Russia to spend $169m on apartments for officials

Russia to spend $169m on apartments for officials

Since 2009 more than 30 billion rubles ($507 million) have been spent for improvement of living conditions of the government employees.

In the next three years, the Russian government plans to allocate nearly 10 billion rubles ($169 million) from federal treasury for housing for government employees. In 2018-2020 this figure will make 3,16 billion ($60 million), it follows from amendments to the budget draft to the second reading in the State Duma.

As it was explained in the press service of the Ministry of Finance, this money will be spent for subsidies for the officials wishing to get housing. Rules for its granting are established by the government, funds for these purposes have been allocated from the federal budget since 2009. The amendment was approved today by the State Duma Committee for Budget and Taxes, the second reading of the budget in the Duma is planned for November 17.

Now only government employees who have worked no less than three years can apply for the subsidy, it is possible to receive it once during the whole time of service. Besides, another condition is the existence of own living space of less than 15 sq.m per person, in a communal flat or a hostel. The size of a subsidy will be calculated according to the number of members of an official’s family and also the average market value of square meter in different regions. Thus, the capital officials, on average, will receive about 5-6 million rubles ($84-101 thousand) from the budget for the purchase of housing.

The subsidy will be transferred into the bank account of an official, it is possible to spend it either on an acquisition of a ready housing and on a construction of a new. Within a month from the moment of registration of the property right to a new housing the official is obliged to report - to provide an extract from Unified State Register of Taxpayers of rather new real estate.

From 2011 to 2016, 28,07 billion rubles ($474 million) have been allocated for subsidies for government employees, during this time 4997 people received the subsidy. In 2017 3,2 billion rubles ($54 million) were allocated for these purposes from the budget, RBC with reference to Ministry of Construction specifies.

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