Russia to support its investors and entrepreneurs

The Russian government discussed amendments for the second reading of the draft budget for 2016 at a meeting on Wednesday. 

"Today we need to decide what kind of amendments will be proposed for the second reading of the government line," Prime Minister Dmitry Medvedev said, speaking at the meeting.

"It is clear that the general characteristics of the budget are strictly determined by our macroeconomic and political conditions. They don't give us much room to maneuver. It is important to ensure correct and efficient use of budgetary funds in such terms. It is necessary to take a decision in order to support key industries, agriculture and regional budgets without intensifying inflation,’’ he added. 

"The main objectives of the budgetary policy remain fulfillment of social commitments, as well as ensuring stability of the financial system and the economy as a whole,’’ the head of government said. 

In addition, Dmitry Medvedev pointed out the necessity to create conditions in order to support investors and entrepreneurs. "In this situation we are trying to do the maximum to maintain investment and entrepreneurial activity,’’ he said.

Senior Research Fellow at the Center for Institutional Development IPEA Yuri Simachev said in an interview with a correspondent of Vestnik Kavkaza that it is enough for investors to continue to support domestic business more actively and efficiently. "I mean, it is necessary to create a favorable business environment in order to reduce the unnecessary administrative burden on business, rationalize various forms of support without distortions in terms of competition. These are basic things. Certainly, we need to continue to develop the activities of the institutions of development and other mechanisms that allow stimulate investment activity in production and high-tech export. But the same basic point is a favorable business climate. It is necessary at all levels, not only at the federal level, but also at local level. It is necessary to realize that entrepreneurship is the key condition for development,’’ he stressed.

The professor of the department of finance, money circulation and credit at RANHiGS Yuri Yudenkov adheres to a similar viewpoint, noting that it is necessary to continue all that is being done now in order to solve this problem, but ‘‘the legislative and regulatory basis should be directed towards protection and taxation to make it fairer and more adequate.’’

Vice-rector at RANHiGS Andrey Margolin noted that ‘‘today's situation in the economy is not the easiest, and the government has managed to created a number of tools in order to support investment activity."

"This is support for small and medium-sized business, as well as the development of non-oil exports and project financing. Today, a significant part of the money invested by the government has not been used yet. I think it is very important to understand this. Perhaps the procedures for receiving state support are excessively bureaucratic. We need to negotiate with those entrepreneurs, who have already received support in order to understand how to move on," he said.