The volume of subsidies in the budget of Chechnya by 2023 has decreased to 40% – Kommersant

The volume of federal subsidies to the budget of Chechnya has been reduced from 64% to 40% since 2014, said the chairman of the regional government, Muslim Khuchiev. He noted that Chechnya’s budget remains deficit, but the region sees an annual increase in investment in fixed assets.

“Yes, indeed there is a deficit in the budget of the Chechen Republic. It is due to the fact that our economic base was completely destroyed due to military operations. If we compare this year with 2014, the level of subsidies in the Chechen Republic decreased by 24%: it was 64%, now it is 40%,” said Mr. Khuchiev TASS within the framework of the International Exhibition-Fair “Russia”.

Muslim Khuchiev also connected the presence of the deficit with demographic growth in the region. “Of course, these are new consumers of government services, and new social facilities need to be built for this. If we take it in annual terms, the introduced social facilities increase the cost of maintenance and wages somewhere in the region of 3.5 billion rubles,” he explained.

The Chairman of the Chechen government noted that the region annually experiences an increase in investment in fixed assets. In 2022, this figure was at the level of 120 billion rubles, and in 2023 it is expected to be 135 billion rubles, and in 2024 – at least 145 billion rubles. “A model of economic development was developed. We have identified five breakthrough projects in construction, industry, tourism, and climate change for a total amount of about 136 billion rubles. We are counting, first of all, on creating 5.5 thousand jobs,” said Muslim Khuchiev.

Chechnya, Dagestan, Ingushetia and Tuva account for 20%, or 164 billion rubles. of the total volume of federal subsidies of 822 billion rubles. In 2024, this share will increase to 22.4%, or RUB 134.8 billion. (Chechnya – 34.7 billion rubles, Dagestan – 69.2 billion, Ingushetia – 11.6 billion, Chechnya – 34.7 billion rubles, Tuva – 19.3 billion rubles) of the approved volume of subsidies for 67 regions.

At the end of November, the Ministry of Finance proposed to place direct responsibility for the budget deficit on the heads of Chechnya, Ingushetia, Dagestan, Tuva, as well as the Donetsk and Lugansk people’s republics, Kherson and Zaporozhye regions. For failure to fulfill obligations to reduce the gap between regional incomes and expenses, the authorities may deprive subjects of subsidies.

Read more in the Kommersant article. “Donations against signature”.