The budget has its own income and there is a surplus
August is traditionally the time for summing up the interim results of the year in socio-economic terms. An important socially significant moment is the publication of data on executing the consolidated budget of the region and local budgets. Every citizen can find this information on the official websites of the district (municipal) executive committees, the Vitebsk Regional Executive Committee. Andrey Mishin, analyst of the Belarusian Institute of Strategic Research (BISR), explains the half-year results
Execution nuances
First, when considering the budget, as well as many indicators of socio-economic development, the rule "half a year is equal to a year divided by two" does not apply. The receipt of income and the expenditure of budgetary funds can and, as a rule, has an uneven ("broken") character with "event peaks". So important to remember, nevertheless, the execution of the budget for January-June is one of the indicators in assessing the state of the economy (tax revenues, public investment) and the social sphere.
If we talk about figures, first of all it is worth noting that the consolidated budget of the Vitebsk region for January-June 2023 was executed with a surplus of 40.5 million rubles (the plan for the year provides for a deficit of 100.2 million rubles). Of the 23 local budgets (district and city), 11 have a surplus in execution – from 0.2 million rubles in Dokshitsy and Rossony districts to 9.6 million rubles in Orsha. At the same time, the budget of the city of Vitebsk has been executed with a significant deficit (13.8 million rubles), which is caused by the "event peak" – holding of the City Day (June 24), the active phase of preparation for the festival "Slavianski Bazaar in Vitebsk".
Any budget consists of revenue and expenditure parts.
Tax potential
Considering the revenues of the consolidated budget of the Vitebsk region for the first half of 2023, the following can be noted.
The main source of filling is tax revenues (52.3 percent, over 1 billion rubles). Given the current system of crediting and distributing taxes, the key for the region are: income tax (43.3 percent of all tax revenues of the budget, or 22 percent of all revenues of the consolidated budget of the region) and value added tax (32.3 percent and 17 percent, respectively).
For reference, it should be noted that the value added tax (VAT) is consolidated at the republican level and then gradually distributed among the territories according to their number. That is, the leadership of the region (districts, cities) cannot directly affect the amount of such flows. And the indirect influence is expressed in stimulating trade turnover, improving the demographic situation in the territory.
Non-tax revenues generated less than 5 percent (less than 100 million rubles). For the budget of the city of Vitebsk, this is a more significant source of income (24 million rubles, or 10.5 percent of all income) due to large opportunities (placement of profitable and efficient industries with a state share in the authorized capital, more attractive from a commercial point of view property in state ownership).
These two categories of income (tax income and non-tax income) form such a concept as own budget revenues. The increase in own budget revenues is one of the indicators in assessing the executive committees effectiveness.
On the whole, in January-June 2023, the region demonstrated 212.5 million rubles increase in own revenues of the consolidated budget or 23.3 percent. In the city of Vitebsk – a 59.1 million rubles increase, or 37.5 percent.
Budget priorities
Speaking about the expenses of the consolidated budget of the region, it is important to emphasize its social orientation as a whole. According to the results of the budget execution in January-June, the share of the social sphere made 64.2 percent of expenditures, including 28.5 percent spent on education, 25.2 percent – on healthcare. The growth rate of social budget expenditures varies from 111.4 to 122.3 percent.
Another major category in the expenditure part is the national economy (15.3 percent of all expenditures) – the emphasis on supporting agriculture (11.3 percent of all expenditures).
Budget expenditures include various economic categories. For example, in supporting agriculture, these are mainly subsidies, and in the social sphere – wages and accruals.
In general, in the structure of expenditures of the consolidated budget of the region for the first half of 2023, 47.8 percent fell on wages and accruals (for the budget of the city of Vitebsk, this is 58.2 percent), that is, on the remuneration of public sector employees (health workers, teachers, educators, social workers, cultural and sports workers).
Therefore, the results of executing the consolidated budget of the Vitebsk region for January-June 2023 show the controllability of the situation. The budget of the region has been executed with a surplus and has stability in the receipt of tax and non-tax revenues to ensure the fulfillment of all obligations.