Mikhail Mishustin spoke at a State Duma meeting and answered questions from representatives of parliamentary parties after the President nominated him for Prime Minister of the Russian Federation.
Mikhail Mishustin’s answers to deputies’ questions
Mikhail Mishustin’s closing remarks
Mikhail Mishustin’s remarks at a State Duma plenary meeting:
Mr Volodin,
State Duma deputies, colleagues.
State Duma plenary meeting
Mikhail Mishustin and State Duma Speaker Vyacheslav Volodin before the meeting
Mikhail Mishustin’s remarks at a State Duma plenary meeting
Mikhail Mishustin’s remarks at a State Duma plenary meeting
State Duma plenary meeting
State Duma plenary meeting
Only recently, the Government reported on its performance in 2023 and the past four years in general as per the Constitution. Over this period, we have managed to significantly improve the performance of government bodies and coordination of the branches of power, at the federal and regional levels. By doing this, we have built a solid foundation for moving forward and achieving the national goals that the President approved in his Executive Order on his inauguration day, as well as improving the quality of life for our citizens, and shaping an updated architecture of the economy.
Mikhail Mishustin: “I believe that the Presidential Address to the Federal Assembly must serve as the basis for the Government’s work for the next six years. The address outlines the key priorities and a large-scale programme of socioeconomic development that we must implement together, esteemed deputies.”
During the inauguration ceremony, the President stressed that “our state and socio-political system must be strong and resistant to any threats and challenges, ensuring the progressive and stable development, as well as the unity and independence of our country.”
I believe that the Presidential Address to the Federal Assembly must serve as the basis for the Government’s work for the next six years. The address outlines the key priorities and a large-scale programme of socioeconomic development that we must implement together, esteemed deputies – certainly, in cooperation with the Federation Council, the Central Bank, the heads of regions and development institutions, as well as with the public organisations and associations willing to engage in the constructive work for the benefit of the country and our citizens.
Mikhail Mishustin: “We will be focusing on several priority domains to achieve that. The first priority is developing and strengthening the economy. The second one is ensuring our technological sovereignty. The third one is digital transformation. The fourth priority is preserving the population and supporting families with children. The fifth domain is improving our citizens’ wealth. The sixth one is balancing the development of the regions and the nationwide infrastructure.”
We will be focusing on several priority domains to achieve that.
The first priority is developing and strengthening the economy. The second one is ensuring our technological sovereignty. The third one is digital transformation. The fourth priority is preserving the population and supporting families with children. The fifth domain is improving our citizens’ wealth. The sixth one is balancing the development of the regions and the nationwide infrastructure.
Now, allow me to elaborate.
First, the President set a serious goal: Russia must enter the four biggest economies in the world for purchasing-power parity by 2030.
This goal goes beyond increasing the gross output of goods and services. This growth must come with increasing the income standards – certainly, conditioned upon maintaining macroeconomic stability, ensuring our technological and financial sovereignty, and other important issues.
Essentially, it is necessary to unfold a new economic growth model, which the President recently discussed at a meeting with large businesses.
Mikhail Mishustin: “It is necessary to unfold a new economic growth model. What is our plan of action? Mainly, we plan to continue shaping the supply-side economy and create conditions for starting new companies.”
What is our plan of action?
Mainly, we plan to continue shaping the supply-side economy and create conditions for starting new companies. It is necessary to increase industrial production volumes by tens of percent.
These efforts will require additional investment. And we expect that not only the state but also responsible businesses will contribute, including by participating in building long-term resources on the domestic market.
We will also continue supporting the mechanism of project-based and equity financing, as well as improving the appeal of the Russian jurisdiction.
While building production volumes, it is important to remember that new goods need sales markets – not only in Russia but also abroad. We are to increase the exports of non-commodity non-energy products by at least two-thirds. We must increase agricultural exports by 50 percent, as instructed by the President.
I should emphasise that, despite the persisting pressure on our country, we do not plan to impose any restrictions on the foreign businesses that want to keep operating in Russia or plan to come to Russia with new projects. Neither do we intend to restrict opportunities for Russian companies on the international market in any way.
Of course, we prioritise creating favourable conditions for cooperation with friendly countries – within the Union State of Russia and Belarus, the Eurasian Economic Union, the CIS, the SCO and BRICS. We will be developing free-trade agreements with the countries of the Asia-Pacific Region, the Middle East and Africa, and expanding our industrial cooperation, cooperation in science and technology, and launching new joint economic and investment projects.
With this end in view, we will be strengthening transport and logistics infrastructure, including for expanding the transit of goods via international corridors.
It is important to increase labour productivity. The President particularly focused on this matter in his address. There is a dedicated national project currently in progress. We will continue to scale up successful practices and systems, reduce excessive requirements and, of course, support all constructive initiatives coming from businesses.
