Tatarstan promises not to wreck Leasing-grant
Despite the twofold reduction of federal limits to SMEs, RT still expects 1 billion
Amid the crisis, the state support of small and medium businesses, which the federal government provides to the regions, suffered budget sequestration. As it became known to Realnoe Vremya, in spite of this, Tatarstan expects to keep the amount of attracted state support at the level of the previous year. It is not planning to lower limits of support to entrepreneurs this year. However, if subsidies have to be reduced, the Ministry of Economy promises not to 'touch' the most popular programmes.
By 10 billion less on MSE support
The federal government has reduced twofold the amount of support to be allocated to the regions for small and medium-sized businesses. The First Deputy Minister of Economy of the Republic of Tatarstan, Director of Department of entrepreneurship development Rustem Sibgatullin told about this to Realnoe Vremya on the threshold of the competition for grant allocation.
'Usually, we were talking about 18-20 billion for the whole country, now it is 9.8 billion, it seems,' he said. He doesn't presume to predict how exactly this will affect the amount allocated to the region. The amount is distributed not proportionally among all subjects (in that case each of them would have a little more than 115 million rubles) but on a competitive basis, with the condition that the regions would co-finance these programmes from their own budget. 'Accordingly, the share of each region must also decrease. But there is an element of competition, a subject may lose, for example, it can submit the application wrong, and so on. And we are waiting for the money released as result of the failure of a subject,' said Sibgatullin.
In previous years, Tatarstan used to recieve about 1 billion rubles, adding to that about 500 million of its own funds. Plus, Tatarstan has already received 259.6 million rubles as a co-financing of capital investments in 'state property objects' in the framework of the subprogramme 'Development of small and medium businesses' — that is, on the development of business incubators, as well as 259.6 million rubles for enlargement of SMEs subjects that will be supported. 'The amount of the Republic in the last years was 500 million rubles, and it doesn't decrease,' promises the Deputy Minister. Thus, 1.5-2 billion rubles are spent annually for the support of SMEs in Tatarstan.
Tatarstan will know the subsidy amount at the end of April
'This year, the Ministry of Economy of Russia, unlike in previous years, announced the competition earlier. Now is the time when the regions should apply before 10 April, in previous years these competition was held in May, July, the contracts were only by autumn and the government fell into the area of criticism that money would be by the end of the year. This year they have done great. If earlier we knew that the regional money are late, we started to distribute the regional money in April, and then synchronized them with federal money. Now, due to the fact it will be clear after 10 April what progress regions have, we from the end of April, having received the results of the federal competition, we plan together [to distribute subsidies],' said Sibgatullin. According to the official, he is planning to submit the application to Moscow on 8 April.
Now in Tatarstan several programmes for SME support are being realized. The oldest and the most popular one is the subsidizing of the down payment on equipment leasing contract – Leasing-grant, to which 500 million rubles are allocated annually. Not only entrepreneurs receive them but also agricultural cooperatives, residents of industrial areas, farmers and others. About the same amount goes to the newly established programme for entrepreneurs microcrediting— from 100 000 to 1 million rubles under 8-10% per annum. Besides, major programmes are grants for the development of the so-called social business, on innovation development and technical modernization of facilities, and special grants for farmers. There is also the Guarantee Fund of RT, which can provide collateral base for the businesses for getting cheap loans, as well as the programme for the construction and development of industrial parks, etc.
Leasing-grant won't be cut
Sibgatullin reminds that 1 billion from the federal budget – an optimistic scenario. 'If the programme 'loses weight' in general, we will try not to 'lose weight' proportionally on such popular programmes as Leasing-grant but to keep the amount that was adopted,' says Sibgatullin. They will have to cut the directions that affect fewer people but require huge investments. 'For example, the creating of engineering centres that requires large investments connected with the equipment purchase,' he explained.
Last autumn of 2015, at the meeting with entrepreneurs in the framework of the project 'Business and power: a candid conversation' the Minister of Economy of Tatarstan Artyom Zdunov even noted that funds allocated to Leasing-grant are not enough. He stated that Tatarstan could have allocated on re-equipment of enterprises using leasing instruments not 500 million but 5 billion rubles, but for this the appropriate decree of the Russian government is needed. The President of Tatarstan Rustam Minnikhanov even sent an appeal to Russian President Vladimir Putin, said the Minister.
'A billion more or less, it doesn't matter'
Realnoe Vremya asked experts about what support programmes should be preserved and which funding can be reduced.
-
-
Azat Gazizov Vice-President of public organisation of small and medium businesses ‘Opora Rossii’:
-
As a public person, I am against that something is cut, so I will tell what should be left. I think those programmes should be left that are associated with the real sector of the economy. These are sectoral programmes, such as Leasing-grant, those areas that are associated with the support of the business in the production, everything related to tangible assets. The second is the infrastructure for SME support: industrial parks, sites. And loans support programme, those 6% — it is what is also needed, it is an access to cheap money. This is in order of priority.
The engineering centers – this is certainly the future, but if the primary amount is not provided with equipment, basic infrastructural things, people won't be able to move. So, for a while, yes, it is possible [to cut the programme on creating engineering centers]. Because now the real assets are more important.
It's hard for me to assess, but the future can be predicted from the past. In the past, the team of the Ministry of Economy showed itself effectively in the civilized lobbying of interests of the Republic. The limits amount means nothing, the mechanisms remain the same. But in the past it was different, different amounts and conditions.
-
-
-
Shamil Ageyev the chairperson of Trading-industrial Chamber of Tatarstan
-
The most important for small and medium businesses are not these support measures but the key lending rate of the bank, the availability of loans and reduction of administrative barriers. A billion more or less — it doesn't matter, especially since this [government support – editor's note] goes only to the chosen. We more need that the mechanism of support of export-oriented enterprises would work out, there would be fewer administrative barriers. And that in banks there were differently from that Kostin said, not to give to small businesses but to give at reasonable rates of interest.
When it is clear, [whether the amount of state support decreased] then we will specifically solve the priority areas. We, maybe, fight for that the patent system would be cheaper than our neighbours have, but it doesn't work. We should understand that there shouldn't be an accounting approach to everything. And… there should be less state expenditures, less bureaucracy, fewer deputies and everything will be OK.
-