Rus News Journal

Economic policy of regions

the Leningrad regional authorities have complained of crisis

the Government of Leningrad region has considered results of development of local economy in the first months 1994 as the extremely unfavourable. On it has informed yesterday on a press - conferences the regional Minister of Economics Galina Oksjutik. That though as - that to help the enterprises of region, the authorities intend to enter for them preferential system of the taxation. The area Legislative Assembly will consider the project of tax privileges this Friday.

the crisis Reason in regional economy, according to local authorities, is rather trivial - a lack of budgetary funds. As has noted g - zha Oksjutik, for four months of this year the area budget has received only half of planned incomes and consequently not in a condition to support to the industrial and agricultural enterprises. Have not crowned yet success and attempts of the regional authorities to help the enterprises in overcoming of crisis of non-payments. Considering that on 80 % non-payments have arisen from - that to the enterprises of Leningrad region buyers from other regions do not pay for put production, the government has dispatched them requests for debts repayment.
but even the government not too believes that similar requests will be apprehended seriously. Complicates a situation and another: governor of the region Alexander Beljakov while obviously lags behind the mayor of Petersburg Anatoly Sobchaka in ability to influence the federal authorities. In particular, Beljakovu while and did not manage to achieve from Victor Tchernomyrdin the decision of financial problems of the Leningrad atomic power station which workers picket residence of the regional governor, complaining that do not get wages three months.
the only thing that can really make the regional government for the enterprises, it to soften a tax mode a little. The authorities, by words g - zhi Oksjutik, have developed the preferential scheme of the taxation of the new enterprises, providing reduction of the VAT, the ground and property tax, clearing of the profit tax in first three years. However, government offers still should be considered to regional Legislative Assembly. Further the government rests hopes of the western help - as has declared Oksjutik, the European Reconstruction and Development Bank is going to allocate with $30 million for creation in area (by an example of Ekaterinburg and Smolensk) venture fund for support of small and average business. Besides, 20 investment projects are now considered by English experts, and is not excluded that any of them the European Reconstruction and Development Bank finally will be accepted.
it is remarkable that the economic crisis and weakness of the regional authorities in lobbyism compel Alexander Beljakova to rapprochement with Sobchakom. Recently they have left former disagreements concerning property section between a city and area and even have held recently joint meeting on which have discussed questions of supply of a city the foodstuffs, health services of Petersburgers - summer residents, low building in suburbs. It is remarkable that Anatoly Sobchak has shown considerable interest to problems of area and has suggested to create uniform tax inspection and police.

ANDREY - SINITSYN