The SME sector plays a special role. As the President said, it is making an increasingly bigger contribution to the economic growth. The plan is to raise the income level for workers of small and medium-sized companies in the next six years. Income must grow faster than the economy in general. We plan to calibrate well-proven support measures and dedicate resources to developing infrastructure across the regions. Of course, we will stimulate small businesses to enter international markets, among other measures.
The second priority domain is building up our technological sovereignty and developing the production of goods and services that are unique for Russia. This domain is directly related to shaping the supply-side economy.
We are going to implement systemwide support measures across a broad range of products and develop a full cycle of domestic production for complex goods, from research and development to serial production, by using and expanding all the previously developed mechanisms and implementing new ones. They include mechanisms that are part of a cluster investment platform, the Industrial Development Fund, industrial mortgage and subsidies for research and advanced development. I must mention agreements on protecting and facilitating capital investment, and special investment contracts. Thanks to all these agreements, the gross added value of processing industries is expected to increase by 40 percent within six years, as the President instructed. This means thousands of modern production facilities and many new jobs.
Mikhail Mishustin: “Technological sovereignty projects will be launched to strengthen the stability of the entire Russian economy in the long term. The President described these projects in his Address in detail. Now, we are finishing the formative stage of these projects. Colleagues, the preliminary number is nine projects.”
Technological sovereignty projects will be launched to strengthen the stability of the entire Russian economy in the long term. The President described these projects in his address in detail. Each project is dedicated to manufacturing specific lines of high-tech goods based on our own developments, and providing guaranteed demand for critical technology and workforce. The share of Russian high-tech goods and services developed based on our own technology lines, is supposed to increase by 50 percent within six years.
Now, we are finishing the formative stage of these projects. Colleagues, the preliminary number is nine projects. They will concern radio electronics, machine engineering, medical equipment and technology, small-scale chemical production, unmanned aviation systems, space, atom, new energy technology and, most importantly, food security. Some other industries will be covered as well. This is a preliminary number.
Extremely difficult complex work is expected on these projects. It will require vast resources and coordinated efforts. Of course, we count on your overarching support. Implementing them will allow us to work towards reducing imports down to not more than 17 percent of the GDP, a goal set by the President.
We will continue developing cross-cutting and groundbreaking technologies such as artificial intelligence, quantum computing, communications, and many others.
What is extremely important, we will continue updating scientific infrastructure. The President instructed us to double accumulated investment by the state and businesses into research and development by 2030 – and reach the share of 2 percent of GDP. The allocated funds in the amount of more than 1.5 trillion roubles in the three-year budget provide the foundation for achieving this goal.
Third, digital transformation. Colleagues, no industry today can operate without specialised software. Having proprietary electronic platforms in the key sectors, public administration and modern Russian telecommunications infrastructure constitute mandatory conditions for achieving breakthrough results and ensuring the country’s security.
Mikhail Mishustin: “The Government will concentrate its efforts as part of the new national projects on building the data economy, which we will launch at the President’s instruction. We will keep increasing investment into Russian IT solutions at the pace that is at least twice as high as the economic growth rate.”
While dealing with this matter, the Government will concentrate its efforts as part of the new national projects on building the data economy, which we will launch at the President’s instruction. We will keep increasing investment into Russian IT solutions at the pace that is at least twice as high as the economic growth rate, in order to meet the demands of government agencies and companies. Certainly, we need a comprehensive approach to stimulating production and implementing advanced developments that encapsulates all stages, from training workforce and conducting research to releasing and testing prototypes, and increasing the demand for products and services. All these aspects will be taken into account in the new national project.
Colleagues,
A strong economy, technological sovereignty and the wide introduction of innovation will become a solid foundation for Russia’s development, improving the quality of life of people in each region, for further fulfilling our social obligations and, in general, for preserving the population, which is the fourth priority domain of the Government’s further work.
There are about 24.5 million families in Russia, raising a total of 30 million children, and their well-being is what matters most to us. An integrated system of state measures has been created to support a woman through her pregnancy and until her child reaches the age of 17.
Mikhail Mishustin: “We are planning to launch a new national project, Family, an umbrella system for all the most relevant social support mechanisms, which will make the support programmes more targeted and focused on large families. The most important programme is the maternity capital programme that has certainly proven effective. Following the President’s proposal, we will extend the programme until the end of the decade.”
About 3 trillion roubles were allocated to support families in this year’s federal budget that you helped draft.
It is essential that we combine our efforts to improve all social support programmes. We are planning to launch a new national project, Family, an umbrella system for all the most relevant social support mechanisms, which will make the support programmes more targeted and focused on large families. The most important programme is the maternity capital programme that has certainly proven effective. Following the President’s proposal, we will extend the programme until the end of the decade.
