Rustem Khamitov: "Regions that replenish Russian budget system should have a fair allocation of resources"

UFA, 7 July 2016. /Bashinform News Agency, Alexander Smirnov/. On July 7, the Head of Bashkortostan Rustem Khamitov delivered a speech at the opening of the All-Russia seminar-meeting with heads of financial departments of the Russian Federation entities "Basic Approaches to Fiscal Policy and Intergovernmental Fiscal Relations in the Russian Federation for 2017-2019" held in Ufa Congress Hall.

The seminar was attended by heads of the Ministry of Finance of Russia, the Federal Treasury, the Federal Tax Service, the Ministry of Economic Development of Russia, the Ministry of Labour and Social Protection of Russia, as well as financial authorities of the Russian regions.

Rustem Khamitov stressed that the Russian Ministry of Finance each year included our republic in the list of the best regions in terms of financial management. In Bashkortostan principles of installment payment mechanism in construction of social facilities and public-private partnerships are actively implemented. A model of proactive budgeting with involvement of public and businesses funds to address issues of municipal utilities is applied.

Among the issues to be addressed at the federal level, Rustem Khamitov named the situation with tax refunds for large enterprises. So, in the past year from the state budget almost 4 billion rubles were refunded. In such conditions it is difficult to plan the budget process. In this regard, the Head of the Republic proposed to set a limit on a lump-sum withdrawal of funds.

The Head of the Region also noted the need to reduce the period of tax loss carryforwards by taxpayers from ten to four years, the return of early seized proceeds of mineral extraction tax on oil and giving the regional authorities the access to tax information of large enterprises to manage the local economy more effectively.

In order to improve the collection of non-tax revenues the Head of Bashkortostan offered to provide Multifunctional Centres with access to databases of Tax Services, State Traffic Safety Inspectorate, Bailiff Services to check the applicant's debt and the payment of outstanding arrears on the spot.

“Despite the fact that we are a reliable, significant, large region, we are on the 50-60th places in the Russian Federation on specific indicators of budget sufficiency per capita, on a number of social issues. Of course, it is unfair” Rustem Khamitov said. “The regions that work well, replenish the Russian budget system should in this case have equitable distribution of resources, including at the regional level.”