Regions will receive 100 billion rubles to compensate for the loss of crisis

The Government has made to the State Duma a package of amendments to the legislation to aid regions. Regions bear losses because of the crisis: their tax revenues estimated at the Ministry of Finance may be reduced in 2009 to 700-800 billion rubles: revenue from income tax reduced by 25-30%, from income - 5-10%.

Some 100 billion rubles regions will lose because of the tax innovation - reducing income tax from 24% to 20%, the limit depreciation premium increase from 10% to 30% and property deduction for the purchase of apartments from 1 million to 2 million rubles, reported " Vedomosti. "

They convey the regions 0.5% income tax (their share rise from 17.5% to 18%) and 100% excise tax on oil and lubricants (now - 60%). This will replenish the regional budgets, 43.1 billion and 59.4 billion rubles, respectively, said in a memorandum to the bill.

Regions are able to use funds from grants, subventions and other intergovernmental transfers are not used in the current year, in the next fiscal year for the same purpose.

Governor of Perm region, Oleg Chirkunov supports the transfer tax, but believes that those funds would not be enough to restore pre-crisis levels. It recommends that the regions in the I quarter of 2009 to fund only the immediate costs. Perm Territory budget for next year have been revised: the income portion reduced by 35%, half that amount falls due to the reduction of income tax returns.

Director of the Institute of Regional Finance Bulat Stolyarov admits that falling income regions can reach 1.5 trillion rubles. The following year, businesses will profit little.

Even the Ministry of Finance asked the Government to mitigate the requirements to regions in the allocation of subsidies to their co-power and lower co-financing from them by 5-10% from the current 50%.

The bill will be considered on first reading for 17 December.