Sevastopol intends to close the budget deficit with a bank loan

The region’s draft budget was submitted to the Legislative Assembly of Sevastopol with a projected revenue volume for 2025 of 65.8 billion rubles, expenses — 70.5 billion rubles, the deficit is planned at 4.7 billion rubles. For 2026 and 2027, revenues are planned at 69.4 billion rubles and 62.3 billion rubles, expenses are 74.4 billion rubles and 67.7 billion, deficits are 5 billion and 5.4 billion, respectively. The budget for 2024 a year earlier was adopted with a deficit of 3.7 billion rubles, with total revenues of 61 billion rubles.

A budget deficit results from an excess of the need for budget expenditures over projected revenues. Bank loans are provided as a source of financing the budget deficit, and therefore public debt is projected in 2025-2027. Currently, the public debt of the city of Sevastopol consists of budget loans from the federal budget; commercial loans have not been attractedsays the response to a TASS request.

It is clarified that the placement of securities by the city budget has not yet been carried out and is not planned.

As follows from the materials of the budget bill, published for the first reading by the Legislative Assembly, the possibility of obtaining loans from credit institutions is provided for with a repayment period no earlier than 2028. The planned amount of funds raised in 2025 is stated at 4.7 billion rubles, in 2026 — just over 5 billion rubles, in 2027 — about 5.4 billion rubles. That is, it will not exceed the maximum budget deficit and, in accordance with the Budget Code of the Russian Federation, will amount to no more than 15% of tax and non-tax revenues.

The government also explained that in 2025, the region’s own budget revenues are projected at 31.6 billion rubles, or 48%. In 2024, according to the initial forecast, they were supposed to be 47%, but according to the data updated to date — 39%, the changes are associated with additional interbudgetary transfers. The budget’s own revenues consist mainly of personal income tax, corporate income tax, taxes on total income and excise taxes.

source: TASS