The Quality of Life of the Population through the Prism of Budget

Balance in the Conditions of Development of the Kemerovo Region

Vera Shipunova

, Julia Klimashina and Ludmila Sabanova

Siberian State Industrial University, Novokuznetsk, Russian Federation

Keywords: The Budget of the Region, Tax and Non-Tax Revenues, Balanced Budget.

Abstract: The article presents the analysis of the budget provision of Kemerovo region in comparison with other regions

of the Siberian Federal District, which includes various economic stages: post-crisis - 2000-2003; recovery

and growth - 2004 - 2007; the crisis of 2008–2009; recovery and latent crisis –2010 - I quarter 2014; external

economic sanctions - II quarter. 2014- 2019. The data used for filling the budgets of the regions of the Siberian

Federal District are due to the tax and non-tax revenues, as well as the gratuitous receipts, considered the

balance between the formed and the executed budgets.

1 INTRODUCTION

The Siberian Federal District (further written as the

Siberian Federal District) is a resource pantry of

Russia and the whole world, has large reserves of

hydrocarbons, coal, uranium, ferrous, non-ferrous

and precious metals, timber, water and hydropower

resources. The coal reserves are 80% of all Russian

reserves, copper 70%, nickel 68%, lead 86%, zinc

77%, molybdenum 82%, gold 41%, platinum group

metals 99%, hydropower resources and timber

reserves - more than 50%.

Fresh water supplies are becoming of great

importance. Large Siberian rivers and Lake Baikal

are becoming the strategic resource of a planetary

scale. The resource of free territories, ecologically

clean, not prone to natural disasters and suitable for

human life and economic activity, will be of great

importance too. The global climate changes will only

increase the value of this resource.

The territory of the Siberian Federal District is

30% of the territory of Russia, the population is

19,287.5 thousand people (on January 1, 2018).

Kemerovo Region is one of the regions of the

Siberian Federal District. The total area of Kemerovo

region is 95.7 thousand km2 (1.9% of the territory of

the Siberian Federal District; 0.6% of the territory of

the Russian Federation). By area, Kemerovo region

https://orcid.org/0000-0001-5692-6580

https://orcid.org/0000-0002-4268-1372

ranks 10th in the Siberian Federal District. The

population (on January 1,2018) is 2,694.9 thousand

people, it is the 3rd place among 12 regions of the

district, the 17th place in Russia. The population

density is 28.3 people. per 1 km2, or the 1st place in

the district (Chernova et al., 2019)

Kemerovo region is one of the most developed

regions of Siberia with a pronounced specialization in

raw materials. The industry is the leading sector of the

region's economy. Together with the energy sector, it

makes the largest contribution to the gross regional

product (further written - GRP) - 49.8%, which is

much higher than the average figure for the Siberian

Federal District and the Russian Federation. At the

same time, the region in the national and international

division of labor specializes in the production of raw

materials and products of its primary processing (On

approval, 2015).

In the industry structure of the regional economy,

prevails the traditional industry branches, developed

mainly by the middle of the 20th century: ferrous

metallurgy, coal industry, chemistry.

Today Kemerovo region produces 56% of

Russian coal, including 76% of the coking coal. The

share of Kemerovo region in the all-Russian

production of steel and rolled ferrous metals is 14%,

ferrosilicon - 53%, railway main rails - 80%, tram

rails - 100% (On approval, 2015).

Shipunova, V., Klimashina, J. and Sabanova, L.

The Quality of Life of the Population through the Prism of Budget Balance in the Conditions of Development of the Kemerovo Region.

DOI: 10.5220/0010664500003223

In Proceedings of the 1st International Scientiﬁc Forum on Sustainable Development of Socio-economic Systems (WFSDS 2021), pages 96-101

ISBN: 978-989-758-597-5

2 RESEARCH METHODS

The empirical basis of this study was the study and

analysis of the budgetary provision of Kemerovo

region as one of the regions of the Siberian Federal

District. The systematic approach made it possible to

comprehensively and holistically study this issue.

The methodological basis of the study was the

scientific and educational literature given in the list of

sources.

When setting the goal and defining the main tasks

at the beginning, the team of authors used the

abstract-logical research method to study

systematically the features of the budget Kemerovo

region, its balance and correlation with the standard

of living of the population.

During the discussion, the heuristic and logical

methods of research were used. The reliability and

validity of the results proves the use and application

of statistical and experimental methods in research.

