Rustam Minnikhanov: ‘We need to continue to observe strict financial discipline’
The rais of Tatarstan held a republican meeting of financial, treasury, and tax authorities
On October 23, members of the Government of Tatarstan summed up the results of the implementation of projected tax revenues to the consolidated budget of the republic for 9 months of 2023. For the first time, large regional taxpayers, who did not receive 19,2 billion rubles in income tax, were “sensitive” to the stress prevailing in foreign markets. The “hole” was closed by the rest, who overpaid by 18 billion rubles more. As a result, the republican budget came out with a plus of 9% on its own income. Although the latest version of the law on the budget of Tatarstan provides for a decrease in the NND by 17% to the level of 2022. The outcome of the 2023 budget depends on how the companies perform at the end of the year. Read the details in the material of Realnoe Vremya.
Financial report with the new prosecutor of Tatarstan
On the morning of Monday, October 23, members of the government of Tatarstan summed up the results of the implementation of projected tax revenues to the consolidated budget of the republic for 9 months of 2023. As usual, the republican meeting of financial, treasury, and tax authorities was held by Rustam Minnikhanov. But this time the white chair of Prime Minister Alexey Pesoshin was empty.
On the right hand of the rais, Albert Suyargulov, the newly appointed Prosecutor of Tatarstan, took an honourable place in the presidium. He was dressed in the usual classic men's suit, and not in the uniform of the prosecutor, so it was not immediately possible to recognise him. To be honest, the appearance of Suyargulov surprised a little, because his predecessor, Ildus Nafikov, rarely attended such meetings. During the whole event, the prosecutor did not utter a word. But he listened especially attentively to that part of the speech of the head of the Federal Tax Service for Tatarstan, Marat Safiullin, which concerned tax evaders. Apparently, the prosecutor is getting up to speed.
The rais of Tatarstan warned from the very first minutes that it would be necessary to save until the end of 2023. The main reason is “a noticeable decrease in income tax payments”, which affected “enterprises of the oil and gas complex and petrochemical industries”, as well as some enterprises of the machine-building complex. Although the overall financial indicators of the collection of tax and non-tax incomes (NND) did not give cause for concern.
In January-September 2023, 395,5 billion rubles were collected in the consolidated budget of Tatarstan, including its own revenues amounted to 331,2 billion rubles, Rustam Minnikhanov said. This is by 9% more than last year, Safiullin clarified later.
But the rais of Tatarstan repeatedly urged during the meeting not to be comforted by the results of the work, since “in the current conditions, the situation may change at any moment”.
“Now it is necessary to continue to observe strict financial discipline to fulfill priority social obligations, to create a margin of safety," he urged. He was also concerned that the debt of enterprises to the budget remains substantial — about 13 billion rubles.
“Receipts are growing from quarter to quarter”
Marat Safiullin, on the contrary, chose a major key for the announcement of the report. And for good reason: in January-September 2023, tax revenues increased by 21 billion rubles for all types of taxes — up to 313,2 billion rubles. The positive dynamics is due to that the state helps businesses in the conditions of logistics restructuring.
“The policy of strengthening the interaction between the state and businesses and expanding feedback allowed us to maintain the growth trajectory, which had a positive impact on the receipt of the consolidated budget of the republic," he said at the very beginning of the speech.
In support of his words, Safiullin cited the statistics of income tax receipts, which Rustam Minnikhanov was worried about. If 40 billion rubles were collected in the first quarter of 2023, then over 47 billion rubles were collected in the second quarter.
“Receipts are growing from quarter to quarter, which showed the ability of the republic's economy to adapt to external shocks," he reported.
In just three quarters of this year, income tax collected 133,2 billion rubles, which is by 0,9% less than the level of 2022. The chief tax officer of the republic explained the decline by “lower oil prices” than last year. But in other industries, there is a twofold increase in revenue, which means that income tax deductions are also observed.
Tatarstan Finance Minister Radik Gayzatullin revealed a more detailed picture of income tax payments. According to him, for the first time, large regional taxpayers were “sensitive” to stress in foreign markets, who did not receive 19,2 billion rubles according to this indicator. They reduced deductions to 69,7 billion (previously 88,9 billion). Only 12 large companies were able to withstand the sanctions and increased revenue. Among them — Nizhnekamskneftekhim, Grid Company, TD Kama seller of Kama tyres , Kazan Helicopters Plant.
The “hole” was closed by the rest, who overpaid by 18 billion rubles more. Other enterprises were able to increase deductions by 18% — up to 63,5 billion (previously 45,5 billion). As a result, the balance was not as critical as it could have been.
“It is necessary to conduct constant monitoring on income tax and analyse financial results together with manufacturers," Rustam Minnikhanov insisted at the end of the meeting.
The villain from the construction complex was credited with 156 million
Tax authorities monitor enterprises in the high-risk zone. In 2023, they revealed violations worth 3,9 billion rubles, transferring 82 materials to law enforcement agencies. Besides, 62 criminal cases were initiated in the amount of unpaid taxes for 4,2 billion rubles. Of these, 1,4 billion rubles were returned to the budget, the head of the Federal Tax Service for Tatarstan said.
He gave an example of tax evasion. An unnamed construction company that worked under state contracts created a scheme of 38 contractors. Besides, the workers worked using a gray scheme. The head of the Federal Tax Service for Tatarstan did not say what amount was cashed out. But the villain was credited with 156 million rubles. They were fully received by the budget, Marat Safiullin reported on the victory of the employees of his department.
Besides, the Federal Tax Service continues to exclude from the Register those who are suspected of providing an illegal VAT refund.
Moscow has allocated federal transfers
The distribution of the tax “pie” remains the same. Since the beginning of the year, taxes have been collected on the territory of Tatarstan for 812,4 billion rubles: 61% went to the federal budget, 39% — to the republican one.
But this year the republic will receive federal transfers worth 58,4 billion rubles, said Rustam Nuriakhmetov, the head of the Federal Treasury Department for Tatarstan. Plus, another 8,4 billion will be received by the end of the year. Among them — a limit of 15 billion on loans allocated for advanced financing of 48 facilities.
“The Commission for Regional Development has decided to provide loans for advanced financing for 15 billion," said Rustam Nuriakhmetov.
So far, 10,9 billion has been allocated for 39 facilities. Besides, a special treasury loan of 10,4 billion was provided for the construction of municipal infrastructure facilities and the purchase of transport.