The budget of the Vitebsk region for 2021 maintained its social focus

The implementation of the development plans for the Vitebsk region requires the mobilisation, first and foremost, of managerial and intellectual resources. This was discussed at a session of the Regional Council of Deputies when summing up the results of 2020 and approving the budget for 2021.

The final year of the five-year plan was marked by the coronavirus pandemic, which negatively affected the dynamics of economic activity. Therefore, the management of the Vitebsk region had to focus on the ability to quickly analyse the situation and make prompt decisions. As a result, the economy performed effectively, and the stable socio-political situation allows for growth plans for citizens' well-being over the next five years through income, price stability, housing, and employment.

— In the upcoming five-year period, everyone needs to commit to effective work. This is the only way to achieve results, to make the Vitebsk region a respected region in the country, a comfortable place to live for people, and a place where our children connect their future, — emphasised the Chairman of the Regional Executive Committee, Nikolai Sherstnev, before analysing the year and the five-year plan as a whole, as well as setting future tasks.

The results of the Vitebsk region's work in 2020, a challenging year for the economy overall, indicate that the goals for the next five years are achievable and that there is potential for their attainment. Problems with the supply of imported raw materials for processing negatively affected industrial production volumes, exports, and freight transport. Since March, demand for tourism, health resort, cultural, and entertainment services has sharply declined, with public catering and retail trade also suffering. Despite the difficulties, it was generally possible to avoid an economic downturn. Most development indicators show positive dynamics, and, for example, in terms of real wage growth rate (108% over 10 months), the Vitebsk region leads among the regions. Over 11 months, agricultural organisations increased production by 5.7%, construction and installation work volumes increased by 9.4%, and even industry (excluding oil refining and energy) grew by 0.4%. Profitable and efficient operation has been ensured in the main sectors.

— Of course, there is no significant growth this year, but it is important that we have not declined, have managed to hold our ground, and even increased. This speaks to the potential of the management staff. Now, on the created foundation, we need to take a step forward to ensure higher living standards for the population. And here the recipe is simple: to live better, one must work better, — said Nikolai Sherstnev.

Moreover, crises bring not only bad things into life. They temper, allow us to see shortcomings and mistakes, and help to correctly set priorities for the future.

UNLOCKING THE POTENTIAL OF INDUSTRIES

The main drivers for the growth of the industrial complex for the period up to 2025 will be based on the maximum realisation of the potential of industries, primarily through the in-depth processing of local raw materials. In particular, there is a significant reserve in woodworking in this aspect, both in existing enterprises and thanks to newcomers to the industry, including residents of FEZ "Vitebsk" (VMG WoodArt LLC and Akitamа LLC). The modernisation of food industry organisations will continue, and raw material zones will need to be developed to utilise their capacities. The performance of the light industry will be ensured by modernised production facilities at Vitebsk Fur Factory and Orsha Linen Mill, as well as the implementation of robotic complexes at Belvest. In mechanical engineering, metallurgy, and the pharmaceutical industry, the main role is assigned to private organisations (Svyatovit, Vitebskiye Podemniki, Amkodor-KEZ, Miory Metal Rolling Plant, Novopolotsk Technological Metal Structures Plant, Rubikon, Vik – Animal Health, Belkarolin).

Agriculture is becoming a dynamically developing industry. This is mainly due to a fundamentally new integrated approach to its organisation, laid down in Decree No. 70. This has significantly stabilised the economy of agricultural organisations, in particular, improved solvency, reduced losses, and decreased debt obligations. Only for the development of raw material zones, 37 million rubles were allocated in 10 months of 2020. The 7 agro-industrial associations created, which, as Nikolai Sherstnev clarified, include weaker farms, account for more than half of the region's agricultural production. In 2021, the regional executive committee will analyse the effectiveness of the agro-industrial complex based on the Decree, and a year later, together with the government, will submit proposals on the feasibility of its further implementation or the adjustment of individual provisions.

