Farid Abdulganiev about support of small businesses in Tatarstan: “The growth is 26-27 times”

A new budget with an understated deficit

The opening of the new political season in the parliament began with a preliminary breaking-in of the draft budget for 2020 and for the planning period 2021-2022 in all eight parliamentary committees that are interested in defending the interests of the sectors of the economy and business they oversee.

The government submitted the main financial document of the republic on 4,000 pages to the State Council of the Republic of Tatarstan almost 10 days ago, changing the revenue part of the republican budget from 262,9 to 264,8 billion rubles, and the expenditure one — from 285,9 to 267,9 billion rubles. As a result, the budget deficit for the year 2020 amounted to 3,1 billion rubles, while in the previous year the budget was approved with a deficit of 22,9 billion rubles, and this difference cannot go unnoticed.

The main parameters of the budget and the forecast for socially-economic development for the coming 3 years were approved at the session of the Tatarstan government on 11 September with the participation of President of Tatarstan Rustam Minnikhanov and Chairman of the State Council of Tatarstan Farid Mukhametshin. The draft budget is presented in the Russian and Tatar languages. It is planned that on October 10 parliamentary hearings are to be held, at which deputies will push new proposals to the budget.

Industry against recession, or How to reach 5 trillion

The budget debates unfolded in the committee on economy, investment and entrepreneurship, which was recently headed by the former head of Tattelecom Lutfulla Shafigullin. They were joined by former Minister of Agriculture and Food Marat Akhmetov, in the area of responsibility of whom the powers to promote economic and investment activity at the legislative level have been transferred.

Minister of Economy Farid Abdulganiev reiterated the forecast of socio-economic development for the next 3 years, which was first made in the Cabinet of Ministers. He reminded that “geopolitical tensions persist against the backdrop of trade confrontations between the United States, China and other countries, which affects the volatility of oil prices and the exchange rate and threatens the global supply chains of technological products”.

Despite the external factors, economic growth remains subdued. For example, at the end of January-August 2019, Tatarstan's GRP amounted to 1,617 trillion rubles, with a dynamics of 100,8% compared to the previous period. At the same time, the industry feels better. According to the head of the ministry of economy of the Republic of Tatarstan, the index of industrial production for this period amounted to 101,5% or 1,87 trillion rubles. By the end of the year, the indicator should grow to 2 trillion 941 billion rubles, and the index of industrial production is expected to reach 101,6%, he added. Despite the deterioration of the macroeconomic situation, Tatarstan is moving according to the basic scenario of the Strategy 2030, according to which the volume of GRP is to exceed 5 trillion rubles by 2030.

National projects have been implemented by more than half

No matter how they intimidate with economic disasters, the republican budget of this year is being replenished without much tension. Over 9 months of this year, the consolidated budget received 205,8 billion rubles, and the republican — 171,5 billion rubles.

By the beginning of September, Tatarstan has spent 56,3, a little more than half of the funds allocated this year for the implementation of 11 national projects, Deputy Finance Minister Aleksey Shishkin said. According to him, this year it is necessary to spend 25,7 billion rubles, 18,1 billion rubles of which are federal funds.

“Practice shows that the months remaining until the end of the year are more intensive in execution,” the deputy minister of finance explained.

Turning to the parameters of the budget, he said that the main revenue sources will again be income tax (100 billion rubles), personal income tax (82 billion), excise taxes on alcohol, beer and petroleum products (34 billion), property tax (21 billion). Next year, gratuitous financial transfers will amount to 31,7 billion rubles. As a result, the consolidated budget looks impressive: revenues — 310,2 billion rubles, expenses — 313,1 billion rubles, deficit — 3,9 billion rubles.

“A very unsupportive amount”

Despite the significance of the global budget figures, the deputies were set to “earth” the invited speakers on the topic of entrepreneurship. Oleg Korobchenko, a deputy from the Party of Growth, opened the debates. He first asked the ministry of finance to give him a full layout of how targeted funds will be spent to support small and medium-sized businesses (SMEs). However, he was wrong in the figures when he decided that 8,6 billion would go on this. “No, 8,6 billion goes for national issues, but including the support of small and medium-sized businesses,” Shishkin corrected him. “But 1,3 billion rubles out of them we will give from the regional budget,” the ministry of finance reassured him, about which Oleg Korobchenko was clearly upset.

“Our committee is engaged in the development of entrepreneurship, and the sum is allocated such that it not already support,” he reproached the authors of distribution of the budget. “I think that you, Farid Sultanovich, should support us!” he looked hopefully at the minister of economy.

“The figure that you are announcing here, it is not very supportive,” complained Korobchenko.

There is a growth by 26-27 times!

The economy minister clarified the confusion with the figures. It turned out that state support is not hidden in one budget line. The amount allocated for the development of small and medium-sized businesses in Tatarstan this year will be almost 2 billion rubles.

“One should understand that with the appearance of the national project on entrepreneurship, the amount of support from the federal centre has increased significantly,” Abdulganiev explained. “Last week, in particular, it was agreed that the republic would be allocated another 278 million rubles. 250 million rubles out of them will be allocated for the construction of an industrial park on the territory of Khimgrad technopolis and 29,68 million — for guarantees of the Guarantee Fund. The co-financing from the republic will amount to 65,6 million rubles. If we compare last year's amount with the volume of support for the year 2019, the growth is 26-27 times!” the minister convinced that everything is not so bad, and even good.

“I see that you have joined the discussion of what is little and much,” Aleksey Shishkin joined the conversation. “There are very large sums for the benefits, if we are seriously discussing. I won't even call the figures yet.”

Why industrial parks are dying away

The representative of the Communist Party asked how effective industrial parks and industrial sites are.

“The doctrine of Tatarstan consists in that in each municipal area there worked one industrial park. Now there are 91. Next year we plan to bring it to 100,” said the minister of economy of the Republic of Tatarstan. “There is a demand, but there are industrial sites where only 45% of the area is occupied.”

According to Abdulganiev, high tariffs for energy resources hinder the occupancy of industrial parks: “The question was raised that it is necessary to ensure the transition to a low tariff for energy. Why 6 rubles for 1 kWh, and not 2 rubles? Our proposal is to build step-down substations, but who will serve them? Nevertheless, the president has supported us, and next year, I hope we will see this line and will work to reduce the cost of electricity in industrial parks,” the minister stressed.