Agenda: the programme for the socioeconomic development of the new regions, special treasury loans for the regions to implement infrastructure projects, support for agricultural sciences, modernisation of agriculture research institutes and a long-term savings for the public programme.
Government meeting
Government meeting
Anton Siluanov’s report on launching a long-term savings for the public programme
Government meeting
Excerpts from the transcript:
Mikhail Mishustin: Good afternoon, colleagues.
Before turning to our agenda, I would like to talk about important measures on developing four new regions – the Donetsk and Lugansk people’s republics, and the Zaporozhye and Kherson regions.
The President has set the goal of integrating these regions into our country’s economic, legal and education space as soon as possible and bringing them to the national average on all indicators in the next eight years. To reach these goals, the Government has drafted and adopted a long-term programme for the socioeconomic development of these Russian regions.
To implement this programme, we are planning to restart the operation of key industries and companies, restore production funds, and in general, create conditions for further growth and, most importantly, for improving the wellbeing of the citizens and protecting their rights. We will have to build their systems of healthcare, education, social protection, culture and sports almost from scratch. We have already adopted a number of important legislative acts. Now we need to consistently fulfil the planned undertakings to make the new regions part of the entire country.
Now I will tell you about another decision designed to support the Russian regions.
We have continued to implement the programme of infrastructure budget loans. Now it is one of the most effective instruments for the development of the regions.
Last year, we distributed 1 trillion roubles among the majority of the regions for infrastructure projects in social, utility, transport and other areas. At the beginning of this year, the President signed a law that envisions the size of these loans and the procedure for issuing them.
The Government has endorsed the rules for granting the regions budget loans at 3 percent interest for a term of 15 years. We will allocate 190 billion roubles for this purpose. They will spend a big portion of these funds for restoring utility networks and communications, and for converting boilers from fuel oil to bio fuel in the Northwestern and Far Eastern federal districts. About 50 billion roubles will be spent on upgrading public transport. The new regions of the Russian Federation will be now able to use these loans as well.
This instrument will provide the regions with additional funds for creating comfortable conditions for their people and improving their living standards.
Today’s agenda includes an item on supporting agricultural sciences. The President emphasised the importance of creating our own selection and genetic reserve. Last summer, we transferred many research institutes to the Ministry of Agriculture. They are developing Russian varieties of agricultural crops and domestic animal husbandry breeds. They are also developing and producing veterinary medications.
Our agrarians have a need for such solutions because unfriendly countries have imposed restrictions on them like they have on other businesses. At the same time, the funds of these research institutes have largely become outdated, which may prevent them from promptly meeting the requests of agrarians. So, the Government will provide them with additional support.
We will transfer $2 billion roubles for the comprehensive re-equipping of 11 research institutes working in the biology industry, poultry breeding and seed production. This will allow them to update their instruments, purchase modern equipment and specialised machinery and educate highly qualified professionals in these areas.
We hope these measures will help maintain sustainable indicators in food security and maintain the competitive ability of our agribusiness in general due to the enhanced technological sovereignty.
On the President’s instructions, the Government has drafted amendments to legislation that are required for launching a new long-term savings for the public programme. It will allow people to receive additional income in the future and create for themselves a financial safety cushion.
People will be able to sign a contract with a non-government pension fund and invest in it their previous pension savings or transfer to it individual contribution accounts. The state will co-finance them during the first three years, that is, adding to them up to 36,000 roubles per year. People will be able to use their savings after a certain period of participation in the programme or after retirement.
Importantly, these savings will be protected. The system of guarantees is the same as for bank deposits, but the insurance amount is twice as much – 2.8 million roubles.
Mr Siluanov, please tell us about this draft law in more detail.
Anton Siluanov: Mr Mishustin, colleagues.
Indeed, we have prepared a draft law on launching this long-term savings for the public programme. The new programme will allow people without special investment knowledge to create long-term savings and further invest them in financial instruments. Importantly, these instruments are reliable and the investments will be properly monitored. In the mid-term perspective, these investments will produce more money than deposits in commercial banks.
Participation in the programme is voluntary. People will build long-term savings themselves through their own deposits and also by using their previous pension savings. Moreover, their employers may also contribute funds under this programme. People can start saving money from the age of 18 by signing a contract with a non-government pension fund for this purpose. They will determine the size and frequency of these deposits themselves.
The state will co-finance the deposits for those that enter the programme in the first three years. The state’s co-financing can amount to 36,000 roubles per year during the first three years of enrolment in the programme.
The state guarantees the security of the deposits. They will be insured for 2.8 million roubles, which is twice the amount for bank deposits. People will be able to receive the money without losing income in special situations – for an expensive medical treatment or other important needs.
The savings under the programme will be inherited fully minus the paid amounts. This long-term savings programme will create an additional incentive for the growth of savings and long term money in the economy, which we need.
I would like to ask you to support this draft law.
Mikhail Mishustin: Thank you, Mr Siluanov. I would like to ask you to take the review of the draft law under your personal control and to provide assistance to our parliamentarians.
The main point is that this new financial instrument should allow our citizens to save additional money for pensions or for special situations.
