°

ACRE: the third of the Russian regions will be able to avoid the growth of debt in 2020

About a third of Russian regions will be able to avoid the growth of debt burden in 2020 as they approached the beginning of the year with sufficient liquidity, said in an analytical comments of an ACRE, which is available to RIA Novosti.

According to ACRA, tax revenues to the budgets of the regions in 2020 will be reduced in connection with the pandemic coronavirus. In the absence of the ability to reduce costs in 2020 would increase budget deficits. Their mode of funding, according to analysts, will depend on the presence or absence accumulated at beginning of year liquidity.

They estimated how much cash, including cash in hand, balances on Deposit account balances of the Treasury, the regions had at the beginning of this year. The aggregate amount of the balances (excluding funds of Moscow) amounted to 759 billion rubles (20 billion rubles more than on January 1, 2019).

"The growth in cash balances occurred in 46 regions, including the significant rise (over 5%) – 39 regions. The remaining 39 residues dropped, including 31 of more than 5%.

Among the regions, had, at the beginning of the year, the biggest crush of liquidity: Tyumen region, YANAO, Moscow, Khanty-Mansiysk, Tver oblast, Republic of Bashkortostan, Leningrad oblast, Dagestan, Primorski Krai, Altai Krai.

"However, in 37 regions balances at the beginning of this year amounted to less than 5% of their non-tax income (NDI) for 2019, including 15 – less than 1% NND. 14 regions had balances, which constituted less than 5% of average monthly costs in 2019. These regions in case of a significant reduction NND have or incur debt, or to find the reserves to reduce costs," warning in ACRES.