The government has proposed to the subjects to direct the released funds to eliminate the consequences of the spread of coronavirus or to compensate for the lower tax and non-tax revenues
The government under the anti-crisis measures to support the regions decided to adjust the schedule of payments and budget loans. Until the end of the year all subjects will be fully exempted from repayment of the debt, the corresponding decree was signed by Prime Minister Mikhail Mishustin.
«2021–2024 [regions] will pay for 5% of the debt annually in 2025–2029 years — balance in equal installments with the possibility of early repayment”, — said the Minister.
In the Cabinet said that the released in 2020 means the regions will be able to direct on liquidation of consequences of the spread of coronavirus. In addition, they can be spent on compensation to reduce the tax and non-tax revenues that will ensure the sustainability of the regional budgets in the conditions of crisis situation.
Regions of Russia will be allowed to lend to each other
At the end of April, the Governor of the Murmansk region Andrey Chibis appealed to President Vladimir Putin asking for the introduction of exemptions during all regions of the country Treasury loans. According to the head of the region, it would allow to eliminate cash gaps that are formed in the regions because of the additional costs during a pandemic coronavirus.
“We see the risks of cash gaps in the budget and the risks of a shortfall in income with the additional costs we now incur. Already decided on Treasury loans. They are given from 90 to 180 days. But while there is a limit of 1/12 of the revenue budget. I would like the bar though would double the increase, this possible limit, and to give the opportunity to the end of the year them not to return. And it would have closed those cash gaps that we all have formed" — said the lapwing during the meeting to combat coronavirus in the region (quoted by TASS).
the Experts, the web has evaluated the impact of the virus on the Russian economy
Putin, responding to the proposal of the Governor of Murmansk, said that this issue will be separately discussed with the Cabinet. “with regard to the limits that we will discuss separately with the government, with the Ministry of Finance”, — Putin said.
The Treasury credit — this is a budget loan provided by the Federal Treasury for up to 90 days to cover cash gaps. It is a tool of liquidity management in case of seasonal fluctuations in expenditure and income taxes. One of the important advantages of this type of lending in addition to low interest rates is the absence of collateral, guarantees and other types of support.
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