Foreign economic activity remains a top priority. By the end of the five-year period, the export growth rate will reach 123%. The coronavirus pandemic significantly impacted its dynamics: in 2020, the suspension of foreign trade centres' operations led to a reduction in the supply of most consumer goods to foreign markets. In the future, local manufacturers will need to more actively leverage e-commerce potential for promoting and selling products in foreign markets, as well as for developing their own businesses, including high-tech processing of local raw materials. The task of increasing investment is still relevant. A total of at least 17 billion rubles is planned to be invested over the five-year period, including 3 billion in 2021.

— In addition to creating new jobs, the main goal of investment is to increase labour productivity and create a competitive value-added product at the level of European standards. This is where our income and wages come from, — emphasised Nikolai Sherstnev.

These resources are intended to expand the capacity of the tinplate plant and continue developing infrastructure in Miory. Among other significant projects to be implemented are those in woodworking and pharmaceuticals, the construction of two additional pig breeding complexes, and a fish farming complex with the participation of an Israeli investor.

SOCIAL GUIDELINES

Over the five-year period, the housing provision level increased from 26.6 to 28.4 sq. m (nationwide – 27.8 sq. m). A total of over 1.5 million sq. m of housing was commissioned during this period, with the target for the next five years being around 1.84 million sq. m. The focus will be on multi-storey industrial construction, and residential buildings are planned to include integrated and attached premises for social and public purposes.

Among the constant priorities are land management and the improvement of settlements. Within the framework of the regional program developed until 2025, work was carried out in Vidzy and Obol this year. Plans for next year include the improvement of Osvia and Surazh, as well as facilities in the Shumilino district for "Dazhynki-2021".

In 2021, it is planned to provide at least 98.4% of consumers with drinking quality water (in 2020 – 96%, in 2015 – 84%), continue work on replacing heating and water supply networks, increasing the volume of housing capital repairs, and improving the utilisation of solid household waste.

Overall, efforts to achieve higher living standards will rely on self-sufficiency amidst financial prudence, maximizing the utilization of available reserves.

— We must move forward in all sectors, primarily through optimization: save money and reinvest the freed-up resources into development. This will yield results by reducing costs and enhancing competitiveness, — specified Nikolay Sherstnev. As an example, he cited the region's education system, which has been developing in recent years mainly through resource redistribution, including the optimization of the network of institutions.

BUDGET FOR ECONOMIC GROWTH

The revenues of the consolidated budget of the Vitebsk region for 2021 are set at 2 billion 550 million rubles, a 5% increase compared to 2020.

— Budget revenue directly depends on economic growth, and in the absence of positive dynamics, strict budget limitations may be applied, — noted Gennady Grebnev, Head of the Main Financial Department of the Regional Executive Committee.

The core of the local budget's own revenue base consists of income tax, VAT, property and profit taxes, which collectively account for 85%. These constitute 63% of the total revenue, with the remaining 37% being non-reimbursable transfers from the republican budget (951 million rubles). To improve payment discipline, requirements for timely settlement with the treasury have been strengthened: organizations, including budgetary and equivalent ones, will not be able to increase tariff rates and salaries if they have outstanding budget debts.

Over 1.7 billion rubles will be allocated to finance the social sphere. The share of social expenditures in the total budget will increase to approximately 70%. The most budget-intensive sectors will remain education (its share in budget expenditures will exceed 31%), healthcare (almost 27%), social policy (about 7%), physical culture, sports, culture, and media (about 5%).

Priority expenditure areas include the timely fulfillment of debt obligations, continued efforts to increase wages in the public sector and align them with salaries in the real sector, and the accelerated growth of wages for low-income citizens. An increase in funds is foreseen for providing housing assistance to the population.

In 2020, the implementation of the decree on reimbursement of expenses for the conversion of housing to electric heating (20% of costs, but not more than 40 base units) was initiated. It has already been used by 10 homeowners, with an average additional payment of 494 rubles. The volume of subsidies planned for 2021 is designed for another 5,000 citizens.

For the development and maintenance of local roads in 2021, under the State Program "Roads of Belarus for 2021-2025", it is planned to allocate 60 million rubles, which is 60% more than the actual funding in the current year.

The investment capabilities of local budgets are limited, therefore, the regional and district investment programs will include facilities in the most relevant areas. In total, 141 million rubles are planned to be allocated for capital construction using