3 RESEARCH RESULTS

The standard of living of the population is an

economic category. This is the level of provision of

the population with the necessary material goods and

services.

The standard of living is the level of well-being of

the population, the consumption of goods and

services, a set of conditions and indicators which

characterize the measure of satisfaction of the basic

needs of people.

At present, when the economic systems of

countries are deforming and changing, the main goal

is the implementation the principle of the social

orientation of the market economy by improving the

living standards of the population (

www.grandars.ru).

The budgetary system is one of the main

indicators of the standard of living of the population

(The problems, 2019; Shipunova, 2012). The

formation of incomes of the regions of the Russian

Federation is carried out at the expense of tax and

non-tax revenues, gratuitous and non-refundable

deductions, the assistance from the higher budget.

The implementation of the main expenditure

obligations, the performance of the functions

assigned to the regions of the Russian Federation

depends on the filling of the budget revenues

(Mokhnatkina, 2021).

The consolidated budget of a region of the

Russian Federation is a set of regional budgets, local

budgets of territories, that are administratively

included in the region of the Federation without the

budget of the state territorial compulsory health

insurance fund (TFOMI). The consolidated (total)

budget of the region performs the function of

combining the budget indicators of the territory.

The consolidated budget is of great analytical

importance and gives a fairly complete understanding

of the structure of revenues and expenditures of the

budget of the region of the Russian Federation and the

local budgets in it, as well as the powers in financing

budget expenditures of different levels of the budget

system (Kuznetsova, 2020).

The incomes of the consolidated budget of

Kemerovo region in the period from 2000 to 2015

were on the second level. In 2000 the incomes of

Kemerovo region were 15522158 thousand rubles, in

2005. - 75445906.39 thousand rubles, in 2010 -

113379218 thousand rubles, in 2015 increased to

132303224 thousand rubles. Despite the fact, that the

revenues of the consolidated budget of Kemerovo

region increased, and in 2016 were 135,618,438

thousand rubles, the region was in the fourth place in

this indicator. In 2017. the revenues of the

consolidated budget of Kemerovo region were

166917893 thousand rubles. (the second place in the

Siberian Federal District). In 2019, the revenues of

Kemerovo region reached 194,173,400 thousand

rubles. (4th place in the Siberian Federal District). In

the Siberian Federal District, the incomes of

Kemerovo region exceed the incomes of Altai region,

Omsk region, Tomsk region and little lower than the

income of Novosibirsk region (www.ofukem.ru;

www.zakon.kemobl.ru; www.gks.ru;

kemerovostat.gks.ru).

Figure 1: The revenues of the consolidated budgets of the

SFD subjects for 2000-2017, thousand rubles.

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The Quality of Life of the Population through the Prism of Budget Balance in the Conditions of Development of the Kemerovo Region

The Revenues of the consolidated budget of

Kemerovo region from 2016 to 2018 show significant

growth, this was achieved due to the rapid growth of

coal prices, which in three quarters of 2017,

compared to the same period in 2016, increased by

almost 50% for steam coal and by 90% for coking

coal. This, in turn, led to an increasing in the profits

of the coal enterprises and an increasing income tax

revenues. Due to high prices for coal, the budget of

Kemerovo region received more than 50 billion

rubles’ income tax revenues, although at the

beginning of 2017 the regional authorities planned to

receive only 24.4 billion rubles from income tax.

As a rule, the expenditure obligations of a region

of the Russian Federation correspond to the incomes,

received in a certain period of time.

In 2005, the expenses of Kemerovo region were

77,852,534.18 thousand rubles. (second place in the

Siberian Federal District), in 2010. they increased to

117,171,911 thousand rubles. (second place in the

Siberian Federal District). In 2015 Kemerovo region

was in third place in terms of expenditures of the

consolidated budget of the regions of the Russian

Federation (141,239,417 thousand rubles). In 2017

the expenses of the consolidated budget of the

Kemerovo region were 146058333 thousand rubles.

(the fourth place in the Siberian Federal District)

(www.ofukem.ru; www.zakon.kemobl.ru;

www.gks.ru; kemerovostat.gks.ru).

Figure 2: The expenditures of the consolidated budgets of

the regions of the Siberian Federal District for 2000-2017,

thousand rubles.

Throughout the all analyzed period, Krasnoyarsk

region was at the first place in the Siberian Federal

District, both in terms of incomes and expenses, and

Tomsk region was in last place.