The past few years’ procedure has been very straightforward, with families receiving their maternity capital payment automatically once they have a child, without having to file an application. Clearly, parents have limited time for paperwork during this busy period in their lives. So, we have made the procedure as simple as possible. It is quick and does not involve collecting any documents or certificates. This procedure was established after the so-called social treasury principles were introduced under the President’s instruction, to ensure that state support is provided automatically or based on one application.
About 40 federal support measures have been transferred to this format – 42, to be exact. By the end of the year, we will extend it to the remaining measures. In 2025, we will focus on simplifying the procedure for obtaining regional benefits. We have started this work, and the Government recently approved uniform requirements for providing state support at all levels. In fact, we have established a general procedure for interaction between the authorities and citizens regardless of their place of residence, that is, extraterritorially.
I would like to emphasise that listening to people’s opinion and taking their feedback should be of utmost importance to us, as the President always underscores. We need to keep track of how clear and convenient the processes are and adjust them accordingly. At the same time, anyone who wants to apply for the necessary services personally, if they find this option preferable, should still have this option.
Colleagues, we do know that support for families cannot be limited to cash payments and benefits. The Government certainly takes a broader approach.
Housing is another matter of high priority for most families. Many of them use their maternity capital to buy a bigger or better home. Many families also use borrowed capital for this. Therefore, as per the President’s instructions, we will extend the family mortgage programme for another six years, while maintaining its basic parameters.
Until the end of 2030, families who have their third child and subsequent children will still be entitled to a lump sum of 450,000 roubles to pay off their mortgage. The Government has submitted a corresponding bill to the State Duma.
Esteemed deputies, I hope that you will review it in the near future.
Clearly, parents always want the best education for their children because it paves the way for being successful in adult life. Families need to be provided with opportunities to enroll children in modern and well-equipped kindergartens, and then schools. Therefore, we will cooperate with the regions to intensify the renovation and repair of preschools and kindergartens. In communities grappling with the worst shortage of places in kindergartens, we will continue to build new ones, co-financing the projects with federal funds. As the President said in his Address, our priority is to make sure that children learn in a comfortable environment, exploring both arts and sciences, and becoming familiar with new technologies from a very young age.
The new generation will grow to be millions of talented, ambitious and motivated citizens. We certainly need to give them a decent start. And we will definitely give them opportunities for fulfillment as part of the new national project, Youth and Children. It is very important to continue working on it together with the regions.
Regional governments are also active in developing support measures for families and children. They have put forth local initiatives aimed at increasing the birth rate, in addition to the nationwide programmes. In response to the President’s instructions, we will help the regions implement their initiatives, providing additional funds to those regions where the demographic situation is the most problematic. In his Address, the President proposed launching a new comprehensive programme for protecting motherhood and maintaining the health of our children and adolescents. And this work is already underway.
In recent years, we have been active in building medical facilities, supplying thousands of pieces of equipment to them – I spoke about this in detail during my report. But there are certain difficulties that we face. The situation varies not only from region to region; it can also vary dramatically in the same community, where one clinic may be in good condition, with various medical specialists available, and in a clinic across the street, patients have to wait for appointments for a long time, and there is a shortage of equipment.
Much needs to be done to further improve the quality and accessibility of health services. And this can only be achieved through coordinated action at all levels, relying on feedback from patients and the healthcare community.
In the next six years, we need to overhaul the primary care level. This will allow over 7 million more patients to be diagnosed promptly and start treatment. In line with the President’s instructions, we will continue fighting diabetes, cardiovascular disorders, cancer and other diseases.
We will continue to create conditions promoting a healthy and active lifestyle and disease prevention. It is very important to shape a culture of self-care and good health among people of all ages, making physical checkups and regular sports the norm for everyone. Everyone needs to embrace the idea that such self-care is a substantial and useful contribution to their own future. All these measures will be reflected in the new national project.
The fifth priority refers to boosting Russians’ incomes and prosperity. In his Address, the President set two very specific tasks. In the next six years, we are to reduce poverty and ensure that the share of people’s wages in the GDP increases. The Government will make all support measures more targeted. At the same time, higher employment rates, higher flexibility of the labour market and, very importantly, higher wages, should play the key role in this.
Mikhail Mishustin: “Under the President’s instructions, it is essential to create a new model of remuneration for public sector employees – in the pilot regions at first – to later scale it to the whole country.”
Under the President’s instructions, it is essential to create a new model of remuneration for public sector employees – in the pilot regions at first – to later scale it to the whole country. Doctors, teachers and other employees in the social services sector, healthcare, education, culture and science should receive decent remuneration for their work.
We also need long-term mechanisms. In particular, we need to revise the target figures for admission to degree programmes, so that university graduates meet the requirements set by companies, regions and the national economy as a whole. You actually mentioned this during my report.
