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Tatar-Bashkir Report: December 8, 1998

8 December 1998
KamAZ Gets Creative In Paying Salaries
Tatar Radio reports that the KamAZ car company paid its workers' November salaries with money, foodstuffs, and services. More than 40 percent of the salary was paid in cash while the rest of it was supplemented with food products and services, which were unspecified. KamAZ management announced that the firm was able to pay full salaries because of increased profits the last three months. In November, KamAZ produced 700 heavy trucks and 1,700 smaller-load vehicles. The increased production and profits made November the company's most successful month in 1998. In December, KamAZ plans to make between 1,000 and 1,200 heavy trucks, a production quota the plant hopes to carry into 1999.

People's Deputy Of TR Warns Of Social Problems In 1999 More than 50 percent of Tatarstan's 1999 draft budget (6.5 billion rubles) is allotted for social services. Some 2 billion rubles will go toward educational programs throughout the republic, with another 2 billion rubles to pay for medicine. Cultural activities will be funded with about 1 billion rubles, while the exact same sum will be spent on youth programs. Referring to the draft budget, A. Shishkin, the deputy minister of finance, said it provided sufficient funds for social programs in Tatarstan. The draft was calculated using average prices from January 1998 with a 30 percent inflation rate factored in. Many parliamentarians in Tatarstan consider this calculation inaccurate considering actual inflation in Russia, which is much higher. On 7 December, deputy Yuri Prokhorov said in an interview on republican television that he believes the lives of state-supported workers will be more difficult in 1999. The Republican State Council is to discuss the draft budget for 1999 on 21 December.

Tax Collection Failing Throughout The Republic
According to the Tatarstan Republic's Tax Inspection (TI) agency, only 44.4 percent of taxes due were collected through October of this year. That leaves some 7 billion rubles in taxes owed to the republican government, an increase of some 31 percent compared to 1997. Currently, some 60 percent of federal and 22 percent of republican taxes remain unpaid. The TI reports that the serious economic situation in the republic is hurting many industrial enterprises and is the main cause of tax arrears.

Kazan Industrial Production Stalled
Kazan Mayor Kamil Iskahkov said at a regular meeting of his administration on 7 December that, in general, industrial production in Kazan increased in November. The Orgsintez chemical plant was the only industry in the capital that experienced a fall in production during the eleventh month. Despite the optimistic reports, industrial production in Kazan this year has fallen slightly compared to the same period in 1997.

Compiled by I. Nurmi