By Vestnik Kavkaza
The Russian government released a plan on taking the Russian economy out of the crisis. Almost $35 billion will be allocated for this. The plan’s fulfillment will take a year; it is aimed at stimulating internal production and supporting small business.
Igor Rudensky, the head of the State Duma Committee for Economic Policy, Innovative Development and Entrepreneurship, says that his committee supports the anti-crisis plan of the government, but it suggests additional measures. First of all, in 2015 support for the real sector of the economy should be provided: “We would like import substitution to develop, i.e. the agricultural and industrial complex, pharmacological support, and production of components.”
“These are directions which should be developed today to support our country economically, our economic growth and to provide citizens with jobs. And of course we need this to prevent a radical growth in food prices and prices for industrial goods. These are the main directions which should be mentioned in all plans which will be worked out by the government,” Rudensky specified.
Speaking about the 17% key interest rate, the MP states that “it will be very difficult to support the level of industrial production of 2014 under such a key interest rate. That’s why a decrease of the interest rate, at least for a short period, is necessary.”
Speaking about inflation, Rudensky notes that to hold it down, “a big complex of measures should be carried out. Support for small and medium-sized business is necessary today. First of all, this includes employment, formation and revenues to local budgets. Our businessmen should feel freer.”
The Committee for Economic Policy intends to update the anti-crisis plan with such innovations as a drastic decrease of the administrative load on business, a reduction in the number of checks and controlling bodies, a more significant decrease of taxes for small business, a system of measures on improvement of availability of loans and an increase in investment activity in the country.
“We need a forced growth of investments in the economy. It is almost impossible to overcome the consequences of low oil prices and the falling ruble, the growth of the key interest rate, prices, and inflation without investments. Special attention should be paid to stimulation of industries and spheres which are engines of socio-economic development of the country and have a significant multiplicative effect,” Rudensky thinks. He also believes that it is necessary to develop strict measures on control over targeted usage of money which will be required by the anti-crisis plan.