The balance of the budget is one of the principles

of the budget system, which means that the amount of

budgeted expenditures must correspond to the total

amount of budget revenues and cash receipts from the

sources of financing its deficit (Shavina and

Prokofev, 2020).

In Kemerovo region, there has been a budget

deficit for many years. In 2005, the deficit was

2,406,627.79 thousand rubles, on December 1, 2017.

it was 11060171.00 thousand rubles, increased by 4.5

times over the current period. For 2017 Kemerovo

Region exceeded the budget with a surplus of

20,859,560 thousand rubles (www.ofukem.ru).

Figure 3: The surplus / deficit of the consolidated budgets

of the regions of the Siberian Federal District for 2000-

2017, thousand rubles.

By the end of the analyzed period, we see the

deficit of the consolidated budget of a region of the

Russian Federation in four regions. The largest deficit

is in Tomsk region (-5971407 thousand rubles), the

smallest is in Irkutsk region (-894601 thousand

rubles) (www.ofukem.ru; www.zakon.kemobl.ru).

The balance of the budget, first of all, is ensured

by the revenues of the region. The incomes of the

regions of the Russian Federation are formed from the

tax and non-tax revenues, assigned to a certain level

of the budget. The alignment of the budgetary system

is also ensured thanks to the assistance to the budget

from higher budgets in the form of grants, subsidies,

etc.

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Krasnoyarskregion Kemerovoregion

Tomskregion Irkutskregion

Novosibirskregion Omskregion

Altairegion

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WFSDS 2021 - INTERNATIONAL SCIENTIFIC FORUM ON SUSTAINABLE DEVELOPMENT OF SOCIO-ECONOMIC SYSTEMS

The largest part of the budget revenues is the tax

revenues. The best collection of tax revenues

throughout the analyzed period is observed in

Krasnoyarsk region. In 2005, 74,754.2 million rubles

were collected, it is 96.2% of the total revenues of the

region. In 2010, the collection of tax revenues was

164656.7 million rubles. (92.32% of total revenues),

in 2015 the tax revenues were 353,601.7 million

rubles. In 2016, the tax revenues of Krasnoyarsk

region were 371,671.7 million rubles. (the growth

since 2005 - almost 5 times) (kemerovostat.gks.ru).

Figure 4: The revenues from taxes and fees to the

consolidated budgets of the regions of the Siberian Federal

District for 2005-2016, total, million rubles.

The smallest tax revenues throughout the

analyzed period were observed in Altai region. In

2005, the tax revenues reached 15,604.7 million

rubles, which were 44.29% of the total revenues of

the region, in 2016 the tax revenues of Altai region

were 73,135.7 million rubles. (73.53% of total

income) (www.gks.ru).

Kemerovo region was in the second place in the

Siberian Federal District in terms of collection of tax

revenues in 2005 (the tax collection was 61611.1

million rubles, which is 81.67% of the total revenues).

In 2010, the tax revenues were 94,760.2 million

rubles. (83.58% of the total income), in 2015 they

were 107,268 million rubles. (81.08% of the total

income). In 2016, the tax revenues of Kemerovo

Region were RUB 102,048.2 million. (66.12% of

total income) (growth since 2005 - 1.66 times). In

2017, the revenues were 153,774.8 million rubles.

(the fourth place in the Siberian Federal District)

(www.gks.ru).

The important value in the balance of the budget

is the completeness of tax collection revenues. The

tax income debt does not allow the provision of

expenditure obligations of the region of the Russian

Federation.

In 2005, the largest debt on taxes and duties from

the legal entities and individuals to the budgetary

system of the Russian Federation was observed in

Krasnoyarsk region and was 16262.6 million rubles.

The smallest tax debt was in Altai region and was

6054.4 million rubles. In Kemerovo region, the debt

on taxes and duties in 2005 was 14678.2 million

rubles. (the second place in the Siberian Federal

District) (kemerovostat.gks.ru).

Figure 5: The taxes and fees debt of legal entities and

individuals to the budgetary system of the Russian

Federation for 1995-2016, total, million rubles.

In 2010, the largest debt on taxes and fees was

identified in Kemerovo region and was 17,723.3

million rubles.

