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Separatist Abkhazia Vows to Maintain Social Payments Amid Cuts in Russian Financial Aid
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On September 12, Vladimir Delba, the Deputy Prime Minister and Finance Minister of the separatist Abkhazia, stated that despite the reduction in Russian financial aid, the country will meet its obligations to pay salaries to state employees.
Delba said, “We will, as before, find funds and allocate them to pay salaries. However, this will not happen immediately at the expense of the overall budget system.” He emphasized that measures would be taken to protect the budget, including suspending and postponing capital expenditures while prioritizing social payments. “Social payments are a priority and protected item of expenditure,” Delba mentioned during an interview on radio 'Sputnik Abkhazia.'
Delba also noted that the revenue increase was not due to new taxes or changes in tax rates and benefits but rather to heightened economic activity and an expansion of entrepreneurship within the country. Value-added tax (VAT) remains the leading contributor to the republican budget, as it is the only tax directly funds the budget. Delba described VAT levels as “quite high.”
Additionally, Delba announced progress in automating budget accounting in Abkhazia, stating that this effort would provide better visibility and management of financial assets. “Automation of budget accounting gives us the full opportunity to monitor financial turnovers, payments, and receipts. This is a big step forward,” he said, expressing hope that the initiative would be fully realized by the end of the year.
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