Agenda: Launching the State System of Electronic Shipping Documents; implementing the federal budget, the budgets of state extra-budgetary funds and implementing state programmes in 2021; easing requirements for IT companies applying for state support; expanding state support for businesses; allocating extra funding to support the agriculture sector.
Mikhail Mishustin’s opening remarks:
Government meeting
Good afternoon, colleagues, The President has instructed us to facilitate a high level of transport connectivity and accessibility all over Russia. The Transport Strategy, adopted by the Government in late 2021, stipulates these goals. Yesterday, the head of state chaired a meeting to expand certain aspects of the transport sector. He noted that businesses are adapting to global economic changes, overhauling production and logistic chains and actively establishing new ties with foreign partners. He underscored the need to create new freight traffic routes. The members of the Government have adopted a decision that will allow business persons to more quickly deliver consignments all over the country, and this is particularly important in current conditions. We have approved all the essential documents. We will launch the State System of Electronic Shipping Documents on 1 September 2022. The System will allow market players to cut out paperwork, tsimplify business processes and reduce costs. It will become possible to deliver goods and consignments more quickly, and enterprises will be able to set up new supply chains. The agenda of today’s Government meeting includes the implementation of the 2021 federal budget. I will dwell briefly on some key aspects. The results were largely predetermined by the Government’s active efforts to support citizens and businesses as per the President’s instructions, by decisions to overcome the social and economic consequences of the pandemic and by implementing measures under national development goals, as stipulated by the head of state. This influenced budgetary indicators and boosted incomes. They exceeded planned levels, stipulated by the law on the budget, by 35 percent and exceeded 25 trillion roubles in absolute terms. Oil and gas export revenues and many other aspects not linked with hydrocarbon fuel sales tended to expand. Although the implementation of large-scale tasks required substantial spending, we ensured a well-balanced budget and fulfilled all social obligations, while providing more targeted assistance, services and benefits. We also quickly implemented new additional support measures. As of the end of 2021, the budget surplus totalled about 525 billion roubles. The Government’s 2021 achievements make it possible to cope with the sanctions challenges now facing Russia.
We will also discuss the execution of the mandatory medical, social and pension insurance funds last year.
Their reserves were used first of all to cover free medical assistance throughout the country. Our hospitals and outpatient clinics were overtaxed because of the coronavirus infection. The situation started changing only recently. But even in that difficult period, people could receive medical treatment at the expense of the state.
Over 2 trillion roubles were allocated to medical facilities in the regions, 25 billion roubles were transferred to help Covid-19 patients, and over 126 billion roubles went to federal medical facilities for the provision of specialty and high-tech medical services. Complicated and expensive operations and life-saving examinations were done even amid the pandemic.
Transfers from the federal Social Insurance Fund were used to pay sick leaves and maternity benefits. Nearly 850 billion roubles were allocated for that.
As for the Pension Fund, last year its reserves were used to pay one-time presidential payments of 10,000 roubles to families with school-age children. These benefits have been transferred to the parents of nearly 21 million children.
Additional support was provided to women in difficult financial circumstances who registered with maternity centres at the early stages of pregnancy. These allocations exceeded 4 billion roubles.
We also started paying benefits to single parents with children aged 8 to 17 years at the initiative of the President. Last year, we allocated nearly 48 billion roubles for this purpose.
We will continue working to maintain the stability of extra-budgetary funds, so that people can receive government assistance on time and in full.
Another issue on our agenda today has to do with the implementation of 45 state programmes last year. Our calculations put their average efficiency at nearly 93 percent, the highest figure for the past three years.
The planned targets of eight state programmes in various sectors have been achieved, notably in nuclear energy, agribusinesses and rural regions, state finance management and employment assistance. We also used many other instruments to finance vital support packages for the people and the economy last year.
We can report substantial over-fulfilment in terms of several indicators. The most important of them for the people is the number of families – over 4 million – which improved their living conditions. The number of households with access to broadband internet has increased by over 11 percent.
The results of the implementation of the majority of other programmes are positive as well.
The next question concerns the IT sector. Following the President’s decision, we are implementing a range of measures to support such companies. In particular, they are exempt from income tax, as well as from tax, currency and other controls for three years. They are entitled to preferential loans - at 3 percent or lower. Their insurance premiums have also been reduced.
Under the current laws, Russian businesses that receive 90 percent of income from IT activities are also entitled to benefits. The amendments that we will consider today propose lowering this threshold to 70 percent, as well as abolishing the requirement for a minimum number of employees.
One more thing, we will expand the list of industries where businesses are entitled to state support. Many companies are waiting for such a decision.
On the President’s instructions, the Government will allocate additional funds to support agriculture.
This decision was made by the head of state following a meeting on the development of Russian agriculture and fisheries in April. The President reminded the participants of the need to ensure the stable operation of enterprises in these industries and to direct funds to preferential short-term and investment loans.
Today, we will allocate more than 153 billion roubles for the implementation of the tasks set; that amount will be channelled to subsidise loans that farmers have taken out previously. The interest rate remains preferential.
These measures will help farms to continue growing, enhancing food security and providing people with high-quality produce.
