I.Metshin: “In terms of budget execution, last year was completely unique”

Ilsur Metshin, the Mayor of Kazan, called last year unique from in terms of budget execution today at the Business Monday at the Executive Committee of Kazan. The head of the Finance Department, Irek Mukhametshin, reported on the implementation of the budget.

The budget of Kazan for 2020 was formed without taking into account the impact of crisis situations

I.Mukhametshin noted that the budget of Kazan for 2020 was formed based on the forecast of stable economic development.

The approved amount of the city's budget for 2020 in terms of income and expenses is 24 billion 964 million rubles. The growth compared to the approved plan for 2019 was 8.4%.

“Already at the end of the first quarter, the spread of the coronavirus began to affect budget performance”, - the speaker noted.

Since March 30, 2020, a self-isolation regime has been imposed in Russia. This immediately affected the income, said I. Mukhametshin. Only in April and May, revenues dropped by almost a third.

Optimization allowed to reduce budget expenditures by 1 billion 369 million rubles

The decline has also affected a non-tax income.

Taking into account the low income, in April, the priority task was to provide sources of financing for priority socially significant expenditures. In order to prevent the formation of cash gaps and balance the budget, the Executive Committee has developed an optimization plan for expense reduction by 1 billion 369 million rubles.

In the fourth quarter of 2020, the budget of Kazan was executed with an increase of 20%

In the third quarter, due to the termination of the self-isolation regime, the situation with the receipt of income began to align, said Irek Mukhametshin. At that time, the revenue was already at the level of 2019.

“However, according to the cumulative results of 9 months, the shortfall by 2019 was still significant and amounted to 808 million rubles, - the speaker noted. – Compared to 2019, the budget of Kazan in the fourth quarter of 2020 was executed with an increase of 20%. At the same time, the main over-fulfillment in the amount of 445.8 million rubles was reached only in December".

In general, end-of-year budget execution by revenue amounted to 29 billion 51 million rubles, the plan was exceeded by 4 billion 87 million rubles.

The city’s budget execution for 2020 amounted to 28 billion 165.7 million rubles, which is 3 billion 202 million rubles more than the approved plan. “We managed to fulfill all the priority and socially significant expenditure obligations”, - the speaker concluded.

“In terms of budget execution, last year was completely unique. The start was tough – the shortfall in lost revenue was 2.5 billion rubles. Therefore, we carried out optimization, which gave its results. The republican budget supported us– transfers for 3 billion rubles were allocated to the city additionally. Besides, by the end of the year, we still reached a plus in tax revenues and were able to fulfill all our social obligations”, -Ilsur Metshin said.