Debt on budget loans canceled by the Russian Ministry of Finance
Chelyabinsk Region Seeks Support for Regional Budgets and Social Measures
In a meeting held in July, Chelyabinsk region Governor Alexei Teksler proposed a series of measures to support regional budgets and address pressing issues. The meeting, focused on discussing support measures for regional budgets, was reportedly a part of the State Council Commission on the "Economy and Finance" direction.
Prime Minister Mikhail Mishustin had previously signed a decree allowing several regions to write off up to two-thirds of their budget debt. As a result, the Chelyabinsk region, among others, had 454 million rubles written off from its debt. The total amount of debt written off is over 58 billion rubles, as reported on the Ministry of Finance's website.
The remaining funds from the written-off debt are to be used to address regional issues. Teksler proposed considering investment tax credit as a support measure, and called for an analysis of budgetary expenses related to federal deductions.
In addition to financial support, Teksler proposed regional measures aimed at addressing social challenges. These measures include assistance for participants in the special military operation, focusing on psychological and medical rehabilitation and employment, tailored to the severity of their wounds. The region also emphasizes support in healthcare, education aimed at increasing the birth rate, sports events, and renovation of schools. These measures are part of broader efforts connected to national projects and demographic policies.
The approved sectors for which funds were allocated include housing relocation, investment, and national projects. Other approved sectors for which funds were allocated are works in the housing and utilities sector, public transport renewal, and various others. The clarification was made by the Ministry of Finance press service, stating that the write-off amount corresponds to the volume of funds allocated for approved sectors.
The debt write-off occurred in 2024, and the Chelyabinsk region is one of the 28 regions that had its debt written off. Teksler also suggested other measures for supporting regional budgets, although further details were not provided. The meeting took place in July, and Teksler briefed the President about these specific regional measures in response to new challenges, including the social and demographic issues.
Other federal-level support measures include co-financing from the federal budget for family and demographic projects, focusing on large families and increasing the birth rate, although those are broader national initiatives.
I'm not sure if the proposed investment tax credit will be enough to significantly address the financial needs of the Chelyabinsk region, given the large debt write-off and the numerous social measures needed. Despite the debt write-off, the region still faces challenges in areas like healthcare, education, and employment.
