Features of «infrastructure menu» credit instruments and their potential impact on budget situation in Russian regions

Abstract

The article presents an analysis of the law regulation and regional distribution of funds provided within the framework of the „infrastructure menu“ instruments – additional measures of state support for infrastructure development in the regions of Russia. Two instruments are considered in detail – restructuring of budget loans and the issuance of infrastructure budget loans for regions. The emphasis is placed on the analysis of the principles of providing support and allocation funds by region, as well as on possible aspects of the potential impact of these instruments on the budgetary situation in the subjects of the Russian Federation. It is revealed that the regulated rules for the implementation of the analyzed instruments poorly take into account the real needs of the regions in funds for infrastructure development. The delayed nature of the start of repayment of the main part of budget loans (from 2025) and the restrictions on debt policy laid down in the regulatory framework for the regions create longterm risks of fiscal sustainability for most territories due to a sharp increase in debt servicing costs and probable shortfall of income from ongoing projects against the background of sanctions pressure. The article shows that mechanisms of the „infrastructure menu“ can play the most significant role only for relatively populated, but less developed territories that previously did not have sufficient budget funds for the implementation of large infrastructure projects – the Rostov and Vladimir oblasts, Republic of Daghestan, Altai kray, etc.