The state of YaNAD finances.

Considering the finances of YaNAD and comparing it with those of the other Russian regions, one can note that this Autonomous District is one of the most prosperous as far as the financial aspect is concerned. The main index, characterizing the state of finances of the RF member, is the relation of taxation potential (the total sum of taxes collected on the territory of the region) to the expenditures of the local budget. Low value of this index reveals the predisposition to the local budget deficit and the regions dependence on the non-tax sources of income (mainly the external sources), which are often irregular and unstable. Thus, the lower the relation of taxation potential to the expenditures, the lower is the ability of the local authorities to meet the financial obligations to the investors.

In 1996 Yamalo-Nenetsky Autonomous District was among 9 RF members, whose index of local expenditures provision by the local taxes exceeded the value of 1.5. So it entered the group of leading donors of Russia after Moscow, Khanty-Mansi Autonomous District, Samara, Nizhny Novgorod, Perm and Sverdlovsk Regions. The index of YaNAD was 1.63, which substantially surpassed the average level in Russian Federation 1.38.

One more important index is the volume of collected taxes per head of the population. As a rule this index is especially high in the oil and gas extracting territories, financial and banking centres and some of the industrially developed regions. The taxation potential is comparatively small in agricultural and non-industrialized regions. The index of collected taxes per head of the population correlates with the ability of the local authorities to meet the financial obligations to the investors. In this case Yamalo-Nenetsky Autonomous District is again among the best in Russia. The relation of the collected taxes per head of the population in YaNAD to the corresponding average index in Russia is 7.94 (the second place in Russia after Khanty-Mansi Autonomous District). For comparison we may show this index values for Moscow 3.39, and St Petersburg 1.11. Of course the low population density in the northern regions should be taken into consideration, but such a marked superiority of YaNAD is in any way very instructive. At present over 60% of federal budget revenue return comes from ten members of Federation, while the total population of these regions is only 28% of the population of Russia. Yamalo-Nenetsky Autonomous District is one of the main budget-forming regions of RF.

The main budget-forming regions of Russia

Member of Russian federation

Percentage of the total population of Russia, %

Percentage of the federal budget revenue in 1996, %

 

Yamalo-Nenetsky AD

Moscow

Khanty-Mansi AD

Moscow Region

St Petersburg

Sverdlovsk Region

Samara Region

Nizhny Novgorod Region

Perm Region

Krasnodar region

Total for 10 regions

 

 

0,3

5,9

0,9

4,5

3,3

3,2

2,2

2,5

2,0

3,3

60,7

 

2,2

27

8,9

5,2

4,2

3,8

3,2

2,6

2,0

1,7

Source: Business climate in the regions of Russia. Moscow, 1997.

The state of finances of the member of RF may be as well illustrated by the difference (balance) between the sum of taxes, transferred from the region to the federal budget, and the amount of federal financial assistance to this region per head of the population. The region with positive balance is classified as donor, and that with positive balance as recipient.

Yamalo-Nenetsky Autonomous District in 1996 (as well as in the previous years) had positive balance of finance transference regioncentre with excess of 9 767 roubles per head of the population (this index is higher only in the case of Khanty-Mansi Autonomous District 14 320 roubles per head).

The balance of finance transference regioncentre of RF members, emitting bonds

Member of Russian Federation

Transference balance,

Thousand roubles per head

Yamalo-Nenetsky AD

Moscow

St Petersburg

Yaroslavl Region

Tatarstan Republic

Volgograd region

Orenburg Region

Sverdlovsk Region

Cheliabinsk Region

Novosibirsk Region

Sakha Republic (Yakutia)

Average for RF

9767

5973

1565

1239

529

645

778

1475

761

816

- 480

1086

Source: Business climate in the regions of Russia. Moscow, 1997.

The above information makes it possible to consider Yamalo-Nenetsky Autonomous District one of the most successful regions of Russia. The majority of special indexes show that the budget sphere condition of Autonomous District is quite favourable when comparing with other members of RF. It is safe to say that, with other conditions being equal, the administration of YaNAD has greater potentialities for its obligations discharging, than most of the other RF members.