The demand for blue-collar professions is growing. In response to the President’s instructions, colleges need to train a million workers. I am confident that these people will be the future of our industries – competent specialists familiar with state-of-the-art equipment and the latest techniques. And most importantly, their jobs will always be relevant, which means stable earnings and career opportunities.
The quality of teaching should be improved at all levels of education. Priority 2030, advanced engineering schools, the project to create modern university campuses – these initiatives will contribute to achieving this important goal, and, as I am sure, will have the desired effect.
The sixth point refers to a balanced development of the Russian regions. It is very important to ensure their economic autonomy, to give them reliable tools to improve the quality of life in local communities, to launch relevant initiatives in the social sphere and many other spheres, taking into account the situation in each region and that region’s potential. There are plenty of success examples; we will scale up these practices.
Recently, at a meeting with the President, we discussed individual development programmes for the Russian regions that were falling behind in terms of their socioeconomic development. Over the past four years, most of the ten regions covered by these targeted programmes have reached growth rates that are above the national average. Growth points have been created in each of them to stimulate the economy; they are reaching their targets ahead of schedule. The Government is extending this mechanism for another six years. We have presented proposals to the President to include more regions. We will certainly discuss these plans with you, esteemed deputies, as part of the budget process.
Mikhail Mishustin: “We will also put together a programme for the integrated development of about 2,000 communities across Russia. In particular, in response to the President’s instructions, we will select at least 200 cities and towns and develop a master plan for each of them.”
We will also put together a programme for the integrated development of about 2,000 communities across Russia. In particular, in response to the President’s instructions, we will select at least 200 cities and towns and develop a master plan for each of them. The subsequent implementation of these plans will require joint efforts by the regions, the federal centre, as well as all interested individuals and legal entities. This is the only way to achieve tangible qualitative changes, which the residents will be able to see as they move into better flats, visit new state-of-the-art clinics, and take their children to good new kindergartens conveniently located in their neighbourhoods.
We will also continue to attract investment to the Russian regions, including investment in local infrastructure. As you know, there are mechanisms for that in place. We discussed this in detail at today’s meeting with the parliamentary parties. The most popular tool is budget loans for infrastructure development. We will increase the volume of such loans by at least 250 billion roubles annually. And, importantly, as the regions repay their loans, the money should be channeled into new loans.
The President stressed in his Address that it is necessary to reduce the debt burden on the Russian regions. At the same time, the regions are to direct the resources released after the state writes off two-thirds of their debt, to budget loans for further development – another very important decision – for example, building facilities that are of great importance for local residents. Colleagues, I count on your support in this work. You know better than anybody else what specific projects are more relevant in specific areas.
Housing and utilities services are another important concern that people have. Under the President’s instruction, the Government has prepared a programme to modernise the utilities sector. Allow me to remind you that the amount of funding from all sources will total 4.5 trillion roubles. The huge investment will help improve the quality of utilities services for 40 million Russians, will make people feel comfortable, enjoy warm homes and uninterrupted water and electricity supply.
Mikhail Mishustin: “Under the President’s instruction, the Government has prepared a programme to modernise the utilities sector. The amount of funding from all sources will total 4.5 trillion roubles.”
The next concern is roads. We will certainly continue to repair, build and operate roads across the country. To improve the connectivity across the regions, we will also upgrade at least 75 airports. As you remember, this is another initiative that the President put forth in his Address.
Another priority for the future is the full integration of Russia’s new regions, which means achieving the same level of socioeconomic development as elsewhere in Russia. We will continue to place special emphasis on this.
And of course – I spoke about this in more detail in my performance report – our main responsibility is to support our defenders who are taking part in the special military operation. We will continue to provide them with everything they need – military hardware, weapons, protective equipment, medical kits, and military gear. We will continue to help resolve social issues for the fighters and their families, and will promptly provide them with all social benefits and state support they are entitled to. Taking care of our fighters and their families is certainly the focus of the Government’s attention, and it will continue to be.
Mikhail Mishustin: “Our main responsibility is to support our defenders who are taking part in the special military operation. We will continue to provide them with everything they need – military hardware, weapons, protective equipment, medical kits, and military gear. We will continue to help them resolve social issues.”
Colleagues,
The new administrative model that the Government is using in its work has helped us deal with very serious challenges: first, the coronavirus pandemic, now the sanctions. I have discussed this in detail in my report.
We have been able to achieve this together, in close collaboration between the Government and the State Duma. I would like to thank Vyacheslav Volodin and every one of you, esteemed deputies, for your support and effective cooperation, which has helped us to take the necessary action promptly and make decisions to achieve the goals set by the President.
I hope that this will continue to be the case in the future and that we will maintain this approach.
Vyacheslav Volodin: Thank you, Mr Mishustin.
