Crisis to hit Chelyabinsk Region harder than others, Governor says

1 December 2008 (08:14)

All the issues related to our crisis-defying action plan will be looked into at a special meeting each month,’ Governor of Chelyabinsk Region Petr Sumin said in the course of a meeting attended by the heads of the regional municipalities and districts.

‘We’ll investigate these issues in all seriousness, because the situation itself is grave enough. The crisis is to hit Chelyabinsk Region harder than many other Russian regions, as 63% of our industry is made up of metallurgical enterprises, which also means these enterprises’ taxes form over a third of the region’s consolidated budget. Moreover, our budget revenues mainly result from the profit tax (and the profits keep decreasing) and the private individuals’ income tax (and their income is dropping as well). I think things will probably be easier for the so-called recipient regions, while ours will have to take care of itself. We have to make more money and spend less of it,’ the Governor said.

Nevertheless, Petr Sumin emphasized the fact that no cutbacks were expected on the socially important budgetary expenditure items.

‘The public sector workers’ wages, social welfare benefits, education, and healthcare should get their funding in full,’ he promised.

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