PM Approves Socio-Economic Program For 2006-2008
Feb 02, 2006
MOSCOW - Russian Prime Minister Mikhail Fradkov has approved a program for Russia’s socio-economic development in 2006-2008. He also approved the government’s action plan to implement the program in 2006.
Ministers and the heads of government departments will bear personal responsibility for the performance of the program. The Economy Ministry will make monthly reports to the government on the program implementation.
The program was approved by the government on December 29. It is designed to reduce inflation and support macroeconomic stability.
Proposed measures to curb inflation include the creation of conditions to stimulate trade in oil products on commodity exchanges, developing financial institutes and instruments allowing people to invest in government and corporate securities, establishing rules for control of tariffs for communal services, improving the mechanism of VAT calculation and payment, and reducing excise duties on high quality fuel.
Provided that the Russian economy continues growing and the budget system remains balanced over the next few years, the program suggests cutting VAT to 13 percent. Lower VAT rates will boost the country’s economic growth, contributing to the development of hi-tech sectors and stimulating capital investment, the document says. VAT is currently charged at 18 percent in Russia.
The program also includes measures to support exporters, increase the Stabilization Fund and Investment Fund and create the Innovation Fund.
Ministers and the heads of government departments will bear personal responsibility for the performance of the program. The Economy Ministry will make monthly reports to the government on the program implementation.
The program was approved by the government on December 29. It is designed to reduce inflation and support macroeconomic stability.
Proposed measures to curb inflation include the creation of conditions to stimulate trade in oil products on commodity exchanges, developing financial institutes and instruments allowing people to invest in government and corporate securities, establishing rules for control of tariffs for communal services, improving the mechanism of VAT calculation and payment, and reducing excise duties on high quality fuel.
Provided that the Russian economy continues growing and the budget system remains balanced over the next few years, the program suggests cutting VAT to 13 percent. Lower VAT rates will boost the country’s economic growth, contributing to the development of hi-tech sectors and stimulating capital investment, the document says. VAT is currently charged at 18 percent in Russia.
The program also includes measures to support exporters, increase the Stabilization Fund and Investment Fund and create the Innovation Fund.