Colleagues, let us proceed to the discussion of the candidate. Prior to our assembly, Mr Mishustin held private meetings with all the parliamentary parties. Many of them had numerous questions, and he addressed some of them, carrying forward certain issues for consideration.
However, as previously discussed, he will answer some questions publicly, underlining our commitment to transparency and addressing the concerns of our constituents.
With that said, let’s move on to the questions from the parliamentary parties.
Vladimir Kashin (the Communist Party of the Russian Federation): Mr Mishustin, our parliamentary party considers preservation of the rural population as directly correlated with the Comprehensive Development Programme for Rural Areas. Additionally, we address the recent instructions from the President regarding the development of the agro-industrial sector through the second phase of the second virgin lands programme.
Mr Mishustin, under our initial programme spanning four years, there has been nearly 700 billion roubles in underfunding, which puts the majority of performance indicators at risk. Therefore, we urge you to take all necessary measures to ensure that the financing of these programmes adheres to the original plan as outlined in the specifications.
We view technological independence not solely as means to acquire cost-effective agricultural machinery and equipment, but also as a strategy to potentially achieve one and a half to two harvests across most of our country’s territory by mitigating limiting factors for the majority of agricultural crops. To accomplish this, we seek your instructions.
Mikhail Mishustin: Thank you, Mr Kashin.
We delved into this matter extensively during the relevant consultations. Let me summarise briefly. When considering the entirety of funds allocated for rural development and the agro-industrial sector, our funding volume for 2024 amounts to 600 billion roubles. These are significant resources. Of this amount, 68.5 billion roubles are designated for the Comprehensive Development Programme for Rural Areas and 40.7 billion for the land reclamation programme. These allocated funds are poised to be utilised with utmost efficiency.
As for agricultural machinery production, we are actively working on a national project called Technologies for Food Security, as per the President’s instructions. This comprehensive project comprises eight federal initiatives covering various aspects such as selective breeding and genetics in agriculture, ensuring the supply of crucial fodder enzymes, veterinary medication, and achieving technological independence in agricultural engineering, which we have extensively discussed. These programmes are currently in development, and I am confident that, with the ongoing success of the agro-industrial sector and additional revenue, we will consistently invest in and continue to fund all agro-industrial complex programmes.
I have noted your query regarding the virgin lands. We will discuss it when we have a chance and get back to you. Thank you.
Vyacheslav Volodin: Thank you, Mr Mishustin.
The deputies said that the focused efforts on agricultural development have indeed borne fruit. Today, this sector not only guarantees our nation’s food security but also boasts significant export potential, generating revenue surpassing that from arms sales, although we have not reduced the latter.
Hence, I earnestly ask you to uphold this direction as the one of utmost importance. The achievements witnessed across the nation in this domain owe much to the concerted efforts of the relevant ministry and the Government. The Duma boasts considerable expertise in this regard, with people like Vladimir Kashin, who possesses profound insights into these issues, as well as Alexei Gordeyev, Vladimir Plotnikov, and many other colleagues who have directly engaged with rural matters. This collective achievement demands careful nurturing and steadfast support. Let us not fall into complacency under the guise of success; rather, let’s continue to foster and support it.
Now, I give the floor to the LDPR parliamentary party, represented by Andrei Lugovoi.
Andrei Lugovoi (LDPR): Mr Mishustin, many Russians these days do a major part of their shopping online, via vigorously growing marketplaces.
When it comes to conventional retail such as supermarkets or convenience stores, the sellers’ responsibility for the quality of products is clear. As for marketplaces – and their turnover is significantly higher than that of offline shops – they are currently subject to rather vague regulation with respect to the quality of goods, the quality of service and the safety and security of customers.
Hence my question: what are your thoughts on this? Perhaps it’s time to bring some order to the matter and, in fact, create fair conditions?
Mikhail Mishustin: Mr Lugovoi, yours is an extremely important question. I certainly share your concerns.
Ordering goods and services via online platforms, which are often unregulated, is a real challenge for the world in general. We must address this matter. According to different estimates, retail marketplaces boast a turnover of almost 8 trillion roubles, an enormous figure.
Certainly, this industry requires additional regulation to ensure that nobody’s rights are violated. Offline stores operate in accordance with law and, therefore, their operation is transparent while marketplaces, which are essentially digital intermediaries, cause consumers to raise many issues, including frequent changes to terms of sale, restocking fees and other restrictions imposed by sellers. We adopted the fifth anti-monopoly package to regulate these relations. The Federal Anti-Monopoly Service is now authorised to evaluate the network effect to prevent marketplace owners from abusing their dominant status on the market. It is very important that we work together on careful regulation in this area.
Vyacheslav Volodin: Thank you, Mr Mishustin.
