The Ministry of Finance proposed a program to control the growth of public debt in the regions

The Ministry of Finance has formed a draft of a new program to protect regional budgets from the growth of debt load. Its key goal is to reduce the risks of excessive accumulation of liabilities associated with investments, follows from the presentation of the ministry (available from Vedomosti). The agency wants, firstly, to limit the growth of debt load, and secondly, to strengthen control over infrastructure projects that are implemented by attracting debts.

The Ministry of Finance has already been engaged in the systemic rehabilitation of regional finances. But last time the department was afraid of the growth of the obligations of the regions on commercial bank loans. Now the Ministry of Finance is primarily concerned about the increase in debt to the federal budget on investment treasury loans, as well as the quality of projects for which they are involved. In addition, the agency sees risks in the growth of off-balance sheet liabilities to businesses under concession agreements and PPPs, which, in fact, are quasi-government debt.