Saint-Petersburg 2014—2015 Contents Introduction 5 1. Social and economic situation in St. Petersburg in 2014 7 2. Organization of St. Petersburg management in 2014—2015 11 3. St. Petersburg budget execution in 2014 22 3.1. Execution of the revenue side 24 3.2. Execution of the expenditure side 30 3.3. Investment expenditure 53 3.4. Financing sources of St. Petersburg budget decit 55 3.5. St. Petersburg debt management in 2014 57 3.6. Execution of local budgets of municipal formations of St. Petersburg in 2014 58 3.7. Main characteristics of interrelations of St. Petersburg budget with the federal budget in 2014 59 4. St. Petersburg budget for 2015 and planned period of 2016 and 2017 62 4.1. St.Petersburg’s revenue side 62 4.2. St.Petersburg’s expenditure side 64 Appendixes 67 Saint-Petersburg. 2014—2015 3 Introduction Dear Readers! 2014 was approved by the Chamber of Control and Accounts Here is the next issue of annual publication with results of St. Petersburg in June 17, 2015. of social and economic situation in St. Petersburg for 2014 The Legislative Assembly of St. Petersburg has conducted and in the beginning of 2015; you can find here the system public hearing on draft law “On execution of St. Petersburg of St. Petersburg management arrangement; the main execution budget for 2014”. In accordance with St. Petersburg law measures of the municipal budget in 2014 are specified as well “On procedure of public hearing conduct on draft budget as main measures of St. Petersburg budget for 2015 and planned of St. Petersburg and annual draft report on execution period of 2016 and 2017 considering corrections approved by of St. Petersburg budget” and solution of the budget and finance the St. Petersburg Legislative Assembly in May 2015. committee dd 01.06.2015 the public hearing for draft law Section 1 “Social and economic in St. Petersburg “ On St. Petersburg budget execution for 2014” were conducted in 2014” states main measures characterizing social and via web-conferencing from 10 AM 11.06.2015 until 17 PM economic situation of St. Petersburg in the specified period. The 18.06.2015. Within the specified period the citizens were able section was prepared based on information of the Federal State to send their questions and comments to the draft law via Statistics Service (Petrostat) represented on the official site the official web-site of the Legislative Assembly. The law (http://petrostat.gks.ru); annual report of the Government of St. on budget execution was accepted by the Legislative Assembly Petersburg to the Legislative Assembly dd 08.04.2015; report on of St. Petersburg in June 24, 2015 and signed by St. Petersburg the social and economic development of St. Petersburg for 2014 Governor in July 3, 2015 No. 423-81. prepared by the Committee for Economic Policy and Strategic The report was approved: Planning. - for revenues amounting to 426,224,738 kRUB.; Section 2 “Organization of St. Petersburg management in - for expenditures amounting to 440,773,588 kRUB.; 2014-2015” describes the establishment of subject of the Russian - for deficit amounting to 14,548,850 kRUB. Federation — St. Petersburg city and it represents official Budget revenues of St. Petersburg for 2014 were 104.3% materials located on official Web-sites of the Legislative as compared to January-December 2013. The expenditure side Assembly of St. Petersburg (http://www.assembly.spb.ru), was executed by 97%. St. Petersburg Government (http://www.gov.spb.ru), Statutory Information on St. Petersburg law “On St. Petersburg budget Court (http://www.spbustavsud.ru), municipal government execution for 2014” in full is located on web-site of the Finance of St. Petersburg (http://омсу-спб.рф), other official information committee of St. Petersburg on the following web-site: materials. The most volumetric section of the digest is section http://www.fincom.spb.ru/comfin/acts/text.htm?id=808@cf_ Section 3 “Execution of St. Petersburg budget in 2014” npa_bud which states main measures of execution of municipal budget in Section 4 “St. Petersburg budget for 2015 and for planned 2014, - revenues, expenditures, budget deficit, financing sources period of 2016 and 2017” describes stages of budget process for budget deficit, amount of St. Petersburg government debt. in St. Petersburg for the budget of current 2015, main measures Execution of local budgets of municipal formations of municipal budget for 2015 are stated (revenues, expenditures, of St. Petersburg and main characteristics of interrelations budget deficit, financing sources of the budget deficit) of St. Petersburg budget with the federal budget in 2014 is given. considering corrections approved by the Legislative Assembly In April 08, 2015 the Governor of St. Petersburg rendered in June 3, 2015 (St. Petersburg Law No. 344-52 dd 08.06.2015). an annual report of the St. Petersburg Government for the