Obama out of spite. The Russian economy has diagnosed the best state in the entire history
Material posted: Publication date: 21-04-2016
Wednesday, April 20, in Moscow has passed the expanded Board of the Ministry of Finance. Besides officials of the Finance Ministry, the meeting was attended by Prime Minister Dmitry Medvedev, the Chairman of the Bank of Russia Elvira Nabiullina, the head of audit chamber Tatyana Golikova, and first Deputy Prime Minister Igor Shuvalov. Medvedev thanked the Ministry staff for service, called them by professionals and handed out awards. As the correspondent "Tapes.ru" watched as officials looked for holes that budget money flow.

Couldn't be better

Key Board financial Department was the performance of the head of the government. In the case of Russia is not as bad as they say evil tongues. "The economy of Russia has repeatedly predicted disaster and destruction, or, as one of my colleagues, the economy will be torn to shreds. But we are directly involved in the economy and understand that no shreds no, there are difficulties," — said the Prime Minister. Thus Dmitry Medvedev has hinted that the words of U.S. President Barack Obama, told Congress in January of last year were exaggerated.

"The Russian economy is much better than in past historical periods — continued the head of government. — We have not given accelerating inflation and stabilized the situation in the labour market". The Prime Minister pointed out that in the current year on the background of large-scale revision of the credit ratings of all raw material countries, estimates of Russia remained unchanged, but scolded the rating agencies for the "extremely negative attitude" towards our country, suggesting that there "is not without its political dimension".

The Prime Minister noted with satisfaction that, despite the new "failure in the oil market", managed to avoid the adjustments budget in January although such a scenario seemed to the Cabinet of Ministers is inevitable.

Noting the coordinated action of the Ministry of Finance and the Central Bank, Medvedev stressed that during the crisis, "the Ministry proved once again effective and highly professional team". The main achievements of Anton Siluanov, according to Dmitry Medvedev, the low level of debt (13.6 percent GDP) and attract 800 billion rubles of borrowings on the domestic market (foreign markets for Russia, alas, closed due to sanctions).

From the speech of Medvedev, it was clear that the Russian economy is feeling much better than predicted "our Western partners". However, budget deficits have to cover it somehow, and to do so at the expense of foreign credits is problematic. To talk about raising taxes, the government does not want, rightly fearing that the already frightened business can eventually go into the shadows. So the rest of the speakers talked mainly about improving efficiency in all spheres, of which are funneling money.

Fake vodka, "one-armed bandits" and retired

The Minister of Finance Anton Siluanov, first assured the audience that his Department an important economic growth. Business representatives and colleagues from the Ministry of economic development has often reproached the Ministry of Finance that the Agency, like the accountant, cares only that the converged debit with credit, while forgetting about the increase in GDP. The Minister rejected all the accusations, putting forward the thesis that the status of the budget and the inflation level critical for the growth of the economy.

Among the areas where the efficiency of the taxpayers ' money is poor, the officer first referred to the system of state programmes, which, he said, "needs to restart". In addition, he prelegislation to end incentives for companies that provide due to the budget. On the ineffectiveness of the preferential system, according to the Minister, said that some enterprises registered in special economic zones, yet changed the registration. If necessary, he said, can provide subsidies. "The goal for this year is to work on assessing the effectiveness of incentives and their impact on economic growth. The results of this work we will present the proposals to abolish these preferences," — said Siluanov. This idea is reminiscent of the plans for monetization, which tried to implement for the Russians in 2005, but — in relation to corporations.

The Minister also proposed to deal with unfair manufacturers of alcohol and made a commitment to drastically reduce illegal sales of alcoholic beverages.


The fight against counterfeit alcohol is one of the ways to solve budget problems. Photo: Vitaly of Ankov / RIA Novosti

Siluanov decided to take the gray business that is still present in the segment of gambling, where "under the guise of lotteries put "armed bandits"". The Finance Minister reminded that the Ministry has already prepared a bill allowing "protricity this activity and to attract to the Treasury revenues, which are now hidden" and expressed the hope that this criminal is still the field will be able to organize. The document has already been submitted to the Duma.