I would like to give the floor to A Just Russia For the Truth parliamentary party, represented by Alexander Babakov.
Alexander Babakov (A Just Russia For the Truth): Mr Mishustin, the President issued instructions to outline the priorities of developing science, technology and crucial knowledge-intensive technologies. What is your plan of action here?
Mikhail Mishustin: First, at the President’s instruction, we have already initiated the first steps to shape the priorities of developing science, technology and knowledge-intensive technologies.
Who is involved in this work? Universities engaged in scientific research and the real sector of the economy, including corporations and production companies. In June, we plan to present our proposals to the Council on Science and Education. The proposals will be coordinated with the expert community. I am confident that State Duma deputies will take an active role. The priorities for the next six years will determine where we concentrate our financial and human resources to achieve modernisation, technological development and, most importantly, technological and industrial sovereignty.
We will be reshaping the workforce system in line with these priorities, including the Personnel national project and the co-financing mechanism for research and advanced development. We will reduce the distance and, importantly, ensure the traceability from exploratory research, R&D, where we will invest more funds systemwide – up to 2 percent of the GDP, as you remember – to product samples. The Integrated State Information Repository for Research, Experimental Design Works and Technologies will serve this purpose. We have very serious plans that we will fulfil in collaboration with the Russian Academy of Sciences.
Vyacheslav Volodin: Thank you, Mr Mishustin.
New People, Vladislav Davankov. Please.
Vladislav Davankov (New People): Mr Mishustin.
You have already covered this topic in your remarks. In his Address, the President said that it is important that people do not have to fight to get benefits but instead, benefits must be granted proactively.
Russia is indeed a leader in digital service development. However, when I visited almost every region in January and February (I visited quite many), I spoke to mothers, including mothers of many children, especially parents of children with disabilities. They pointed out that, to obtain benefits, they have to visit several agencies all over their city to collect supporting documents. And benefits can be taken away very easily. For example, receiving 2,000 roubles in a wire transfer from a neighbour may make the welfare recipient ineligible.
My request is, please take a deeper approach to this instruction from the President and get feedback from families, families with many children or from deputies who deal with relevant complaints on a regular basis.
Mikhail Mishustin: As I mentioned earlier, by the end of the year we plan to finalise the creation of a register of citizens in need of social assistance. Primarily, this will streamline the process of assigning necessary social benefits based on data from the register.
What progress have we made so far? I mentioned the transition of all federal benefits, pensions, and other social payments to an integrated one-stop-shop system. Currently, 42 measures have been shifted to the social treasury format, encompassing benefits and payments for citizens, both working and non-working, who have children. These fundamental functionalities are already operational, covering 23 million people, as I can confirm.
If there are any complaints, please inform us through our communication channels.
As you may recall, since 2020, we have been proactively providing maternity capital immediately upon the birth of a child, based on records from the birth registry. Then, from 1 January 2023 (a significant milestone), a new system for delivering measures through the social treasury mechanism was launched. This system provides a unified benefit for families with children and for pregnant women, upon application. If there are any issues with the process, please raise them, and I expect receiving relevant information from you.
Vyacheslav Volodin: Mr Mishustin, we discussed the fact that we met in this room just over a month ago when you presented the results of the previous year.
I must say, the feedback from and the dialogue with the Prime Minister and your office have become much more effective. The questions we raise are being addressed, and this dialogue helps us address many issues.
However, my colleagues have brought up an issue. Of course, they also liaise with the relevant ministries. It is not always easy to establish the same level of contact with the relevant ministries as with the Prime Minister’s office. We regret to say that there have been instances where deputies’ inquiries have gone unanswered, and deputies have been unable to reach some ministers by phone. Isn’t that right, colleagues? Right.
Mikhail Mishustin: Mr Volodin, if someone failed to return a call, even if it was an acting official, we will find out why, today. Please provide a list of those officials who did not return calls.
Vyacheslav Volodin: That would be quite harsh. We did not expect such a strong response from you. However, I want to reiterate: overall, your office is impeccable, and many things have improved. People on your team actively seek solutions, assist deputies, and offer advice. We are working together towards achieving results. Despite your busy schedule, you are always open to dialogue, which parliamentary party leaders frequently praise. However, there are some people who perhaps believe they can avoid communicating with the constituents represented by the deputies.
So, regarding what Mr Davankov said... We have matters concerning the provision of rehabilitation equipment for people with disabilities – an issue that demands extra attention. We recently conferred with the Defenders of the Fatherland Foundation. It’s crucial for the relevant ministry, like yours, to address these concerns. There are also matters concerning motherhood, childhood, and demography. We have discussed these topics extensively, and the chair of the pertinent committee, Nina Ostanina, is very proactive in bringing them up. We hope the ministry recognises its responsibility in these areas. We hope that soon we will have a candidate for the ministerial position. However, why are we raising this matter specifically with the Prime Minister? It’s because we have an established dialogue. Without dialogue, there is no trust, and without trust, there is no progress. Today, you are not just speaking in a personal capacity, but also as someone who will later form the Government. According to the new norms of the Constitution, this is a shared responsibility of the Prime Minister and the State Duma. Hence, it is crucial for us to engage in this conversation with keen interest. I emphasise the need for partnership here, which entails mutual responsibility from both sides.
