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).

Comment

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).