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Evgeny Chekin: Economy and social sphere of Yakutia need serious structural changes

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Strengthening the ruble against the dollar led to the fact that the budget of Yakutia is experiencing a deficit of tax revenues from large mining enterprises. In this regard, at the spring session of the Parliament, Prime Minister Evgeny Chekin said that the region needs to make serious structural changes.

"We have a considerable amount of work to optimize the budget in terms of adjusting state programs and reducing costs for, let's say, painless directions," said Evgeny Chekin.

Earlier, the Ministry of Economy of the Republic of Sakha (Yakutia) reported that when adjusting the social state programs, the total amount of their financing is not reduced, but sequestration will affect the activities of the regional investment program. The released funds will be spent on priority and socially significant expenses.

"Right now we do not directly touch people. In such circumstances, the investment program becomes the source of coverage of the budget deficit first. It is clear that there are issues associated with the start of construction of facilities, but it is in this direction that we propose to reduce costs. It just does not make sense to start what we cannot complete," - the Prime Minister stressed.

He recalled that the head of the republic Egor Borisov and the government repeatedly appealed to the Ministry of Finance of Russia to identify the problems of reducing subsidies from the federal budget and the incorrectly set exchange rate parameter of 64.5 rubles to 1 US dollar, which leads to the fact that the region receives less taxes.

"If the situation does not change, everything will become even more complicated. To the next budget adjustment, which is planned for September, we should come with more serious structural changes and proposals that will actually affect all sectors of the economy, the social sphere of the republic," - Chekin said.

At today's session, people's deputies in final reading adopted amendments to the law on the state budget of the Republic of Sakha (Yakutia) for 2017 and for the planning period of 2018 and 2019.

"Substantial changes have been made to the republic's budget. As the Prime Minister noted, it is possibly only the initial stage. Therefore, the relevant committees and ministries should pay special attention to the strategy of social and economic development and environmental doctrine, which we will consider in July," - summed up Parliament speaker Aleksandr Zhirkov.