A budget laid out with a record when Sobyanin deficit

The budget deficit of Moscow in 2017 may be 217,9 billion rubles This follows from the draft capital budget for 2017 and the planning period of 2018 and 2019 years, writing on Tuesday, Vedomosti. The publication notes that such a deficit will be a record at the mayor Sergey Sobyanin.

As the newspaper notes, in the new document, the budget deficit for next year has increased significantly compared to the deficit in the current act – 34 bn In the draft budget for the coming year, revenues will grow, but that is not sufficient to offset soaring costs, the newspaper notes.

The growth of the budget deficit next year due to rising capital expenditure, expressed “Vedomosti” opinion S&P analyst Karen Vartapetov. Citing data from the Targeted investment program, the publication writes that on urban construction in 2016-2019 Moscow plans to spend 1.9 trillion rubles.

Head of Department of economic policy and development Maxim Reshetnikov explained to the newspaper that the increase in development expenditure of the city is connected, including, with the release of major infrastructure projects that the government of Moscow was suspended in 2015 due to the uncertain economic situation. In addition, he said, the city is actively building the metro, preparing for the 2018 world Cup, is implementing large programmes for the modernization of the social sphere and development of the urban environment.

The publication notes that the lion’s share of expenditures of 1.27 trillion rubles earmarked for the program “Development of transport system”. More than half of this amount will be spent on the construction of the subway. About 1.5 times will increase the cost of construction of roads, the newspaper said.

The newspaper also highlights that a key risk when planning the budget of Moscow – the inability to accurately predict the receipt of income tax, which is “extremely volatile” and is highly dependent on tax innovations of the Federal center. Recently, it was decided to increase the Federal share of profit tax from 2 to 3 percentage points from 20% to redistribute the money to support poor regions. Sobyanin called this decision “political” and said that “take away and divide” to anything good does not.

Consultant close to city hall, did not rule out in an interview with the publication that Moscow overestimated the costs, including, and in order to protect balances on their accounts.