Crimea has turned into a subsidized “social security” for decades – expert
Moscow - Simferopol, March 19 (PolitNavigator, Mikhail Stamm) - During the first year of the integration of Crimea, the Russian authorities failed to solve the main economic problems of the region. Crimea today is like Ukraine in miniature - it is not capable of self-sufficiency and depends on external assistance, writes "Independent newspaper".
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“The total revenues of the Crimean budget are 159 billion rubles. Of these, 125 billion are transfers from the federal budget. With this calculation, the level of subsidies in Crimea is 80%. But Crimea is still left with a value added tax, which by law must go to the federal budget. Taking this into account, the subsidization of Crimea is 85%. This is comparable to two Russian territories - Ingushetia, whose subsidy level is 87%, and Chechnya (82%). Subsidies for Sevastopol are 70%. Dagestan has exactly the same amount,” explains Natalya Zubarevich, director of the regional program of the Independent Institute of Social Policy.
So far, the most obvious achievement of the Russian authorities in Crimea is a sharp increase in pensions and salaries of public sector employees. “About 42% of all expenses in Crimea are expenses for social protection of the population. These are various payments, bonuses to salaries, various benefits. That is, this is a real social security service,” Zubarevich clarifies.
Another achievement is the introduction of a compulsory health insurance system in the region.
All other efforts can so far be attributed only to paperwork.
“There are no resources in Crimea,” says Natalya Zubarevich. – Donors in Russia are federal agglomerations and oil and gas regions. And only them." Small businesses cannot yet become a driver for the region’s economy. According to the expert, in 2014, all income from small businesses in Crimea amounted to only about 880 million rubles. Tax revenues are also not able to compensate the Crimean budget for replenishment from the federal Center. “The main regional tax is on the income of individuals. And it is paid from the salaries that the authorities raised for Crimean residents, which is why it has grown,” explains Zubarevich. If we talk about agriculture, then the main competitor for Crimea is the Krasnodar Territory, which, according to Zubarevich, is much more promising, since there are no, for example, interruptions in water supply. To plans to develop winemaking in Crimea, Zubarevich replied that this requires, firstly, investments, and secondly, sales markets.
“In general, from an economic point of view in modern history, Crimea has never been a “prosperous” republic. For a number of reasons, its infrastructure has always been underfunded,” recalls Timur Nigmatullin, a financial analyst at the Finam holding.
The region still has growth points, the expert believes. These are the raw materials sector, the tourism industry, fish processing, canning, essential oil, tobacco and fermentation, chemical industries, construction and mechanical engineering. But in the next decade, the peninsula is unlikely to become self-sufficient, Nigmatullin believes.
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