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We planned a deficit, we have a surplus

Chairman of the Control and Accounts Chamber of the Primorsky Territory Dmitry Vinogradov - in an interview with EastRussia

We planned a deficit, we have a surplus
The recent audit report of the Primorye budget draft for 2017–2019, which was voiced by Dmitry Vinogradov, the chairman of the regional control and accounting chamber, caused contradictory responses in the region. Nevertheless, the publication of objective figures and indicators is likely to induce officials and deputies to consider the formally approved First reading the main financial document of the region more biased and thoughtful. Especially since it's not bad the dynamics of the revenue side of the budget makes it possible to construct the budgetary policy of the Primorsky Territory quite variably. 

- Dmitry Alexandrovich, what are the results of the year on budget execution? What is the dynamics in comparison with the previous period?
- 2016 year has not yet been completed. At present, the Control and Accounts Chamber has carried out an analysis of the implementation of the regional budget for 9 months. The dynamics is as follows: revenues increased compared to the same period of the previous year; Expenses, on the contrary, are executed below.

In numerical terms, in January-September, revenues increased by 1,9 billion rubles and amounted to 61,7 billion rubles, thereby ensuring the fulfillment of the annual plan by 75%. More than 80% (51 billion rubles) of the revenues are tax and non-tax revenues, and there is an increase of 6,7 billion rubles. Against this background, the volume of federal funds received, on the contrary, decreased by 4,9 billion rubles, and amounted to 10,7 billion rubles.

As for the expenditure side, for 9 months the budget was executed by 61,4%, in the amount of 56 billion rubles. Comparing the corresponding execution of the previous year, the budgetary allocations were executed lower by 2,4%. As a result, the region has a surplus of 5,7 billion rubles. In the same period in 2015, we also observed a surplus, but less - at the level of 3 billion rubles.

- Why did such a surplus arise? And what is it fraught with?
- The expenditure side of the budget is alarming: in the IV quarter, 38,6% of budget allocations must be spent. The uneven distribution of money is largely the result of low executive discipline in the implementation of some of the program measures in the development of education, health care, culture, transport, and road facilities.

Thus, the expenses for capital repair of the central city hospital in Dalnerechensk were planned (but not planned for 2016 year - 33 million rubles); For the construction of an outpatient clinic in the urban settlement of Svetloe Terneysky district (plan - 10 million rubles). During 9 months, subsidies from the regional budget were not sent to the budgets of municipal entities of Primorsky Krai for the purchase of school buses (the plan is 20 million rubles, 11 municipalities); On capital repairs of buildings of municipal educational institutions (the plan is 29 million rubles, 9 municipalities).

Low execution was noted for expenses for reconstruction of the regional oncological dispensary - 15,6 million rubles under the plan 233 million rubles (6,8%); At the overhaul of the Regional Children's Clinical Hospital №1 in Vladivostok - 1,6 million rubles under the plan 20 million rubles (8,1%).

- How does Primorye compare with other regions of the Far East? Do you have the appropriate numbers?
- At the time of the preparation of the opinion, the Chamber of Control and Accounts did not have information on the execution of budgets and draft budgets of other subjects of the Far Eastern Federal District. However, during the preparation of the conclusion on the budget performance report of the territorial compulsory health insurance fund of the Primorsky Territory for 2015, interesting data passed through us, which made it possible to draw conclusions about quite a good dynamic in this area. So, for the 2015 year in Primorye, there was a decrease in mortality from circulatory system diseases, maternal mortality (in 2,4 times), infant mortality. However, despite this, the indicator still remains above the average for the Russian Federation and the Far Eastern District. In addition, there is an increase in mortality from neoplasms (including malignant) and from tuberculosis.

- Have there been any traces «Corruption component "in this or that state spending this year?
- No, there were no such things detected by the Control and Accounting Chamber. However, in three checks, facts of misuse of budget funds were discovered.

