The situation in the RF economy is complicated but not critical - there are encouraging signs.
The President of the RF, Vladimir Putin, spoke about this in his annual address to the deputies of the Federal Assembly and the citizens of Russia. He discussed the situation in the country and the interior and foreign policy of the state.
In particular, he said that Russia should be ready for the fact that low oil prices and external restrictions may stay in place for a long time. The inflation decrease and national currency stabilization were also outlined.
But it is necessary to change the structure of the economy, with extractive industries playing a major part.
The majority of industry is in the risk zone. Construction, automobile production, railway engineering, and consumer goods manufacturing all need special programs of support. The financial resources for that are being provided. The government is to correct the situation in the economy. The main thing is to create new jobs.
The RF cabinet of ministers is charged with preparing proposals on the creation of a special project office to monitor the most important projects. Besides this, it is necessary to implement an integrated mechanism of payment administration. Russia needs companies capable of both providing the country with modern high quality products and winning on world markets. Such competitive domestic enterprises will be supported by the state.
The federal budget deficit for 2016 must not surpass 3% even if incomes turn out lower than expected. Every budget cycle must be started with fixed priorities, and the role of state programs here should be of a determined nature.
The control of state finance transfers, including federal and regional subsidies, should be significantly stricter. State finances should be transferred only via single treasury accounts. Tax conditions for businesses should be better next year – but for now, the army of controlling entities are preventing businesses from operating.
Last year a capital amnesty was announced, but business is not hurrying to take advantage of it. This means that the procedure is complicated, Putin remarked, and he promised to make it simpler and to prolong the amnesty for another half year.
Putin then suggested providing the regions with the right to lower the profit tax rate to 0% to make investors’ working conditions more appealing.
Russia, in spite of the current complicated conditions, welcomes foreign investors and appreciates their attitude.
“I think the freedom of business is the most important economic and socially significant issue. And we must address this with the expansion of this freedom from all restrictions. I ask all ministries, agencies, departments, governors and heads of all the RF regions to provide all necessary support”, the president stressed.
The federation’s subjects should also have a motive to strengthen their economic foundation, and income growth should not be met with a reduction in federal subsidies.
The RF president also spoke of the necessity for the creation of a special agency for technological developments in order for enterprises to receive help in getting domestic and foreign patents and licenses, and to continue working on import replacement.
He charged the government with preparing proposals for land use by June 1st, and with continuing the maternity program for two years.
He stressed that 800,000 new nursery schools were built in the country and thanked Premier Medvedev for that. Next year, 50bln rubles will be allotted from the federal budget for the construction of new schools, and the reconstruction and repair of school buildings. Besides this, before March the RF government is to work out a methodology for the optimal location of social objects, Vladimir Putin stressed.
