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MIL OSI Translation. Region: Russian Federation –

The mechanism for writing off debts on budget loans will be improved, which will allow more regions to take advantage of this opportunity. The resolution on this was approved by the Prime Minister Mikhail Mishustin.

Recall that we are talking about regions that are developing the infrastructure (transport, energy, utilities) necessary to launch new investment projects. At the same time, the amount of debt write-off is linked to the amount of taxes that go to the federal budget from the implementation of the investment project.

Previously, the write-off was available only for the taxes of companies created specifically for the investment project. Now, at the request of the regions, taxes from the implementation of new investment projects by existing organizations will also be taken into account.

The resolution signed by Mikhail Mishustin also specifies the list of taxes and fees that are taken into account when writing off debt. We are talking, in particular, about the excise tax on gasoline, water tax, tax on the profits of organizations, on the extraction of minerals and several others.

Earlier, the Government determined that the debt cancellation program applies to projects from priority sectors. These are agriculture, tourism, manufacturing, mining (except for oil and gas), housing and road construction.

The adopted decision will have a complex impact on the socio-economic development of the regions: it will accelerate the creation of new infrastructure and reduce the debt burden on regional budgets.

The approved resolution is part of a package of measures to support the regions. A significant part was devoted to this issue. report of Mikhail Mishustin in the State Duma on May 12… Among the main areas of work, he named the implementation of the measures announced by the President in his Address to the Federal Assembly. In addition to restructuring budget loans and reducing regional debt, this is the replacement of commercial loans with budget loans, the provision of infrastructure budget loans, and, in addition, the issuance of infrastructure bonds that will attract additional extra-budgetary funds for housing construction.

The document will be published.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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