FAIP is spent a quarter faster in 2020

The Ministry of Economy disclosed information on the results of financing the Federal Targeted Investment Program (FAIP) and spending budgetary allocations within the framework of federal target programs (FTP) for the first three quarters of 2020. Based on the ministry’s figures, at least in the open part of the budget, state investments in 2020 are being mastered faster than in 2019 – the “budget overhang” in this part for the first time in many years may be significantly less.

The total expenditures of FAIP (recall, these are direct state investments in the creation of objects, mainly real estate – from defense and road to medical) in 2020 in the federal budget amount to 984.1 billion rubles – these data are contained in the statement of the Ministry of Economy, which was reviewed by Kommersant ”. The total expenditures of twenty civil FTP in their open part and four in the closed part should amount to 456.1 billion rubles, the costs of capital investment programs are included in the FAIP (this is 245.6 billion rubles), out of 1452 objects of the FAIP, 486 are implemented within the framework of national projects. The largest areas of FAIP this year are road facilities (203 billion rubles), work on the state defense order (163.2 billion rubles), healthcare (118.7 billion rubles) and sea transport (92.5 billion rubles).

The cash execution of the entire FAIP (with the capex of the federal target program) for the first three quarters of 2020 was, according to the calculations of the Ministry of Economy, 54% versus 39.5% for the same period in 2019.

This is a rather unexpected and positive result for such a difficult year – recall that, at least in some regions, the epidemic led to problems with logistics, they introduced lockdowns affecting the construction industry, albeit to a limited extent. In comparison with the increase in the rate of development of the FAIP by a quarter of the funds of the federal target program (the Ministry of Economy also considers them with capital expenditures), they were mastered a little worse, but also better than 2019 – they were executed by 41.4% in three quarters, at the end of September last year the figure was 35.9 %.

It should be reminded that in the performance of the federal target program and the FAIP, for the entire period of their existence in the budgetary structure, the “seasonality” of the disbursement of funds is traditionally extremely high, it was somewhat softened by the possibilities of long-term contracting of state structures introduced several years ago. Nevertheless, the FAIP made a significant contribution to the formation of a “budget overhang” – a wave of feverish use of state investments in November-December. The figures given by the Ministry of Economy show that the “overhang” this year may be less.

The sectoral breakdown of the FAIP cash execution demonstrates at the same time that we can no longer talk about administrative barriers in the development of investments as such.
A number of large departments and the main administrators of budgetary funds (GRBS, the largest among them in the lists of FAIP participants – the Ministry of Industry and Trade, the Ministry of Energy, the Ministry of Natural Resources, the Ministry of Digital Industry and, which was previously poorly imagined, the Ministry of Defense) have mastered more than 80% of planned investments in three quarters. In turn, the development of these investments by part of the GRBS is less than 20%: the lists traditionally include law enforcement agencies (Rosgvardia, FSIN), the Supreme Court, Rosarkhiv and the Ministry of Education (here the problem may be co-financing of objects by the regions). Zero development of FAIP, according to the Ministry of Economy, as of October 1, was demonstrated by Rostransnadzor, Rosimushchestvo and the State Courier Service – but the share of their investments is small.

Based on the data of the Ministry of Economics, a more stable use of GRBS funds does not lead to the “removal of seasonality” in the delivery of facilities to FAIP. In 2020 (excluding the objects of the state defense order), 326 objects should be put into operation – and 64 objects of the FAIP, which were supposed to be built on time in 2019. For three quarters of 2020, 34 facilities were commissioned as planned, or about 10% of what was expected, for the most part these are projects outside the FTP. Of the “expired” objects of the FAIP, 15 were put into operation in 2020 – documents are being processed for nine built, work continues for forty, “unfinished” is evenly distributed across all GRBS. The reasons why it is necessary to hand over objects in the last quarter of the year is a question for state builders; however, exactly the same seasonality has been observed for many years among private investors in construction projects.

Source: Kommersant