Page 65 - RusRPTMar19

the Kostroma region in 2018 reduced the national debt by 7%, and the market - by 10%, then Mordovia, by contrast, increased debt - by 12% and 45%, respectively. These two regions, as well as Khakassia (also reduced debt for 2018) are on treasury escort and are forced to coordinate their expenses with the Ministry of Finance.
In 2017, Mordovia’s debt-to-revenue ratio was a whopping 185%. MinFin says regional public debt shrunk by 4.7% in 2018 and that it doesn’t expect any region to default on their debt this year. Back in December, a monitoring by RANEPA reported that 15 regions found themselves in deficit in 2018, against 30 the year before.
The debt situation in the regions remains fragile however, and it’s likely that at least part of this year’s good numbers were due to an influx of money into regional budgets prior to the presidential election. For governors, the dilemma remains the same: the centre demands increased investment to fulfill the May decrees while requiring fiscal responsibility.
65 RUSSIA Country Report March 2019 www.intellinews.com