History of the Ministry of Finance of the Republic of Tatarstan

History of the Ministry of Finance of the Republic of Tatarstan

1920’s – 1930’s

The financial system of the Republic of Tatarstan dates back to 1920. According to the Decree of the All-Russian Central Executive Committee "On the Tatar Autonomous Soviet Socialist Republic" to manage the affairs of the Autonomous Republic May 27, 1920 were approved by the 10 national commissioners . The decision to establish the Commissioner of Finance of the Republic ( Tatnarkomfin ) was adopted on the same day , which was due to the paramount importance of money , finance and other cost categories in the national economy of the young republic.

At first, the the unit of Tatnarkomfin housed in the same building of the Kazan office of People's Bank of Russia (the former State Bank), and then was transferred to the former Merchants Bank building. Commissioner consisted of the secretariat and the tax office. In order to preserve the unity of the financial and tax policies of the RSFSR Tatnarkomfin was under functional subordination of the RSFSR People's Commissariat. The first provision of Tatnarkomfin was approved at a board meeting of the Commissariat on January 20, 1921 and the Council of People's Commissars TLSSR on February 8, 1921. According to this document, functions of Tatnarkomfin included:

- Drafting a budget of Tatarstan and setting local budget of Tatarstan;

- Preparation of quarterly and annual reports on the execution of the republican budget;

- Control over the statement of accounting in public organizations and financial authorities of Tatarstan;

- The organization collecting government revenue from the socialist economy , taxes from the population ;

- Consideration of complaints and allegations of business organizations and the public on the wrong actions of the financial authorities ;

- The organization of monitoring compliance with all enterprises, institutions and organizations in their assigned states and the salaries , wages and salaries , the development of a master plan administrative expenses and a summary report on these expenditures for the year ;

- Reviewing the annual and quarterly financial plans of enterprises and organizations of agriculture , municipal and housing and other sectors of the economy;

- Conducting performance audits of state and local budgets and checking the use of economic and social organizations of funds released to them on the budget.

The first People's Commissar of Finance of Tatarstan was elected Alexander S. Gordeev. In 1924, he was appointed to the position of Acting Chief of the general management of the RSFSR People's Commissariat.

The first full-fledged budget of Tatarstan was the budget of 1921. In this historic document of interest is only the expenditure side, as revenue covers only 2% of the total flow, this was the guilt of Rosnarkomfin, that  reduced the amount of money claimed.

As a result of the NEP, the opportunity to accumulate capital from the public occurred. This allowed Tatnarkomfin to begin to implement lending operations in the form of state grain and sugar natural loans and cash 6% winning "gold" of the loan. Credit operations have yielded significant revenue to the State treasury. Role of savings banks subordinated to Tatnarkomfin increased (these offices were transferred to the State Bank in 1963). The Soviet government, destroying the financial system of imperial Russia and beginning to rebuild shattered by a country's economy, realized that without strengthening the finances the Stat could not move forward. This is evident from the Lenin’s welcome speech at All-Russian Congress of financial workers, held in October 1923: "The purpose of strengthening the Soviet finance is one of the most difficult ... without its decisions can not be made any significant steps forward in the fencing of independence from Soviet rule of international capital , or in the case of economic and cultural development of the country . "

1930’s – 1950’s

In the 30s, as in all sectors of the economy, in financial institutions, new forms of work organization of financial professionals. Large high-quality execution of budgets of all levels. Also, a clause calling for an increase in the number of employees of financial bodies, bilingual: Russian and Tatar.

It should be noted that the socialist competition in the financial system continued to operate until the 90's. The results of socialist competition regularly covered in the pages of the popular press and the main publication of the financiers of the country - the magazine "Finance of the USSR." The Ministry of Finance of the Republic is often taking top places among the financial authorities of the country. In addition to the large scope of socialist competition among employees of financial innovation were held.

The annual reports of Tatnarkomfin annual reports began to appear Party and government authorities of a significant fulfillment of the plan of revenue collection in the budget. So, in 1936 , the plan 247.4 million, revenue was actually collected by 255.7 million rubles or in excess of the plan by 8.3 million. The expenditure side of the budget has been performed in excess of the plan by 1.0 million rubles. Were completely covered the cost of the national economy and socio- cultural activities, decreased the number of violations after amplification audit activity, rose culture of mass tax collections. The Great Patriotic War was a severe test for the entire economic structure of the country, its budget and the financial system.

The most important event of the postwar period as for the whole country, for the Republic of Tatarstan has become the currency reform and the abolition the card system in December 1947.

