The Chairman of the Novogrudok district Executive Committee Mr. Anatoly Markevich noted: In most enterprises and organizations there is a positive dynamics.
— Considerable work is being done to create new jobs. Green energy is gaining momentum. The district has received 5.3 million rubles of profit for five months of 2018, with the cost-effectiveness of sold products – 6.5%. We have completed the planned task for the first half of the year for the housing construction. During the reporting period, there is an increase in retail trade, — said A. Markevich.
– However, there are those economic entities which have unsatisfactory results, – stated the head of the district.
The local authorities paid the greatest attention to the work on value engineering, reduction of stocks of finished products, increase of wages of workers, work with inefficient enterprises. The head of Department of economy of the District Executive Committee Ms.Olga Skoblya informed about the results
Points of growth
— The results of the district’s work in the first half of the year are quite good. 12 out of 14 projections were fulfilled. The volume index in current prices grew steadily and reached 105.9% against a projection of 102.8% for the first half of 2018. In money terms the industry output totaled 158.3 million rubles. The best results showed the joint venture «Leor Plastk» LLC (133.0%). Approximately at the same level worked JSC «Novogrudok gas equipment plant», JSC «Novogrudok factory of special clothing», Branch «Novogrudok Bakery Plant», JSC “Dairy Company “Novogrudok Gifts” and CUE «Novogrudok Combine of consumer services».
There has been a positive development towards the growth in services exports: 113.4% against a projection of the corresponding period last year, without taking into account the organizations of the national level of subordination – 114.0% against a projection for the first half of 101.8%. There has been a positive development towards the growth in transport organizations: 110.7% against a projection of 2017. There was a significant step-up in the growth rate of tourism and other business services: during the current reporting period 255.2% for tourism services and 147.1% for other business services. However, despite the positive dynamics in the growth rate of tourism services, this industry is not developing enough in the area.
Agricultural organizations of the district showed good momentum as well. In the first half of 2018 a growth rate was of 106.4%, including livestock products – 105.4%, crop production – 113.9%.
It was noted that not all agricultural organizations worked well. Such farms, as JSC «Vselyub” (98,9% out of 103.2%), JSC “Gorodechno» (101,2 out of 115,5%), branch “AgroNeman JSC “Lidakhleboproduct” (100.1 out of 103.3%), JSC «Koshelevo-Agro» (95,4%, out of 102.9%) didn’t reach the projections.. The main reason for the non-compliance with projected figures by these organizations was the decline in the production of livestock products.
Contribution to gross regional product
The production sales revenue was 190.8 million rubles which is 110.2% in comparison with the corresponding period of the last year, – said Olga Fedorovna. — In the industry, the revenues made 107.0% in comparison with the corresponding period of 2017, in the construction industry – 96.3%, in the transport industry — 13.4%, in agriculture and forestry — 30.2%, in trade and services – by 8.5%.
The cost-effectiveness of the sold products, works and services shows a negative trend. For the five months of 2018, it was 6.5% against 16.3% to the same period last year, the profitability of sale — 5.6% against 12.9% respectively. Negative profitability has shown by the transport sector – a minus of 4.9%.
According to the results of work for the five months of 2018, 7 district enterprises carried losses.
Dynamics in trade
Compared to last year, there is a dynamic increase in retail trade. In the first half of 2018, retail trade was 109.7%, while the target was 103.8%. During the reporting period, the share of trade organizations in the total turnover of the district amounted to 81.8%, for the same period in 2017 – 78.2%. Today, the share of food items accounts for 63.1%, non-food – 36.9%, for the first half of 2017, 65.3% and 34.7% respectively.
External vector and investments
The district has significantly reduced the results in foreign economic activity. Exports of goods for January-May 2018 amounted to 76.0% (28.4 million USD) to the corresponding level of the previous year and against a projection of 100% for the first half 2018. The main reason for the decline in the volume of exports of goods of the district is the decline in exports of JSC «Milk company Novogrudok Gifts».
Novogrudok manufacturers sell their products in 28 countries. The main trading partner for us is still the Russian Federation, this year the share of deliveries there has decreased. Although there is a constant work on reorientation to other markets of other foreign countries, but this is not enough to achieve the objectives.
In district building organizations, the growth rate of investments increased by 9.6 times for the five months of 2018. Investments of 2473 thousand rubles were attracted, 91.8% of which were construction and installation works. Transport organizations have also attracted the investment by 2.2 times more than in January-May 2017. The result of trade and consumer services organizations, which attracted investments of 124 thousand rubles, which amounted to 186.5% compared to last year, is also noteworthy. The largest share in the investments industry belongs to Novogrudok branch of the Grodno Consumers Union — 64.5%.
Fixed investments in the wind energy region amounted to 11,553 thousand rubles, which is 20 times higher for the corresponding level of last year.
The district also attracts foreign direct investments; there are already 6 proposals for potential investors. In the first half of 2018, foreign direct investment of 606.9 thousand US dollars against the planned of 250 thousand dollars was attracted. The implementation is secured by OOO «Vetrowatt».
The Chairman of the Executive Committee noted that the management of the economy is working ineffectively in attracting investments. Implementation of the indicator is achieved only due to the «green economy» projects. There are no forward-looking ideas. New people in management of economy in the District Executive Committee have to develop new approaches in this direction, – A. M. Markevich summarized.
The task on the level of wages was not fulfilled. The average salary is expected 664,4 rubles, or 92,4% for the first half of 2018. Such branches as industry, agriculture and the budget sector with the largest share of the employees (27%, 20.9% and 28.7%, respectively) influence the level of the district indicator on wage growth. The highest wages are in organizations engaged in financial activities, the lowest-in cultural organizations.
Budget implementation in the first half of 2018 was satisfactory — said the head of the financial Department of the Executive Committee Zhanna Lozovik. The tax collection was good. Revenues of the district budget itself amounted to 17,094.1 thousand rubles, or 100.5% to the planned for the first half and 53.4 to the annual plan. The growth rate was 121.2% against the level of the corresponding period in 2017. The share of own revenues in the budget was 57%.
The main share of tax revenues was formed by income tax (its share – 45.4%), value added tax (13.8%), real estate tax (6.7%), income tax (9.9%), tax under the simplified tax system (5.3%).
During the reporting period, the budget of the district received income grants of 12890,7 thousand rubles from the republican budget.
In total, for the first 6 months of 2018, the consolidated budget of Novogrudok district received revenues of 29984.8 thousand rubles.
Budget expenditures was 28285.5 thousand rubles. Most of the costs (78,2%) were spent on financing the social sphere. As it was noted by the head of the Finance Department, in this situation, the further development of extra-budgetary activities can help. Education and healthcare are showing good results in this area. In the first half of the year culture showed good results in this direction, though it used to be criticized for the shortage of funds from paid services. But the sphere of physical education and sports need to think about the development of paid services. Special attention must be paid to costs saving.
Helen Yermakova, according to the materials of the Executive Committee meeting
Translated by Helen Chal