Now, I give the floor to Viktor Selivyorstov, from the United Russia parliamentary party.
Viktor Selivyorstov (United Russia): Mr Mishustin,
In the past year, the Government approved the Strategy for the Development of the Pharmaceutical Industry until 2030. In your address, you highlighted the Government’s efforts in ensuring technological sovereignty. Considering the sanctions imposed against our country, are there any plans to approve a strategy for developing the medical industry that would take the current situation into account?
Mikhail Mishustin: The issue has many dimensions, and certainly, we need a strategy in some form. Currently, we are executing a comprehensive set of measures to support the medical industry. As I outlined in my report, we have initiated expedited registration processes for medical devices and extended preferential loans to manufacturers via the Industrial Development Fund, allocating approximately 27.5 billion roubles for over a hundred projects. Additionally, we have categorised the most essential medical products as critical industrial items, while imposing restrictions on imported medical products’ participation in government procurement. Furthermore, we have greenlit a roadmap for localising the production of 77 types of medical goods.
There have been numerous support measures in place. Let me provide you with some broader statistics. For instance, in 2023, the share of domestically produced medical goods increased by nearly 2 percent compared to 2022, constituting 30 percent of the overall market for such products. The total worth of medical devices produced in 2023 surpassed 133 billion roubles, marking a 41 percent surge from the 2020 level and approximately 15.4 percent higher than the previous year. These outcomes underscore the effectiveness of our strategic efforts.
I believe that the new national project, New Health Saving Technologies, will further support our efforts. We will consider the necessity of updating and revising the strategy accordingly.
Vyacheslav Volodin: Thank you, Mr Mishustin. Indeed, the federal Government has been actively involved in various projects aimed at modernising healthcare, such as the construction of new hospitals and the substantial provision of medical equipment. However, the most pressing issue right now is the lack of medical professionals. We currently face a deficit of 30,000 doctors. As you will soon be making decisions and proposing a candidate for the position of the Minister of Health, may we direct this question to them? How long do you anticipate it will take to resolve this issue and eliminate the personnel shortage – perhaps a year, two, or three?
Based on this information, we will formulate our perspective. Something needs to be done. The level of support, both from the President and from your office, is indeed significant. Considerable funds are being allocated... We acknowledge that this is primarily the responsibility of the regions, and higher education institutions also bear a share of responsibility here. However, we consistently hear from the public: people visit hospitals with new facilities and installed equipment, but there is not enough personnel to operate them.
Colleagues, what are your thoughts? Do you share this concern? We will prepare for such a discussion, Mr Mishustin, and we are hopeful for your support.
Mr Kolomeitsev, the floor is yours.
Nikolai Kolomeitsev (Communist Party of the Russian Federation): Mr Mishustin,
In your address and report, you emphasised the importance of Russia’s development by bolstering our technological sovereignty, echoing the Presidential Address.
The imposition of 20,000 sanctions and the seizure of our gold and foreign exchange reserves underscore the urgency of disregarding external recommendations on budgetary, tax, and monetary policy.
Are there intentions to revoke the budget rule, discard the tax manoeuvre, nationalise the oil sector similar to countries like Saudi Arabia, establish a state monopoly on alcohol production, and adopt a progressive taxation scale? Would it be wiser to allocate depreciation for its designated purposes?
Mikhail Mishustin: Mr Kolomeitsev, I repeatedly said that the Government has put forth a range of projects geared towards technological sovereignty, emphasising the production of competitive domestic goods. Central to these efforts is fostering our own advancements and research and development initiatives, which serve as the cornerstone for achieving industrial independence.
We are currently implementing a Presidential Executive Order which entails specific instructions across 11 domains to advance corresponding national projects, ranging from production means to automation equipment, transportation mobility, unmanned systems, space, energy, and beyond. Esteemed colleagues, I also count on your assistance, as we deliberate on the legislation pertaining to Russia’s technology policy. This legislation has been crafted with the aim of fortifying technological sovereignty and fostering an environment for the rapid development and adoption of technological innovations.
Regarding the budget policy, characterised as “imposed from the outside”, I can assert with full confidence that this is not the case. Our tax, budget, and monetary policies operate with complete independence. This is the first point I would like to emphasise.
