Ekaterinburg Economy Will Start to Recover in 2011

02.06.2009 — News

THE SVERDLOVSK OBLAST.

Ekaterinburg Mayor's Office forecasts a tough period for the municipal budget. The economic situation in the city will continue to deteriorate throughout 2009, stabilization is only expected in 2010, and the first signs of growth in 2011.

The Ekaterinburg Administration informed RusBusinessNews that the 2009 budget revenue will be reduced by 6% to 23.4 billion roubles. A loss of 1.7 billion roubles has been caused by a slump in personal income tax collections caused by the reduction of salaries and continuing layoffs at the city's factories.

Ekaterinburg budget spendings will grow by 3% to 27 billion 537 million roubles thanks to the subsidies from the Federal Treasury. The city authorities have suspended all investment programs and focused their efforts on the current budget liabilities.