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Experts: only a third of the regions will retain reserves in 2020

Experts: only a third of the regions will retain reserves in 2020

Reducing the profits of enterprises, and hence tax revenues of budgets of all levels, will deprive reserves of 62 regions of Russia. The reason is the high debt burden of budgets, low oil prices and difficulties in world trade due to the coronavirus pandemic.

Analysts of the credit rating agency National Credit Ratings (NKR) have calculated that 62 regions will be without financial reserves in 2020, writes TASS.

According to the results of last year, only the Amur Region had a surplus budget - the region entered the top 10 in terms of profitability. The regional government increased revenues by 7%. On average, in the regions of Russia, budgetary reserves decreased by 6%. The reason is an increase in expenditure obligations against the background of a reduction in income tax and personal income tax.

Just three Far Eastern regions were in the top regions with the largest accounts payable. In the first place is the Magadan Region, which owed more than 3,5 billion rubles as of January 1, 2020. The growth compared to 2019 indicators amounted to 1064%. In fifth place, after Mordovia, Ingushetia and Khakassia - Khabarovsk Territory. As of January 1, the region's loan obligations increased by 53% and amounted to 371 million rubles. The Jewish Autonomy has relatively good results on this indicator - over the year it increased credit obligations by only 8% - up to 901 million rubles of debt.

According to experts, this trend will continue in the first quarter of 2020 and, most likely, its consequences will be felt in the next quarter. Regions will increasingly depend on subsidies from the federal budget. The Republic of Dagestan will receive the most funds for equalizing budgetary provision, the Republic of Yakutia in second place and the Kamchatka Territory in third.

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