Budget of the Mogilev region, first Quarter 2011
Revenues of the consolidated budget of the Mogilev region during the first quarter of 2011 amounted to Br 1034.7 billion, while the expenditure budget equaled to Br 998.3 billion.
65.8% or Br 656.7 billion of the consolidated regional budget was allocated to cover the priority expenses (wages with charges, medicines and medical products, food products, the current budget transfers to population, subsidies, housing organizations, utilities, debt service payments by local authorities and government).
In the first four months of the year the regional budget has minimal surplus. The ongoing financial crisis started in April and therefore it did not have a significant impact on the reported budget figures. At the same time the financial crisis will affect the second quarter of this year and significant deficit of the regional budget is expected. Indeed, it will also affect the decision of the Russian Federation to raise export duties on oil products. First of all, it will impact the chemical and textile cluster of Mogilev (Mogilevchimvolokno, Mogotex).
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.