The Finance Ministry has proposed to redistribute income from rich regions to the poor


The money from the rich regions should redistribute to the poor. This was stated by Finance Minister Anton Siluanov said at the Moscow Finance forum, reports .

According to Siluanov, the Finance Ministry sees the need to help actors. “Where to take money? I decided Sergei Semenovich (Sobyanin, mayor of Moscow ) ask for one percent. We analysed the consolidated budgets of the constituent entities of the Russian Federation, and there is a proposal to reallocate part of the resources from the rich to the poor, who are more in need,” — said Siluanov.

Offer may not be very good for large cities, particularly Moscow and St. Petersburg, he added. The Finance Minister said that subsidies should be granted under certain conditions, in particular under the obligations on escalating of tax potential, investment activity, job creation.

On the proposal of the Minister has responded to Sergei Sobyanin, also present at the forum. “I’m afraid it’s as dead a poultice. Because if you will continue the same expenditure trends, these 100 billion rubles will be swallowed up and no one will notice them. At 2.5 trillion of debt is more a political move than an economic one”, — said the mayor of Moscow. To balance the budgets of the need to “dramatically reduce expenditures and mobilize revenues,” said Sobyanin, adding that it is about 2-3 trillion rubles.

“Always welcome “to select and divide”, but as we know from the long history of the country, it may not lead to anything good”, — said Sobyanin. “We’ll see”, ” said Siluanov.

That the government proposes to narrow the gap in living standards between regions in the next three years to allocate part of income taxes in favor of poor areas in mid-September, wrote “Kommersant”

Now the rate of income tax is 20%, the Federal budget is only 2 percentage points, the rest goes to the regions. These contributions, together with tax on income of individuals form the basis of their budgets. According to the Ministry of Finance for seven months in 2016, the entities received in the form of income tax 1,451 trillion — 3.5% more than the year before.

As wrote “Kommersant”, the officials propose regional 18% of revenue centralization in the Federal budget one percentage point. As a result, the government plans to 117 billion rubles, of which 84 billion roubles offers to send additional subsidies to poor regions and 20 billion to pay the most dynamically developing regions in the form of grants for the high growth rate of the regional tax potential. Another 13 billion roubles will remain to the government as compensation for lost expenses.

Source