Budget investment loans pass efficiency tests

When extending the program of infrastructure budget loans (IBC), the government is preparing to further adjust the mechanism based on an analysis of the operation of this instrument – in particular, it is planned to update approaches to the selection of projects due to claims about the quality of their planning. There are also risks of failure to achieve target indicators – in particular, due to frequent adjustments to projects, which can ultimately lead to the redistribution of funds. It is planned to tie the write-off of other budget loans to the effectiveness of investments in infrastructure – the Ministry of Finance proposes to allocate the released funds equally to the modernization of housing and communal services and investment projects.

Yesterday, at a round table in the Federation Council, departments summed up the interim results of the regions investing IBC funds. Let us remind you that we are talking about budget loans that are issued to regions for 15 years at an annual rate of 3%; 1 trillion rubles have been allocated for 2021–2025. such loans. As part of his message to the Federal Assembly, the President instructed to extend the program and redirect the funds returned by the regions to issue IBC, and increase the portfolio by 250 billion rubles from 2025. in year. According to First Deputy Head of the Ministry of Finance Leonid Gornin, 325 IBCs have been approved for 2022–2025, and so far more than 500 billion rubles have been delivered to the regions. However, although the use of these funds by the regions has improved, it still raises criticism. Thus, Mr. Gornin noted, as of March 1, advances amounted to about 26% (that is, 74% of the funds were “closed” by acts of completion), and “everything would be fine if there were no advances that have been stretching since 2022 – this is practically 62 billion rubles.” According to him, this is a risk indicator indicating that the target indicators of investment projects may not be achieved.

Among the declared results of the program is the creation of almost 500 thousand jobs by 2040, the commissioning of 120 million square meters. m of housing, 10.6 trillion rubles. investments and 2.3 trillion rubles. tax and non-tax revenues. According to the Territorial Development Fund, plans for 2022–2023 have been exceeded: 16.6 million square meters have been commissioned. m of housing (120% of the plan), 98.4 thousand jobs were created (128%) and 1.7 trillion rubles were raised. investments (119%). However, added Sergei Litvyakov, deputy head of the department of regional development of the Ministry of Economy, depending on the region, the picture is significantly different: 29 constituent entities of the Russian Federation did not fulfill the plan for investments, 23 – for jobs. If the targets are not met, Leonid Gornin warned, the Ministry of Finance will propose to reduce the amount of support and redistribute the limits in favor of more efficient regions. Against this background, the federal center is concerned about the quality of project planning. According to the first deputy head of the Ministry of Construction, Alexander Lomakin, in 2022–2023, “a lot of time was spent” on “transfers” and “shifts” of funds. As Sergei Litvyakov added, 77 regions changed their applications, and in 2023 there were 300 project adjustments, which also shifts the deadlines and increases the risk of non-fulfillment of plans. This year, according to the Ministry of Construction, so far, out of the 175 billion rubles provided for IBC. 1.4 billion rubles were added, that is, less than 1%. Taking into account the extension of the IBC program, the Ministry of Construction intends to update approaches to the selection and analysis of projects.

The efficiency of investments should also become a condition for writing off other budget loans – we recall that the president instructed the regions to write off two-thirds of such debts. The Ministry of Finance has worked out the main parameters of the new “forgiveness” of regional debts; they are being discussed at the government site. Thus, Leonid Gornin said, the released funds (about 1 trillion rubles for 2025–2028) should be allocated equally to utility infrastructure and to new investment projects and their support, including compensation for part of business investments as part of the investment tax deduction. In the absence of new investment projects, the possibility of directing funds to resettle dilapidated housing is being discussed. In case of inappropriate use or failure to achieve goals, the money will have to be returned – in equal shares in 2030–2039. The Ministry of Finance allows debt cancellation before 2030 – from 2026, if there are already economic effects from the implementation of projects financed from the freed up funds.

Evgenia Kryuchkova