last Information on the St. Petersburg draft budget and approved 2014 year in the Legislative Assembly of St. Petersburg. laws of St. Petersburg on the budget is timely and fully located The report on St. Petersburg budget execution for 2014 was on web-site of the St. Petersburg Finance Committee in Internet approved at the session of St. Petersburg Government in May 19, — http://www.fincom.spb.ru. Information is provided both 2015 and submitted for consideration of the Legislative in so called machine-readable format and can be freely used Assembly of St. Petersburg. The conclusion on result of external in any purposes including for pursuance of independent audit of the annual report on St. Petersburg budget execution for analytical studies. Saint-Petersburg. 2014—2015 5 1. Social and economic situation in St. Petersburg in 2014 In the report of the St. Petersburg Governor 1.1 Industrial production on performance results in 2014 made public in the During January-December 2014 the industrial Legislative Assembly of St. Petersburg in April 8, 2015 production index in St. Petersburg decreased by 8.2% it was observed that regardless of sti pressure of West as compared to the similar period of the last year and was sanctions, shocks on oil and hard currency markets 91.8%. e industrial production index in manufactures the city showed the best of possible results and entered which share falls to 93% of total volume of shipped in three best budget revenues in terms of volume as well industrial products was 91.0%. as it is in the leader team in terms of growth of tax and Reduction of product yield in food production including non-tax revenues. Petersburg is one of few subjects beverage foods and tobacco (IPI — 94.3%) has negatively of the Russian Federation where the real income aected total results of development of manufactures. of the population in 2014 did not drop but rather increased Enterprise performance results of this branch mainly are by 2.9%.Average nominal wage in our city has increased dened by reduction of beer (by 23.0%) and tobacco almost by 11% and amounted to 40, 660 RUR. (by 8.4%) production which is due to implementation St. Petersburg stability in 2014 was conrmed also of the state policy for reduction of scope of excessive use by growth of gross regional product by 1.5%. e result of alcoholic products and measures directed toward control is also considerably higher than the average Russia-wide of smoking, rise of excise duties and cost of alcoholic result. Turnover of St. Petersburg organizations was 109.5%. and tobacco products correspondingly. At the same time Public health service, education, transport and communi- this industrial sector has achieved increase in production cation branches were actively developed. Our city has of such product kinds as sausage products (by 12,3%), surprise many people in Russia by 6% export increase. confectionery (by 10,5%). And the main increase fell within the far-abroad countries. Negative aect on industry growth dynamics Stability of Petersburg economics within the reported of St. Petersburg in 2014 was caused by production ramp- period could not be shook even by the reduction down in production of electric equipment, electronic of industrial production index by 8.2% registered and optical equipment (IPI — 92.7%) and the production by Petrostat. Upon that other indicators did not show that output in production of vehicles and equipment has also out industry settled down so markedly. Enterprises reduced (IPI — 92.7%). e IPI in another sector increased quantity of product shipments by 7.5%, number of machine-building complex – production of machines of employees in the Petersburg industry remained and equipment in 2014 was 110% as compared to the similar at the level of the preceding year and average monthly period of the preceding year. Positive dynamic of product salary increased almost by 10%. output was also observed in production of other non- According to data of independent experts the volume metallic mineral commodities (IPI — 109.5%). e IPI of construction and reconstruction of industrial areas in metallurgical production and production of nished in Petersburg increased by 31.6% in 2014 as compared metal products for January-December 2014 was 90,2% to 2013 and amounted to 465 thousand m2. Almost as compared to the similar period of the preceding year. 400 thousand m2 of them are new areas. Now the city task e IPI in textile and garment manufacture was 83.3% is to open all producing units there as soon as practicable. as compared with January-December 2013. Decrease Natural population increase has been continued for in production of industrial gases, detergents has aected three consecutive years. e infant mortality rate adversely on the IPI for “Chemical production” business is traditionally one of the lowest in the country and in the (IPI — 76.5%).