Dmitry Medvedev: "To achieve further growth, we need to focus on priorities and improve the efficiency of public spending. On the other hand, it’s imperative to analyse additional opportunities for raising revenue, including a variety of options, even a tax increase, even though this should be our last resort."
Opening remarks by Dmitry Medvedev:
Meeting on budget projections for 2015 and the 2016-2017 planning period
This is another meeting to discuss the budget for 2015 and the 2016-2017 period. A month ago, we approved key fiscal policies for the upcoming period, the primary budget variables, and the amount of financing going into state and other programmes.
We have held a series of meetings on individual issues, including the social sphere, the manufacturing industry, and infrastructure. I convened this meeting to review several outstanding issues that we need to resolve in order to be able to continue our work.
Eventually, we should form a realistic and balanced budget that includes the current realities in Russia and the global economy, including the negative impact of sanctions against individual Russian companies and, as a matter of fact, the entire country. Clearly, the external borrowing environment is not very good, foreign investments are also questionable. Therefore, we will have to more actively engage in import substitution and support our high-tech industries, including the nuclear industry, aerospace, and others. In any case, no matter what happens, there is no question that we will continue to move forward, implement programmes and projects of national significance. Of course, all of our social commitments will be honoured in full.
Dmitry Medvedev: "We should form a realistic and balanced budget that includes the current realities in Russia and the global economy, including the negative impact of sanctions against individual Russian companies and, as a matter of fact, the entire country."
Our fiscal policy in recent years allowed us to maintain the stability of public finances and limit the impact of so-called external shocks. The lack of a deficit this year and, therefore, the lack of special borrowing needs allows us to ignore the volatility on the financial markets.
However, Russia currently faces additional restrictions and must overcome long-term challenges already at the moment. Clearly, there are two primary ways for us to go – balancing the expenses and revenue, let alone borrowing, which I have already mentioned. Both of these ways are difficult, but they need our attention and require comprehensive solutions.
Dmitry Medvedev: "All of our social commitments will be honoured in full."
To achieve further growth, we need to focus on priorities and improve the efficiency of public spending. This is stating the obvious, it’s a commonplace statement, and we always talk about this during our economic meetings. On the other hand, it’s imperative to analyse additional opportunities for raising revenue, including a variety of options, even a tax increase, even though this should be our last resort.
I’m aware that there are several proposals in this regard. We need to discuss all the pros and cons again, before the final regulatory decisions are taken. We'll talk about this today. Our work continues, and by mid-September we should produce a draft budget that will be submitted to the State Duma.