One such violation was committed by the administration of the Primorsk Regional Philharmonic. The organization purchased sound equipment in excess of the amount of subsidies provided, and also acquired a creeping ad for the street that it was not eligible to purchase under subsidy rules. As a result, the volume of non-earmarked expenses identified by the Control and Accounts Chamber amounts to 216,84 thousand rubles.  

Inappropriate use of budget funds was also revealed in the framework of the activities of the Regional State Autonomous Institution "Center for Sports Training - School of Higher Sports Skill" (in the amount of 781,86 thousand rubles). A more significant volume of violations was recorded within the framework of spending funds allocated for the subprogram "Resettlement of citizens from emergency housing in the Primorsky Territory for 2013-2020" of the state program of the Primorsky Territory "Provision of affordable housing and high-quality housing and communal services for the population of the Primorsky Territory." Here, the facts of inappropriate use of the Fund and the regional budget for the total amount of 6146,34 thousand rubles for the Dalnegorsky, Dalnerechensky municipalities, Nadezhdinsky rural settlement of the Primorsky Territory were established.

- How does the KSP of Primorsky Krai assess the economic growth of the region? Are the new economic mechanisms that have appeared in the region - the territory of advanced development, the Free Port - already reflected in your reports? 
- In general, the situation in the economy of the region in 2014-2016 years is characterized by low rates of economic growth. The analysis of indicators of the forecast of social and economic development of Primorsky Krai indicates the existing deviations between the forecasted and actually achieved values ​​of macroeconomic indicators. Unfortunately, this shows a low degree of reliability of the available forecast. 

As for the territories of advanced development in the Primorsky Territory, so far the Chamber of Control and Accounts observes only the costs of their creation. For example, for 2015 and 2016, the budget of the Primorsky Territory provides funds for the creation of a water supply and sewerage system in the Nadezhdinskaya ASEZ and the Mikhailovsky ASEZ. Last year, KSUE "Primorsky Vodokanal" received a subsidy for design and survey work (38 million for both ASEZ). This year, the execution of the planned budget is significantly delayed: for 9 months for the ASEZ “Nadezhdinskaya” budget assignments in the amount of 8 million is only 5,4% of the planned volume (150 million rubles). And for the Mikhailovsky ASEZ, regional funding for water supply and sewerage was not even opened this year (with the existing plan of 33 million rubles).

In addition to the plumbing, the regional budget is also responsible for the development of planning for the linear objects of the engineering infrastructure of the TOR, and for the territory planning projects for the placement of the linear infrastructure of the TOR. These two positions also failed to achieve a clear and timely execution. In one of the cases, according to the town-planning department of the Primorsky Territory, the contractor LLC G-Dynamics, which poorly completed the planning project of linear objects, summed up the project, as a result of which the project was returned twice for revision.

- The Chamber of Control and Accounts opposed the provision of budget funds for the construction of hotels in Vladivostok in 2017. 
- It is true, the Chamber of Control and Accounts of the Primorsky Territory considers it inexpedient to further capital investments at the expense of the regional budget in the authorized capital of Our Home - Primorye JSC. The construction of these facilities is carried out in violation of the Urban Planning Code of the Russian Federation: consolidated estimate calculations and object estimates for multifunctional hotel complexes have not been developed, hence it is not possible to establish a real need for financial support for the design and construction of these facilities.

- The regional budget for 2017–2019 was adopted in the first reading. How viable is it?
- We consider the draft budget viable for the following reasons: First, it was drawn up taking into account the slowdown in economic processes. However, the bulk of expenditures is foreseen at the 2016 level. Secondly, compared to the level of 2016, in terms of own income (tax and non-tax income) for 2017, an increase of 1,0 billion rubles is presented. At the same time, it is necessary to understand that the regional budget is planned with a deficit for 2017 in the amount of 7,2 billion rubles, which means that not all expenses will be executed in full.
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