The ruble protects the road: the regions for the idea to send a portion of fuel excise duties in road funds

Regional authorities supported the proposal to send a single ruble excise tax for each liter of automotive fuel in 2018, the budgets of the subjects for filling up of the regional road funds. Earlier, Finance Minister Anton Siluanov, speaking in the Federation Council, said that this instruction was given by the President of the Russian Federation Vladimir Putin.

To experts interviewed by TASS said that this decision will allow to solve the problem of shortage of funds for road repairs. Representatives of regional governments claim that “will try to maximize the use of these funds, to put in order road network”.

From deficit to surplus

In Kurgan region expect that the innovation will allow to more systematically use the tools. According to first Deputy Director of the Department of industry, transport, communications and energy of the region Sergey Gorbachev, the ruble excise taxes “very necessary to the Urals”.

“At the moment, filling the road Fund of the Mound – the number one problem. We could not predict their activities, it is difficult to build long-term plans, when all the time engaged in “plugging the holes”. The ruble excise taxes will allow us to proceed to more systematic work in this direction”, – explained TASS reported Gorbachev.

According to him, currently, all municipalities develop a comprehensive program of transport infrastructure development up to 2028. “On June 28 at the city Duma of the Kurgan, we approved this program, from the point of view of costs it is very rich, but from the point of view of filling is the problem. And one of its sources will be just the ruble excise taxes. We understand that to build and in what order, not enough sources (of funding – approx. TASS),” – said the Agency interlocutor.

According to the administration of Kurgan, the program assumes the creation of a Centre of road traffic organization. It should become a coordinating body responsible for the organization of traffic in the city. Also, the programme makes provision for the introduction of intelligent transportation systems, automated system of traffic management, measures to reduce negative impacts of transport on the environment and human health, on developing public transport, creating transport hubs.

Subsidies need to save

Expected economic effect from the ruble excise with a litre of fuel, in the Ivanovo region. However, consider the regional authorities, with the introduction of this norm grants to cancel is not worth it.

“The money from excise taxes, which will be sent to the regions, is unlikely to replace the subsidies allocated to the constituent entities of the Russian Federation Federal budget for the repair and construction of roads. If these revenues will increase (the amount of funds – approx. TASS) in the road Fund at 5-8%, this is already significant. However, I again want to note that this does not negate the needs of the region in Federal subsidies for the maintenance of the road network”, – explained TASS the head of the Department of road economy of the Moscow region Andrey Shushkin.

According to him, this year road Fund Ivanovo region is about 2.9 billion rubles. “It’s a given Federal money, the region has received this year, 114 million rubles. Look that 5-8% of this is already a significant enough amount to expand the repair program”, – said the Agency interlocutor.

He added that the roads of the Ivanovo region more than 11 thousand kilometres, from them on balance of the Department, more than 3.5 thousand km, which are in need of repair. As a matter of priority need to be repaired about a thousand kilometers of roads. “This year we plan to overhaul 105-106 kilometers,” – said Soskin.

Details about calculation

Experts in some regions indicate that prior to implementation of this initiative still need time carefully to make the calculations and understand what specifically the amount of each region will receive.

“Today, the excise tax per ton of gasoline is more than 10 thousand rubles, diesel fuel – 6,8 thousand rubles. Will the planned expulsion of the ruble excise tax per liter of gasoline in the budgets of the regions the cost of fuel is not yet clear. I think few people other than specialists of the Ministry of Finance might tell what share of this excise tax goes into each subject,” – said TASS President of the nonprofit partnership “Altai fuel Union” Yuri Matveyko.

He said that the excise tax filled the road Fund, but the division of the subjects is precisely the number and extent of roads. “If it is an additional excise tax that will go to the road Fund – it’s great,” said Matveyko.

The head of the expert community of the School of Economics and management far Eastern Federal University (FEFU) Maxim Krivelevich also said that to assess the effect of innovations at the moment is extremely difficult. “Given that macroeconomic factors now controlled by the external environment, particularly the level of oil prices. However, any redistribution of tax revenues in favor of regions can be considered positive. The greatest effect will be noticeable in areas with greater population density, where, respectively, consumed more gasoline”, – he explained.

Krivelevich reminded that the condition of roads depends not only on the filling of road funds, but also on the efficiency of their use.

In aid of the roads of the Caucasus and Siberia

The authorities of St.-Petersburg noted that it is too early to talk about the economic effect of this measure.

“While maintaining the government of the Russian Federation the existing procedure of transfer of excises on oil products in budgets of regions, it is possible to speak about increase of incomes of the budget of St. Petersburg due to the transfer of one ruble excise tax per liter of motor fuel in the budgets of the constituent entities of the Russian Federation. However, to assess the real effect of the implementation of this measure will be possible only after consideration of the relevant changes in the legislation”, – explained TASS the head of the Department of revenue of the Finance Committee of St. Petersburg Liliya Falaleeva.

Meanwhile, in the North Caucasus has considered the economic impact of innovations. “I think about 1 billion roubles will get (travel) industry,” said TASS, the head of the Agency for roads of Dagestan Zagid Huchbarov

According to him, in the Republic of weak maintenance, which is the “not much money”. “And these extra money that we receive, it is wise to send for the maintenance of roads to ensure safety. The most important thing. This is a very good initiative,” he added.

According to Khuchbarov, the Dagestan authorities in the past year spent total of 100 million on improving road safety. “As a result, we have accidents (on the roads) decreased by 40%. This extra money we will direct to the full on minor repairs, road maintenance, security surface road,” he explained.

Expected economic effect from the initiatives of the country and in Siberia. “The initiative is very necessary, timely, and we, of course, welcome, and wait for the money to the region, which will help us solve traffic problems in the region”, – said the Chairman of the Committee on budget, Finance and economic policy and property of the legislative Assembly of the Novosibirsk region Alexander Morozov.


Earlier, transport Minister Maxim Sokolov stated that the regional road funds receive less funds from the excise tax on fuels, and, in particular, proposed to revise the standard distribution of these excise taxes between the Federal and regional road funds so that the regions received more. The Finance Ministry originally expected proposals for the transfer fees of these excise taxes in favor of the regions in full from 2019. In response, the President asked the Finance Ministry to consider transfer of at least part of the collected to the Federal budget of excises ahead of schedule.

Putin drew attention to the fact that the network of Federal roads located in the regulatory state in the amount of about 77%, regional roads – only just over 40%.

From 1 June 2016, Russia has changed the standards of distribution of revenues from excise duties on petroleum products. So, in the Federal budget such income received at the rate of 12%, in budgets of subjects of the Russian Federation – at the rate of 88%. Prior to that, 100% of proceeds from excise taxes on petroleum products (gasoline, naphtha, diesel fuel, engine oils for diesel and carburetor (injector) engines) were enlisted in regional budgets. In August 2016, Prime Minister Dmitry Medvedev instructed the government to consider saving the previously existing standard.