the Ministry of Finance of the Russian Federation is going back to the implementation of fiscal rules by 2022. Speaking at the annual Russian conference of investors, said Deputy Finance Minister Alexei Moiseev.
According to him, in countering the spread of coronavirus infection COVID-19 government significantly increased its budget spending to support the economy and citizens that contradicts the current budget rule, according to PRIME.
“We opened all the floodgates on the fiscal side over the last couple of months to support the economy and people who are unable to provide for themselves due to the coronavirus. But all these measures are temporary. The so-called problem of July 1, stands before us in full growth, because most of these measures will be abolished from 1 July. We intend to return to the budget rule to 2022”, — said the Deputy Minister.
the Budget rule suggests that at high oil prices, additional oil and gas revenues are sent to the reserves, but when prices fall — reserved the national welfare Fund (NWF) funds are used to cover the budget deficit. But these costs are also limited, the rule does not involve increasing costs.
Recall that the Russian economy in February—March 2020 was under the powerful impact of two negative factors — the rapid spread of the pandemic coronavirus infection COVID-19 and its deleterious effect on the global economy and collapse in oil prices. Against this background, the rouble significantly depreciated against the dollar and the Euro. Wave of devaluation held from 7 to 9 March and 18 March.
Reacting to the situation, the government and the Bank of Russia has prepared a plan of priority measures for the sustainable development of the economy. As explained by Prime Minister Mikhail Mishustin, “it’s kind of the anti-crisis plan, a set of operational activities that are necessary to ensure sustainable socio-ECnomicheskoj development.” “We will focus on supporting industries that were in a difficult situation, but primarily on the support of the people and providing them with goods of first necessity”, — stressed the head of the Cabinet of Ministers.
In particular, it has been announced vacation credit for small and medium business and people who find themselves in a difficult situation, promised financial assistance to affected industries, provided soft loans, including the payment of salaries, reduced employers ‘ social security contributions, given the postponement of rent and tax payments, excluding VAT, imposed a moratorium on bankruptcy.
Later, it was adopted a second package of economic support measures (soft loans for working capital for strategic enterprises, non-repayable financial assistance to small and medium businesses, including on the issue of salaries and financial assistance to regions and airlines).
for its part, the Central Bank has approved measures to support citizens, the economy and the financial sector in a pandemic COVID-19, and then supplemented them with new packages.
may 11, Russian President Vladimir Putin announced the end of may 12, a single period of days off, entered March 30, in the fight against COVID-19. He also announced the beginning of implementation of the third package of anti-crisis measures, under which the state, in particular, will increase targeted support for families with children, small businesses, individual entrepreneurs and self-employed. In addition, Putin instructed the government to prepare a national plan for long-term development of the economy, the recovery in employment and incomes.
on 27 may, the Minister of economic development (MED) of the Russian Federation Maxim Reshetnikov said that the total cost of anti-crisis measures to support the Russian economy, aimed at combating the impact of the pandemic coronavirus has reached 3.3 trillion rubles.
2 Jun Mishustin has presented to Putin a national plan for the recovery of the Russian economy in 2020-2021 years oeve, in particular, that the cost of the plan will be about 5 trillion rubles.
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