The share of revenues that the budget of Yakutia will receive from the oil industry in 2020 will for the first time exceed the share received from the diamond mining industry. This was announced on Wednesday by Prime Minister of the Sakha (Yakutia) Republic Vladimir Solodov at the first reading of the draft regional budget at the plenary meeting of the Yakut State Assembly (Il Tumen).

“This year, Yakutia is experiencing certain difficulties, the revenues of mining companies [the diamond mining industry], primarily ALROSA, are declining. At the same time, we see an increase in revenues from oil and gas companies. For the first time in history, we predict that they will exceed revenues from the diamond mining industry next year,” said Vladimir Solodov.

According to the report of Minister of Finance of Yakutia Valery Zhondorov, 33.7% will fall to the share of the diamond mining industry, 38.6% - to the share of oil companies from the total profit of paying businesses, taxes from which are charged to the republican budget in 2020. In 2019, this share was 42.4% and 29.1%, respectively.

Solodov also noted that the 2020 budget will remain socially oriented. 145 billion rubles, or almost 80% of total expenses, will be social in nature. Payments for payroll liabilities will carried out in full, we do not see any reason for concern here. May decrees will be implemented in full. There will be no laying off in any social sphere of general financing - neither in health care, nor in education. It was decided that agricultural financing will remain at the level not lower than in 2019.”

The bill of the state budget of Yakutia for 2020 and for the planning period for 2021-2022 was adopted in first reading at the State Assembly of the republic on Wednesday. Budget revenues are projected at 179.3 billion rubles in 2020, 187.2 billion in 2021 and 175.9 billion in 2022. Expenditures are estimated at 180.3 billion, 188.2 billion and 176.9 billion rubles, respectively. The deficit is planned at the level of 998 million rubles annually. Financing of regional projects within the national projects is planned in 2020 in the amount of 17.3 billion rubles, in 2021 - 18.9 billion, in 2022 - 8.2 billion.

Yakutia is one of the largest diamond-mining regions in Russia; the largest carat diamond producer in the world operates in the republic. Oil production in Yakutia is carried out by four subsoil users in nine fields.