The Republic budget

Budgetary and fiscal policy of the Republic of Tatarstan aim to preserve, develop and maintain positive trends in economy.

The Republic prepares its budgets on the basis of budgetary indications provided by the Government of Russia to all regions regarding the amounts of social and other spending which it intends to finance.

The main sources of revenue for the Republic are: (i) tax revenues, (ii) non-tax revenues, (iii) transfers from the federal Budget and (iv) revenues from Designated Purpose Funds ("DPFs"). From 2008 the revenues of purpose funds are not recorded separately and they are distributed on other revenue items. Non-tax revenues primarily comprise lease payments for the use of the Republic property, income from the Republic's participation in various state and private enterprises and administrative charges and fines.

The Republic budget (the "Unconsolidated Budget") is unconsolidated and as such, does not include the revenues and expenditures of the Republic's municipal authorities. The Unconsolidated Budget only includes revenues and expenditures (including transfers from the federal budget) of the Republic. A separate budget is produced by each of the Republic's municipalities (currently comprising 43 districts, 2 big cities and 954 urban and rural settlements), based on their own revenues and expenditures (including transfers from the Republican budget). An aggregate budget (the "Consolidated Budget") aggregates all separate budgets in the Republic and the Unconsolidated Budget is also produced. The Consolidated Budget is prepared for administrative and reporting purposes. Each municipality has the right to set its own budget based on its own revenues and spending plans. The Government of the Republic has an administrative role in relation to the municipal budgets and makes transfers from its budget to those municipalities which do not have sufficient revenues to maintain the minimum standards of public services. The requisite standards are set by various ministries of the Republic.

The Republic's Budget Considerations in 2010

Tax revenues grew 1,5% from 2008 to 2010. 54% of budget revenues derived from taxes in 2010. Corporate tax contribution fell from 47% in 2006 to 46% in 2010. Tax collections are at 100% for corporate and individual tax.

Budget deficit represented 0,89% of GRP¹ in 2010.

The following table shows actual revenue and expenditure items of the Unconsolidated Republic Budget as implemented for 2007, 2008, 2009 and 2010.

Source: Ministry of Finance of the Republic of Tatarstan

¹ estimated.