The law was made in compliance with the instructions of the President. The rules should contribute to the implementation of priority measures to support the Russian economy and ensure the financial stability of the regions under current conditions.
Regions will be able to receive special loans from the Treasury. The region will be able to repay money for up to 15 years with a payment at a rate of three percent per year. You will have the right to exceed your budget deficit by the amount of said loan. In total, the regions will be able to receive 250 billion rubles.
The government will have the right to cancel the debt of the subjects of the Federation on budget loans.
In addition, self-sufficient infrastructure projects may be financed by the National Welfare Fund. Andrey Makarov, head of the State Duma Committee on Budget and Taxes, explained that there is now a limit on the use of the NWF, and the approved law removes them.
“The new law will provide support to key sectors of the Russian economy and allow for the smooth implementation of major infrastructure projects,” State Duma deputy Nikita Chaplin said in a comment to RG.
Earlier, in his Address to the Federal Assembly, Russian President Vladimir Putin called Treasury loans “a good tool.” “I know that many constituent entities of the Federation are ready to significantly accelerate the renewal of social infrastructure, cultural and sports facilities, emergency housing resettlement, comprehensive development of rural areas. Such an attitude will surely be supported.”
