Rus News Journal

Budgetary process in regions

the Siberian management has preferred a planned economy to taxes

Regional industrial elite sometimes so are disappointed in budgetary system that at all do not ask the financial help from the centre - they assign all hopes to reduction of taxes and even planned economy revival in region scales. As a vivid example of such moods the session which has come to the end in Novosibirsk of working group of the Siberian branch of the International association of heads of the enterprises (CO MARP), offered new directions budgetary - an area tax policy for 1996 serves.

WITH MARP unites the enterprises of 72 cities of Siberia. Into its structure enter 400 enterprises and 16 branch and regional associations. In work of the Siberian branch participates more than thousand directors.

session of working group WITH MARP differed directly - taki apocalyptic moods. According to participants of meeting, the manufacture condition is in Siberia outside of economic safety of region . The management has assigned responsibility for a difficult situation of the enterprises to the state which only in 1995 has run into debt to enterprises VPK from above 50 mlrd roubles and to heavy taxes has limited solvent demand of the population . As the factory manager " has complained; the Chemical layer Edward Vasilev, its enterprise works now all on 15 % of the capacity. All directors complained about working hours losses in connection with manufacture stops: in 1995 these losses have exceeded 3 million cheloveko - days. Under the certificate of participants of meeting, the enterprise have been compelled to refuse modernisation and purchase of the new equipment, depreciation charges are used for replenishment of circulating assets and on operational expenditure. Under the established criterion of bankruptcy, by data on the beginning of this year, falls not less than 80 % prompredprijaty areas.
the disappointment in the state industrial policy was so strong that present have declared that any more do not demand from the state of additional financial injections and recutting of the budget and rest hopes only upon own forces. Immediately after this they have demanded in 1996 to reduce the taxation to 20 %, to cancel all privileges to the concrete enterprises and to create equal conditions for all (the total sum delayed under the permission of Novosibirsk administration of payments in the budget in 1995 has exceeded 138 mlrd roubles), to restore reservation of 30 % of means of the enterprises on salary payment.
besides, directors have offered, making use of experience of the Moscow, Nizhniy Novgorod and Sverdlovsk areas to create favorable conditions for local commodity producers. For this purpose, in their opinion, it is necessary a little. For example, to provide placing at the enterprises of area of the territorial order for manufacture of local production. Or to expand practice of offsets of debts of the enterprises by commodity deliveries.
Certainly, the considerable part of offers of working group concerns regional financially - bank system. From these offers follows that not especially counting on the budgetary help, the Siberian enterprises do not refuse the cheap centralised credits at all - directors with great feeling insisted on fall by the Central Bank of the rate of refinancing that will help to lower an overall price level and to raise a turn of funds . Besides, they have demanded also granting to the authorised banks of the Novosibirsk region of the right of delivery of guarantee certificates to the enterprises for attraction of investments.
the Chief executive WITH MARP Yury Bernadsky has expressed confidence that the offers which have been put forward at meeting, most likely will get support of the Novosibirsk authorities and even become a basis for the regional economic program which the regional administration was going to develop for a long time. Already special session of administration of the Novosibirsk region which, according to Bernadsky, will consider possibility of coordination of activity of managing subjects on territories of area and even idea " in the near future will take place; reconstructions of a planned economy of region . The management of the Novosibirsk enterprises now obviously supports this idea.