Infrastructure needs add pressure on expenditures

The structure of expenditures should remain relatively stable in 2007–2010, as it did in 2002–2006. Subsidies to local budgets are about 50% of total expenditures, followed by expenditures for health care, education, and transport.

Although severe weather conditions result in high labor and construction costs, the krai benefits from an ample supply of electricity at low cost. The administration controls the growth of operating expenditures, and the share of salaries does not increase as a proportion of total expenditures.

Historically, Krasnoyarsk Krai’s share of capital expenditures has been low (10% of total expenditures in 2002–2006), compared with peers. In 2007, however, capital expenditures should increase significantly, to more than 20% of total expenditures. Capital subsidies to lower budgets are at one-third of capital expenditures. Furthermore, we expect these high levels to continue for the next three years. Although the planned increase in capital expenditures provides some flexibility, such flexibility is restricted by the significant investment needs typical of a remote region.

In 2008-2010, the most urgent expenditures will be the purchase of new health care equipment and modernization of hospitals and clinics; while the largest capital expenditure items are road construction, housing construction, and the upgrading of utility networks, followed by support for the agriculture sector.

Budgetary Performance

Five years of improved budgetary performance has boosted Krasnoyarsk’s operating surplus to more than 20% of operating revenues in 2007, from a minor operating deficit in 2002. The balance after capital expenditures has also improved, to a small surplus after capital expenditures in 2007 from an 11.3% deficit of total revenues in 2002. These improvements started in 2003, thanks partly to the current governor’s tough cost controls and his efforts to stabilize tax revenue proceeds. Since then, the krai’s budgetary performance compares well against those of its peers, both national and international.

As the administration intends to continue to control the growth of operating expenditures, Standard & Poor’s forecasts that operating balances will be maintained at slightly above 10% on average in the next three years.

The krai’s significant investment plans will be financed by borrowings. We assume that the deficit after capital expenditures will be below 7% of total expenditures on average in 2008-2010.

Contingent Liabilities

Krasnoyarsk’s involvement in the economy is lower than in other Russian regions such as Bashkortostan and Tatarstan. It owns 56 companies, 32 of which are subsidized, and their debt is included in the krai’s tax supported-debt.

The krai has shares in 32 joint stock companies (JSCs), and provides regular operating subsidies to four of them (all poultry farms), which is a negligible RUR13.5 million, or 0.3% of total expenditures. We expect the krai to continue to subsidize its companies and agricultural JSCs, but this support will not exceed the current level of less than 10% of total expenditures. The companies do not expect any other support from the krai.

There are two midsize companies with debt obligations, but as these are profitable entities and o not need any support, we consider these as a financial reserve of the krai.

www.standardandpoors.com

Текст 10.

Задание 1. Переведите с листа по абзацам на английский язык следующий текст, повторяя перевод предыдущего абзаца, сделанный вашим коллегой.

Задание 2. Передайте как можно ближе к оригиналу содержание текста на английском языке, воспроизведя по памяти как можно больший объем прецизионной информации, заключенной в тексте (без опоры на письменный текст).

ИТОГИ СОЦИАЛЬНО-ЭКОНОМИЧЕСКОГО РАЗВИТИЯ КРАСНОЯРСКОГО КРАЯ В 2009 ГОДУ