In 2016, the tax and fees debt in Kemerovo region

was 18,101.7 million rubles. – the second place in the

Siberian Federal District. In 2017, the tax and fees

debts in the Kemerovo Region were 9009.4 million

rubles. - the sixth place in the Siberian Federal

District.

The smallest debt, from 2006 to the present, is in

Tomsk region (www.gks.ru).

One of the priority tasks of the financial policy of

the state is the creation of an effective and efficient

system of interbudgetary relations in terms of the

development of a mechanism for equalizing the

budgetary provision in the regions of the Russian

Federation (Bukharsky and Lavrov, 2020).

The budget alignment is a process carried out by

higher-level authorities in order to smooth out the

differences in the levels of socio-economic

development of territories, to ensure a balance of

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The Quality of Life of the Population through the Prism of Budget Balance in the Conditions of Development of the Kemerovo Region

budgets at all levels and a relatively equal opportunity

to implement social guarantees throughout the

Russian Federation.

One of the instruments of interbudgetary

regulation are gratuitous and irrevocable receipts in

the form of grants, subsidies, subventions.

Throughout the analyzed period, the Altai region

is the most subsidized region in the Siberian Federal

District. In 2005, the gratuitous and irrevocable

receipts in the Altai region were 16319822443.54

rubles, in 2010 they increased to 331.86986644.78

rubles. In 2017. this type of income was

32134916679.99 rubles. (almost doubled)

(www.ofukem.ru; www.zakon.kemobl.ru;

www.gks.ru; kemerovostat.gks.ru).

Figure 6: The gratuitous and irrevocable incomes from the

budgets of the budgetary system of the Russian Federation

(execution) for 2000-2017, rubles.

The greatest independence is observed in Tomsk

region. In 2005, the volume of gratuitous and

irrevocable incomes in Tomsk region were

2,625,269,249.76 rubles, in 2010, the support from

higher budgets was 11194816622.83 rubles. In 2017

this type of incomes was 9782479407.52 rubles

(www.ofukem.ru; www.zakon.kemobl.ru;

www.gks.ru)

In Kemerovo region, the support from higher

budgets was 6,334,785,721.67 rubles. According to

this indicator, the region in 2005 was in sixth place,

but in 2017 Kemerovo region took the third place in

terms of subsidies, putting this type of income to

19851619339.17 rubles. (growth to the level of 2005 -

3.1 times) (www.ofukem.ru; www.zakon.kemobl.ru)

One of the items of expenditure obligations of the

region of the Russian Federation is the service of the

state debt, which, first of all, related to the budget

deficit.

Figure 7: The expenses for the state debt service of a region

of the Russian Federation (execution) for 2000-2017,

rubles.

The largest volume of expenses throughout the

analyzed period for the state debt service of a region

of the Russian Federation is observed in Krasnoyarsk

region. The smallest volume of expenses is in Altai

region. Kemerovo region in this indicator in 2005 was

in the seventh place (1960 31759.49 rubles), in 2010

in the sixth place (450,713,519.16 rubles), in 2015 in

the fourth place (2649543108.81 rubles). In 2017,

according to this indicator, Kemerovo region is in the

second place and the costs for the state debt service

of a region of the Russian Federation were

3233099947.97 rubles (www.ofukem.ru;

www.zakon.kemobl.ru; www.gks.ru;

kemerovostat.gks.ru).

4 CONCLUSIONS

The results of the analysis suggest that the budget of

Kemerovo region is low. Kemerovo Region is in the

fourth place in the Siberian Federal District in terms

of its income and expenditure obligations. Kemerovo

region is also in the fourth place in terms of tax

collection. The subsidy (dependence) of the budget of

Kemerovo region from the Federal budget is in the

third place in the Siberian Federal District.

Throughout the analyzed period, there was a budget

deficit. For the first time, over the past 14 years,

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WFSDS 2021 - INTERNATIONAL SCIENTIFIC FORUM ON SUSTAINABLE DEVELOPMENT OF SOCIO-ECONOMIC SYSTEMS

100

Kemerovo region was able to execute its budget

without a deficit. The revenues of the consolidated

budget of Kemerovo region in 2017 demonstrate the

significant growth, this was achieved due to the rapid

growth in coal prices, which for three quarters of

2017, compared to the same period in 2016, increased

by almost 50% for steam coal and 90% for coking

coal. This, in turn, caused a profit increase of coal

enterprises and the income increase from the income

tax, but this cannot be a constant budget growth

provision of Kemerovo region.

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