Bashkiria approves main directions of debt policy for 2025-2027

Bashkiria has approved the main directions of the republic's debt policy for 2025 and the planning period of 2026 and 2027. The corresponding government decree, signed by the Prime Minister of the Government of the Republic of Bashkortostan Andrey Nazarov, was published on the official legal information portal.

According to the document, the state debt at the end of 2023 amounted to 58.8 billion rubles, an increase of 20.4 billion rubles, or 1.5 times, compared to the 2022 level. 17.6 billion rubles of borrowed funds were attracted (excluding short-term loans to replenish the balance of funds in the single budget account, which was 17.5 billion rubles).

In addition, under the state guarantee of the Republic of Bashkortostan, which amounts to 7.4 billion rubles in debt as of January 1, 2024, JSC "Republican Communal Company" is implementing a project to construct water supply and sanitation facilities in the territory of "Zabelye" (stage II) in Ufa using bonds of a specialized project financing company.

In 2023, 4.6 billion rubles were allocated to repay debt obligations (excluding the repayment of short-term loans to replenish the balance of funds in a single budget account for 17.5 billion rubles). The debt burden increased from 21.2% to 29.2%.

In the structure of public debt, the market component decreased from 46.0% to 32.3%, and the share of budget loans changed insignificantly, from 53.9% to 55.2%. At the same time, the share of contingent liabilities (guarantees) increased to 12.5%. Despite the 1.6-fold increase in interest expenses, their share in the total volume of the Republic of Bashkortostan budget expenditures (excluding expenses carried out at the expense of subventions provided by the budgets of the budget system of the Russian Federation) amounted to 0.6%.

Obligations to service the public debt were fulfilled on time and in full, as documented in the notes.

Author: Leila Aralbaeva