
If the tasks of attracting own revenues are
successfully completed, their amount in 2017 will be at least
1 billion 235 million rubles. Subsidies from the republican budget are planned in the
amount of 488 million rubles, but, as practice has shown in recent years, they
are significantly reduced during budget execution.
In planning expenditures for the next year, the vector for social development has been maintained. Priority in financing is given to such sectors as education (expenditures are provided in the amount of 575 million rubles, or 32% of the total amount), healthcare (440 million rubles, or 25%), measures in the sphere of social policy (94 million rubles, or 5%), physical culture and sports, and culture (77 million rubles, or 4%).
Social stability is guaranteed by the fixed volumes of priority, socially protected obligations. These include
расходам относятся средства на выплату заработной платы с начислениями, оплата медикаментов, продуктов питания, коммунальных услуг, обслуживание долга органов местного управления, субсидии на транспортные и жилищно-коммунальные услуги, твердое топливо для населения и трансферты гражданам. В бюджете области эти расходы составляют 1 млрд 375 млн руб. (77%), и они не подлежат уменьшению.При всех сложностях запланированы капитальные вложения на финансирование объектов, имеющих важнейшее социальное значение или высокую степень готовности. Среди них строительство детских садов в микрорайоне Билево областного центра, в Орше и Глубоком, поликлиники в микрорайоне Юг-7а в Витебске, ФОКа в Городке, инженерно-транспортной инфраструктуры к заводу белой жести в Миорском районе и другие.
– На какие особенности бюджета 2017 года и новации бюджетной политики необходимо, на ваш взгляд, обратить внимание?
– Важнейшая концептуальная особенность консолидированного бюджета – это обязательное условие завершить предстоящий финансовый год не просто без дефицита, но с обеспечением профицита. Иными словами, к концу 2017-го мы обязаны сэкономить на расходах и накопить определенный запас прочности в виде неизрасходованных ресурсов. Эта новация закреплена в законе о рес-публиканском бюджете.
Кроме того, наряду с существующими нормативами обеспеченности расходов на здравоохранение и образование с 2017 года вводится и минимальный норматив бюджетной обеспеченности расходов на проведение капитального ремонта, реконструкции, модернизации объектов ЖКХ. Сюда относятся и расходы на капремонт жилфонда, объектов водоснабжения и водоотведения, замену теплосетей, котлов и лифтов.
В 2017-м дальнейшее развитие получит введенный в текущем году механизм предоставления безналичных жилищных субсидий. Государственная поддержка будет оказываться социально уязвимым категориям граждан как по выявительному, так и по заявительному принципу.
Одним из проблемных вопросов 2017 года является обеспечение необходимого уровня компенсации расходов транспортных
Expenditures include funds for salary payments with accruals, payment for medicines, food products, utility services, debt servicing by local government bodies, subsidies for transport and housing and communal services, solid fuel for the population and transfers to citizens. In the regional budget, these expenditures amount to 1 billion 375 million rubles (77%), and they are not subject to reduction.
Despite all the difficulties, capital investments are planned for the financing of facilities of crucial social importance or high readiness. Among them are the construction of kindergartens in the Bilevo microdistrict of the regional center, in Orsha and Glubokoye, a polyclinic in the Yug-7a microdistrict in Vitebsk, a sports and recreation complex in Gorodok, engineering and transport infrastructure for the white tin plant in the Miory district, and others.
– What features of the 2017 budget and innovations in budget policy should be paid attention to, in your opinion?
– The most important conceptual feature of the consolidated budget is the mandatory condition to complete the upcoming financial year not just without a deficit, but with a surplus. In other words, by the end of 2017, we must save on expenses and accumulate a certain margin of safety in the form of unspent resources. This innovation is enshrined in the law on the republican budget.
In addition, along with the existing norms for ensuring healthcare and education expenditures, from 2017, a minimum norm for budget provision of expenditures for capital repairs, reconstruction, and modernization of housing and communal services facilities will be introduced. This also includes expenses for major repairs of housing stock, water supply and sewerage facilities, replacement of heating networks, boilers, and elevators.
In 2017, the mechanism for providing cashless housing subsidies, introduced this year, will receive further development. State support will be provided to socially vulnerable categories of citizens on both an identifying and an application basis.
One of the problematic issues of 2017 is ensuring the necessary level of compensation for transport expenditures
for passenger transportation organizations in urban and suburban areas. Fare increases lag significantly behind the growth in carriers' expenses, and a portion of the latter's costs remains unreimbursed.– Boris Valentinovich, 2017 will also be an anniversary year for Vitebsk region financiers…
– Indeed, for almost a century now, this art of budget formation and execution has been passed down from one employee to another in the Vitebsk region. In December 2017, it will be 100 years since the establishment of the financial department of the Provincial Council, as evidenced by documents from the regional state archive. As the acting head of the financial department noted in his circular, the department's purpose is "...control and creative activity. Its control function consists in conducting a preliminary audit of all disbursements from the State Treasury funds to prevent the possibility of improper expenses... The creative activity of the department mainly consists in developing reform projects aimed at increasing treasury revenues."
Another interesting fact. When parting with the staff of the financial department in 1924, its head wrote:
"I cannot fail to note the high conscious attitude towards their humble work, which was demonstrated by the apparatus as a whole and its employees individually. Let us recall moments from the work of the cash desk, during the influx of taxpayers of agricultural tax, when exhausted employees were carried out of work unconscious, or the work of estimate and accounting staff and financial inspectors, when after the established late-night hours, the guard removed the lingering employees...". Of course, one can be ironic about these facts, but they eloquently emphasize the high responsibility of employees for their work, which remains a distinctive feature of financiers even today.
Taking this opportunity, I want to congratulate all specialists of local financial bodies on their professional holiday – Banking and Financial Workers' Day, which is celebrated on the first Sundayyear. By tradition, warm words of gratitude are addressed to our former employees Lilia Alexandrovna Izobova, Tatiana Terentyevna Makhanyok, Raisa Ivanovna Korostik, Galina Iosifovna Laptsevich, Lyubov Vladimirovna Novitskaya, Tatiana Vasilievna Estrina, Irina Mechislavovna Milashevich, Raisa Ivanovna Shamshur.
Photo by Anton Stepanishchev
The regional budget has maintained its social focus. 980 million rubles, or 66% of the total regional expenditures, have been allocated to healthcare, education, culture, social protection, physical culture, and sports.
Along with the existing norms for healthcare and education expenditure security, a minimum norm for budget security of expenditures for capital repairs, reconstruction, and modernization of housing and communal services facilities will be introduced from 2017.
Sergey Antonov, "Vitebskiye vesti".