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The Krasnodar Region



An anti-recessionary task force headquarters session was carried out in the regional administration

To survive and to overcome the crisis – such a task was set by the governor of Kuban Alexander Tkatchev at enlarged anti-recessionary task force headquarters session, which was carried out in the administration of the region. 

The paradox of the crisis sweeping today the whole world is that states with underdeveloped economies suffered from it least of all. It is talked of those states that make their first steps, haven’t powerful inflow of outward investments and where dollar rate determines not by a market and demand for currency, but by a single person. They are those countries who had not felt global shocks.

- But this doesn’t mean that our course chosen 15-20 years ago is incorrect, - noticed the governor in his introductory word. – Crises come and go.

Alexander Tkatchev compared crisis phenomena with a filter. Strong units will come through it and get stronger, weak units will fall out. As a result already over the year the picture will be quite another. And the grounds for such optimism are obvious.

For the past few years Kuban had piled up such safety factor, which can not only just hold the economy, but can show the dynamics of development. Besides Russian government took a number of effective crises’ deterrent measures such as a support of real sector of economy and a holding the dollar rate in the determined bounds. Such a "political certainty" is a strong stabilizing factor for business.

A crucial question discussed at the task force headquarters session is the mobilization of all incomes in the budget of the region. According to the governor the results of 2008 are impressive. Kuban treasury had grown heavy till 140 billion rubles including own income at the record level 110.2 billion rubles. An increase as compared with 2007 made up 20 billion.

During the year income growth rates was remaining at the level 130%. Hardship relating to the crisis appeared only in the end of autumn. As the result growth rates made up 122.3% for the year as compared with 2007.

- The most vulnerable become the regional budget, - stressed Alexander Tkatchev. – And despite of the volume of tax and non-tax yields had increased by 13 billion rubles, we didn’t count up at least 2.5 billion rubles. Budgets of some municipalities also felt the decrease of the level of incomes. But I should stress that ground-plan upon the regional budget is fulfilled!

The coming year will be especially hard in the budget plan. First of all, the situation in the real sector of the economy changes every day, at that not in the better side. Secondly, decrease of tax burden to the economy results in a cut of income to regional budget upon two main sources – profit tax and individual income tax.

In this connection grave responsibility and heavy workload weigh on fiscal bodies of the region because it is the taxes that bring 85% of incomes of our budget. The governor applied to the heads of tax administration and law machinery with appeal to do their best to mobilize tax income in all levels of the budget!

- The main thing is to organize payments promptly and in corpora. We have to leather away at the job, using all possible and… impossible key factors! We must solve this essential problem with 100% effectiveness without any formalism, without jungle of redtape , - tasked the head of the region.

As specially stressed in his speech a chairman of the general court of Kuban Vladimir Beketov, - Budget Act is binding for all.

Alexander Tkatchev paid attention that not all taxes transferred by enterprises to the budget are directly relating to their activity. There are a number of payments which volumes don’t depend on the profit. For example, land tax and rental fee, corporate property tax and transport tax.

- I see here no grounds for decrease of their inflow in the budget, - mentioned the governor. - Moreover, each kind has its own provision, including essential outstanding amount of last years. I ask revenue authorities and law machinery to use all implements and authorities not only to admit debts’ increase, but on the contrary to reduce it every day!

The key task is to work closely with every taxpayer and to monitor constantly fiscally and socially significant enterprises. This work should be taken under individual control by the heads of municipalities, because they are more close to the population and like no other are interested in the final result. Applying to them, Alexander Tkatchev required coordinating on-site of the work of all services engaged to the budget process.

The governor voiced the task: - In 2009 it’s necessary to provide an inflow of incomes to the budget at the level no less than last year volume that is 110 billion rubles, and in some territories and branches of the economy this figure should be even increased!

As the vice-governor Ivan Peronko believes this task is quite feasible. To the end of last year a successful experience of operation under "new recessionary conditions" has been already accumulated. Daily monitoring of large taxpayers was carried out. As a result, even last two months it was practically managed to maintain the level. As a result an increase of gross regional product for the year made up 9.3% (it’s by three percentage points higher than on the average by Russia). And under the volume of its own incomes the region went up to 9 places and had passed ahead many regions with higher economic potential.

Speaking about January, the situation is also far from the clutch. Ivan Peronko had showed an assurance that under results of the first month of the year the budget will collect no less than last year.

- I stress: hundreds of thousands of Kuban families and quality of their life stand for the budget’s figures. They help us to fulfill our social obligations upon quality treatment, maintenance of schools and kindergartens, social security system. We must fulfill these tasks regardless of economic grievances. Not only social, economic and political stability as a whole, but welfare of each of us, of each Kuban citizen depend on it, - told the governor.

The first vice-governor Jambulat Hautov told at the headquarters session about economic situation and tasks of execution of renewed plan of anti-recessionary measures:

- On the eve of the session we carried out a number of working conferences, lay out the specifics of our anti-recessionary plan and supplemented it with new clauses. Today we present a concrete plan of actions not only for regional structures, but for each municipality. It must be realized in all municipalities and in each subject of economy, at the labor and financial markets already in the first half-year.

Special attention is given to the development of those branches, in which the region has the largest competitive advantages such as agricultural sector, including personal subsidiary plots and resorts, building (with a glance of mortgage) and small business. Till the end of March the regional administration will conclude agreements with all banks about crediting of strategic enterprises in the branches of regional economy. Till the end of the first quarter agreements about the price freeze to the period of sowing and harvest will be sign at the regional level with wholesalers, realizing fuels and lubricants.

The first vice-governor stressed that providing of stable budget filling may be only at the expense of economic and investment development of the region.

- First of all, we must complete the building of those manufacturing and trade entities, which will provide to the region new tax proceeds and working places already this year, - noticed Jambulat Hautov. - 25 large projects with total sum of 33.8 billion rubles must be realized at Kuban in 2009. They got the status of priority projects and the title to first-priority support of regional authority. These projects’ realization will provide us additionally about 3.5 thousand working places.

The first deputy of the regional head sure that correct work in each city, district and at each enterprise will allow to pass from anti-recessionary measures to stable development of Kuban economy.

Despite of the economic successes of last year, stressed Jambulat Hautov, a number of negative developments were noticed in the region. They are a decrease of the volume of oil extraction, foodstuffs production, transport vehicles and equipment, a reduction of carpentry. According to the first vice-governor the reason of these developments is not near the crisis, but in low-quality, inefficient management of enterprises.

The theme of speculation on the crisis took the special attention at the session. In the guise of global world shocks many enterprises became to cut the production, to decrease salaries of their employees and as a result to bring down inflows in the budgets of all levels.

The governor and all speakers named such a situation as inadmissible, and those who artificially create it – not patriots and traitor of native land interests. Alexander Tkatchev required from heads of tax inspectorates and law machinery to bring such apology for a director to light.

Department of Investments and Project Support of the Krasnodar Region