In the postwar years, the efforts of the Republican financiers were aimed at finding additional sources of revenues to finance the recovery processes of the civilian branches of the national economy and the increasing costs of social institutions. This was primarily contributed to the production and various government loans given to the population. The financial authorities of the country and the Republic have done hard work to ensure the currency reforms in 1947 and in 1961.

1960’s – 1970’s

In 60-70 years, the financial authorities have greatly increased job control over budget discipline compliance of enterprises, organizations and agencies.

The report of the Ministry of Finance of Tatarstan for 1961 notes that within the staff check course 567 excessive employees and payment of excessive salaries were detected. As a result of this work over a million rubles of state funds were saved.

1990s 2000s

The financial system completed its transition to the treasury form of execution of the republican and local budgets in 1999. One of the features of the Treasury is the unity fund, ie all budgetary funds are collected and spent from a single account in treasury.

Payments crisis was one of the reasons for delays in the payment of wages to employees of companies not only in the economy, but also in budgetary institutions. In many regions and cities, the delay in the payment of salaries to teachers and health workers reached up to 5-6 months in 1997-1998. Municipal budgets were subsidized from the state budget only to the special wage accounts. This granted the correct use of funds. In 1990’s major changes in the structure of budget spending happened. Increased the proportion spent on social services. In 1999, social spending budget has already exceeded 50% of its total.

Critical social sectors such as education, health, culture and social security became the main target of budgetary allocations. As a result, the influence of the state budget to improve the welfare of the poor country significantly increased.

20002007

Employees of the financial system of the Republic of Tatarstan celebrated 80th anniversary of the Ministry of Finance on May 27, 2000.

Execution of the budget in 2001 was carried out in the conditions to improve the socio -economic situation of the country. The main positive trend has been the growth of industrial production, which exceeded the corresponding figures for the majority of subjects of the Russian Federation.

The implementation of the revenue part of local budgets of all districts and cities of the republic ensured in 2001. Also intensified control and economic work with taxpayers to reduce the amounts of arrears.

In 2002 the main focus of financial and economic activities of financial authorities was to improve budget and tax legislation and intergovernmental relations in Tatarstan.

Talking about the fiscal policy, the Russian Federation abolished the tax for the use of roads in 2003. This is the largest change in the structure of Russian budget revenues for all prior periods. The price for the republic was 3 628 billion rubles. In order to compensate the loss of income, an indexation of excise rates and transfer 50% excise tax on petroleum products in the budgets of the subjects of the Russian Federation were provided, the introduction of a regional transportation tax and personal property tax on motor vehicles as well as indexing the land tax and land rent.

Implementation of the federal target program " Socio-economic development of the Republic of Tatarstan for 2001-2006 " as possibility to increase own revenues of the consolidated budget of the republic, and tax transfers to the federal budget. Own incomes increased by 16.3 billion rubles in 2006 up to 73 billion rubles. During the first 9 months of 2007, own revenues of the consolidated budget of Tatarstan amounted to 65.6 billion rubles, an increase versus the same period in 2006 by 25%.

5.7 billion rubles from the federal budget and 5 billion rubles from the republican budget were allocated on the implementation of national projects in the country in 2006. .

Revenues of the consolidated budget of the Republic of Tatarstan for the period from 2004 to 2006 increased from 75.0 to 88.3 billion rubles. Growth of the consolidated revenues of the republic during this period was 118% . During the first 9 months of this year, the share of the funds received from the federal budget revenues of the consolidated budget of the Republic of Tatarstan was 10.6 % or 7.8 billion rubles.

Speaking on local budgets, we can not dwell on the implementation in the Republic of Tatarstan, the Federal Law on the organization of local self-government.

Reform of intergovernmental fiscal relations and local government in the country preceded significant work on regulatory and legal support of the budget process at the national and local level. Basically, all the 20 laws related to the budget process, were developed by the Ministry of Finance of the Republic of Tatarstan .

The Republic of Tatarstan formed 999 municipalities. Each level of government, including municipal, legislative permanently secured revenue sources based budgeting and spending powers. This allowed us to begin to implement all provisions of the 131st Federal Law on Local Self-Government on January 1, 2006.

Naturally, the main task of budgeting - is to ensure a balance between income and expenditure. For this purpose the budget of the Republic of Tatarstan for 2006-2007 established regional funds for financial support of municipal districts.

These achievements became possible with full support of the President and the Government of the Republic of Tatarstan in resolving the most difficult economic and financial issues, as well as everyday work of highly qualified managers and specialists of the Ministry of Finance staff, and municipal finance departments of the republic.

Last updated: 15 July 2021, 09:03

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