Tatarstan’s 2009 budget to be adjusted, submitted to State Council

Tatarstan financial, treasury and tax authorities on Thursday held a meeting at the premises of the Cabinet of Ministers.

The meeting discussed the results of performing against the 1st quarter budget plan and tasks for 2009 related to budgeting.

While opening the meeting, the chairman Prime Minister of Tatarstan Roustam Minnikhanov noted that in the 1st quarter 2009, the world financial crisis had affected Tatarstan. The industrial production index was 84.1 percent, while amount of construction was 91 percent, he said.

The head of government said that the Russian authorities and the President of Tatarstan had urged a cost optimisation that would however not affect the state's social obligations before the citizens. Some of the investment project are to be suspended or reduced, public expenditure optimised, while the financing of the social sphere is not to be decreased. The Tatarstan’s adjusted budget plan, considering the changes made to the federal budget and financing of the Universiade sports event facilities in Kazan, is to be submitted to the State Council.

The Russian Tax Service head of territorial division Marat Safiullin reported on the budget revenues. He said in the 1st quarter 2009, some 40 billion roubles had been collected in Tatarstan, which was one third less than a year earlier. Some 16 billion roubles was contributed to the Tatarstan’s consolidated budget. The Tatarstan’s budget short-received 5.6 billion roubles.

“The crisis is setting out new tasks for us. We need to sort the wheat from the chaff, that is honest from dishonest taxpayers who are trying to fish in troubled waters and evade paying taxes. We are not going to “nightmirise” businesses but those who are not paying taxes and claim false bankruptcies are to be in the centre of our attention,” emphasised Mr Safiullin.

According to the Tatarstan Finance Minister Radik Gizatullin, 26 billion roubles had over the 1st quarter of 2009 been contributed to the consolidated budget, including 17.2 billion roubles in own funds and 8.8 billion in federal funds.

“Therefore, we can see that the financial crisis worst affected the Tatarstan’s budget versus the local budgets,” claimed Mr Gizatullin.

“Amendments to the 2009 federal budget have been approved in three readings. Amendments to the Tatarstan’s 2009 budget are being prepared. We have analysed in detail expenditure plans on all the items,” he claimed, adding that social payments were to be funded to the full extent. Current expenses are to be reduced by 20 percent, while some investment programmes are to be suspended or contracted.