It was not without distressful pension topics. The Foundation of the new system, according to the Minister, should be the responsibility of each Russian citizen for their own old age. Therefore, the Ministry of Finance and the Central Bank to prepare proposals on how to promote voluntary cumulative system, in the near future they will be submitted to the government. This means that all compulsory insurance deductions from salaries will go to pay current retirees, and the budget will have to spend much less to cover the deficit of the Pension Fund of Russia. If a citizen is not satisfied with pension points and will want to accumulate your individual account, real money, he will have to make additional contributions.

Thus, according to the Minister, the formation of pension savings could occur not only in nonstate pension funds, but also through banks and insurance companies.

The Governor of the Bank of Russia Elvira Nabiullina once again echoed the credo of the mega-regulator: the control of inflation. She called the optimal level of price growth for the current year is 4 percent, and expressed concern that inflation may be "stuck" at the level of 6-7 percent. This level of price growth, according to Nabiullina, totally unacceptable because it is higher premium to investors for the risk, and therefore hurt economic growth.

Holes in the regions

The Chairman of the accounts chamber Tatyana Golikova, who worked in the Ministry of Finance to the post of Deputy Minister under Alexei Kudrin, said the greatest spoon of tar in initially optimistic tone of the Board meeting: was called to take disciplinary measures to Federal agencies, allowing non-earmarked spending.

The head of the controlling Agency elaborated on the debts of the Russian regions. According to her, the measures taken in 2014-2015 to reduce the debt burden of the Federation, did not produce any results. The debt of regions is not only not decreased, but rather increased by 1.5 percent and currently amounts to 2 trillion 352 billion. In addition to public debt, which is growing since 2011, 36 regions have commercial debt, and 19 this type of debt is more than half the debt burden. The first quarter of this year ended with a deficit of 50 regions, in the past year, the number was 28.


The Republic of Mordovia — the region one of the top debt loads in the country. Photo: Saransk. Photo: Vladimir Vyatkin / RIA Novosti

Golikova noted that the inefficiency is observed not only in regional borrowing, but also in the system of intergovernmental transfers. "No one monitors what happens to the budgets of subjects of Federation", — said Golikova and proposed to abandon the category of "other interbudgetary transfers", as this article from her office most of the questions to the local authorities.

Stolypin on you no

When the Prime Minister handed out awards to distinguished officials, critically minded Tatyana Golikova received the medal of Stolypin in the first degree. Medvedev drew the attention of the Board that at the beginning of the final report of the Ministry of Finance States its mission and values. "When the Ministry was headed by Alexei Leonidovich [Kudrin], on the mission didn't say" the Prime Minister said.

While Medvedev recalled Kudrin, he said that he was going to become Chairman of the Board of the Center for strategic studies (CSS). "I got the offer, I already agreed. Now there is a approval procedure. In the coming days the Council will convene the CSR. Determined that I come by the Chairman of the Board. Accordingly, the President [of the Centre] will be a different person, what will soon be declared", — explained the former Minister of Finance.


Tatyana Golikova has received from Dmitry Medvedev the Stolypin medal of the first degree (the award was granted 9 February). Photo: Dmitry Astakhov / RIA Novosti

Now, Kudrin's successor — Anton Siluanova — the Ministry finally got the mission and values. The task of the Ministry of Finance is "to promote economic development, improve the quality of employment, equitable distribution of national income, financial stability and national security through the effective and careful management of public finances, the development and improvement of the reliability of the financial system of the Russian Federation". Values of the Ministry are formulated simply: "Faithful service to the state and society, professionalism, openness, efficiency".

Great mission and good values certainly inspire confidence in success. No wonder the Prime Minister said that the current state of the domestic economy much better than in past historical periods.

Gregory Kogan


Source: https://lenta.ru/articles/2016/04/21/minfinkollegia/

Tags: Russia , economy