President Vladimir Putin responded to reports of the budget crisis in the Russian regions, recognizing the presence of some problems. His words leads TASS.
“The trends towards the restoration of the Russian economy are still fixed. We know it well. Not everywhere, not in all subjects we see a confident growth of business activity, therefore the revenue base of the regions is still in many ways unstable,” said the head of state.
According to him, the authorities regularly pay attention to the state of regional finance, and recently a lot of support measures have been implemented. “Let me remind you that last year we allocated 280 billion rubles of direct subsidies and another 223 billion rubles of special budget loans,” Putin said.
He also appealed to the governors with a request to submit proposals for measures that would contribute to economic growth in separate regions and in the country as a whole. The heads of the regions that “drove” their subjects of the Russian Federation in the “budget trap”, Putin suggested “to put the appropriate trap.”
Earlier on March 31, the Center for Macroeconomic Analysis and Short-term Forecasting (DSMAC) predicted a possible budget crisis in some Russian regions. His offensive may be due to the fact that in 2020, against the background of the coronavir pandemic, the income of regional budgets decreased sharply, and expenses increased due to the measures to support the economy. This year, the reduction in subsidies from the federal center, which helped to avoid even larger problems in the 2020th.