THE REPUBLIC OF INGUSHETIA DECLARED BANKRUPTCY

Ingushetia is the first region of the North Caucasus, which has been declared bankrupt by the federal government. The head of the republic was obliged to sign an agreement with the head of the Ministry of Finance of the Russian Federation, Anton Siluanov, according to which the financial policy of Ingushetia will be managed directly from Moscow.

The order was based on data provided by the external accountants of the Accounts Chamber and signed by Mikhail Mishustin.

Mahmud-Ali Kalimatov, who had been in charge of the region for sixteen months, was unable to restore the republic's solvency. The growth of public debt and a situation close to bankruptcy in the region existed even before Kalimatov took office, but the situation has not improved over the entire period. Experts note that several leaders have changed in the field of finance for this time (Khalukhaev, Dormidontov, Plieva, Esmurziev), but none of them was officially approved as the head of the republican Ministry of Finance.

Now the recovery plan, developed by the Ministry of Finance of the Russian Federation, will have to be approved by the regional parliament.

Earlier, the external accountants of the Accounts Chamber, who studied the problem of the republic's failure to fulfill its obligations, came to the conclusion that the authorities of Ingushetia were actually boycotting the existing agreements on the improvement of public finances. Now, as experts note, the federal authorities will take over a part of the powers in financial management.

It is noted that if the volume of the republic's public debt was 2.4 billion rubles by the beginning of September, then by October, it had grown to 3.3 billion.A growth of 64.2% per month, coupled with an extremely low collection of tax revenues, leads the republic to the complete financial ruin. Unpaid fines and arrears of fiscal payments from businesses exceeded 1 billion rubles.

The target profitability indicators of 4.9 billion rubles per year are unlikely to be achieved, given that the budget of Ingushetia received only 2.65 billion rubles in the nine months of 2020.

According to the plans of the Government, cash payments on budget expenditures will be limited in the territory of the republic. It is also planned to suspend any capital investments and obtaining new loans in order to pay off the existing debt. In the future, the authorities of the republic will have to reduce their financial obligations every year.