Nizhny Novgorod region discusses budgetary policy

A meeting of the Government of the Nizhny Novgorod region discussed the results of the first half of the year and prospects of regional fiscal policy.

The consolidated budget of the region for January-June of the current year has been executed on revenues in the amount of 65.6 billion rubles, which accounts for 43 percent of the annual plan. On expenditure, the budget was executed in the amount of 74.9 billion rubles. Tax revenues made up 42 billion 180 million rubles, which was 1.5 billion more than in the same period of 2013. However, the growth in tax revenues was lesser than was projected.

A number of companies of the Nizhny Novgorod region reduced profits or even suffered losses. However, the head of the region believes that large taxpayers of the automotive, petrochemical and metallurgical industries will be able to rectify the situation before the end of the year.

"Demand has been decreasing, because people have become more cautious in current difficult economic realities. They want to see how the situation will develop. For example, people do not want to buy new cars, they prefer to save money. Because of this, demand in the automobile industry dropped by 20%. But even in these difficult conditions, revenues exceeded the level of the first half of 2013, - said Valery Shantsev. - In line with Strategy 2020, one should constantly direct budgetary funds for the development of the region. Therefore, I instructed all ministries to consider, where one can save money without compromising the standard of living of the population - to have a resource for the development of the region."