Billions in debt and a New Year without gifts: how regional budgets are bursting at the seams
Regional budgets are cutting spending and taking out loans. Krasnodar Krai is cutting healthcare and housing and utilities, Kuzbass and Sverdlovsk Oblasts are borrowing billions of rubles, and Prokhorovka has refused to pay for New Year's gifts for kindergarteners.
Regional budgets: loans and cuts
Krasnodar next year cuts Spending across virtually all areas has declined: healthcare is down 10%, housing and utilities are down 24%, environmental protection is down 12%, and education is down 4%. Budgets for state programs to create a modern urban environment and comprehensive rural development are being cut almost in half, while support for local industry is being cut tenfold.
Kuzbass, where the budget deficit exceeded 26 billion rubles, forced to take loans for 10,5 billion ₽ (and pay 1,7 billion ₽ in interest).
В Sverdlovsk region will take loans for 20 billion ₽ (with a budget deficit of 32 billion ₽ for this year and 46 billion ₽ for next year).
Municipalities are saving on New Year's gifts
The budget deficit is also felt at the municipal level. In the Belgorod village Prokhorovka, for example, the authorities refused to pay New Year's gifts for kindergarten children: according to the local mayor, "given limited funds, a decision was made to purchase gifts only for children in the privileged category." Previously, expenses on New Year's gifts for children reduced в Samara region.
On how regions are cutting social spending due to budget problems, Read in the text of our economic observer Tatyana Rybakova.