Speaking of abandoning the budget rule and the savings in the National Wealth Fund, Mr Kolomeitsev, there is a nuance to consider. It is akin to giving up on our reserves. It is a delicate matter. I cannot endorse such a move. We have been down this road before, back in the 1990s, when there was a hopeful reliance on Western assistance. Today, I believe, we must not harbour any illusions in that regard. We will have to chart our own course.
The reserves accumulated in the National Wealth Fund have been instrumental in navigating through crises such as those in 2009, 2014, the pandemic, and 2022. In these challenging times, we have utilised funds from the National Wealth Fund to provide crucial budgetary support. Just imagine the complexity of the situation if we had to slash all programmes instead.
As for government borrowing, our debt burden currently stands at the lowest in the world, approximately 17 percent. Debt can be seen as an asset. Consider 2020: the pandemic strikes. Should we have taken on internal debt or not? Without it, we would have depleted the entire National Wealth Fund, leading to economic collapse and significant job losses. By borrowing, we were able to cushion the impact and swiftly repay the debt, with only a minimal decrease in GDP. The following year saw a 6 percent growth. This was possible due to the prudent use of our resources, including the National Wealth Fund, which we did not exhaust. While I fully agree on the importance of technological sovereignty and the need to bolster research and development while reducing imports, I believe our budgetary strategies are balanced and have demonstrated effectiveness during the toughest crises.
Vyacheslav Volodin: Thank you, Mr Mishustin.
Colleagues, replenishing the budget and combatting offshore schemes were, in fact, the issues that Mr Mishustin addressed first when he just took office as the Prime Minister. When he made his remarks, do you remember what he said? Then, his decisions followed. Is that correct, Mr Mishustin?
Mikhail Mishustin: More than 50 countries with which we have denounced treaties…
Vyacheslav Volodin: This is a matter that should be revisited sometimes. Because, a great deal has been achieved, for certain. If you compare the 2020 budget, around 20 trillion…
Mikhail Mishustin: The budget breakdown...
Vyacheslav Volodin: The budget breakdown today is 36 trillion. Can you see the difference?
How much time has passed? Only four years. In just four years, the Government, chaired by Mishustin and led by the President (because the President constantly paid a lot of attention to this matter) took action to the effect that the budget spending breakdown grew from 21 trillion to 36 trillion. Where else have you seen something like that? In these challenging circumstances, amidst the sanctions, threats, the pandemic and the special military operation, we experienced a budget growth. It was achieved without the Government diverting from any standards or obligations. We must thank the Prime Minister and the persons directly involved in making this accomplishment. Colleagues, our conversation must be to the point.
If there are things to praise for, we praise and support. If there are problems, describe them and take up the slack to solve them together. Then it will be completely objective. Kashin can do that. He can lead a balanced dialogue.
Mr Kolomeitsev (addressing Nikolai Kolomeitsev), please learn from your seniors.
Vladimir Koshelev, LDPR, please.
Vladimir Koshelev (LDPR): The President issued instructions to list 2,000 communities for creating their development programmes, and 200 cities for developing their master plans.
Mr Mishustin, do you have a general understanding of what instruments do you plan to use to tackle this problem, including in view of the spatial development goals?
Mikhail Mishustin: This is a very important question.
Without doubt, it is necessary to update the spatial development strategy. We will approve a new strategy this year by all means. Based on the National Spatial Data System that was launched into industrial operation in December, in all regions but a few.
Based on this new strategy, master planning and zoning, we will define the criteria and select these 2,000 communities. Then, we will correlate the infrastructure support instruments with the development programmes of these 2,000 communities and the master plans of the 200 cities, as I said in my opening remarks.
We will monitor the progress via a special digital platform. The key development support instruments will be aggregated in the new Infrastructure for Life national project. It is an infrastructure menu and one of the Government’s initiatives concerning socioeconomic development.
Let me remind you that, as of today, we have allocated 1 trillion roubles in infrastructure budget loans for the next six years. The President issued instructions to build up the infrastructure budget loan portfolio starting 2025, to at least 250 billion per year.
I believe that on these foundations specifically, we will develop the Spatial Development Strategy.
Yana Lantratova (a Just Russia — For Truth deputy): Mr Mishustin,
In considering the budget, MPs can see only generalised information by regions: which amounts are allocated for the construction or renovation of healthcare, educational and other facilities. And we absolutely need to see all of them in the context of the regions: which schools or hospitals are to be built and renovated under the budget plan, which ones are covered by the programme, in what city and at what address. We and our colleagues have an in-depth knowledge of the situation in the constituent entities and which facilities should be prioritised. Sometimes, when I come to a region, I see a school in a state of disrepair, but it was not included in the programme, it had been overlooked. Then we deal with these issues separately.
What do you think about the possibility that at the stage of the budget debate we should discuss not only activities and investments, but also specific facilities for which the funds are earmarked? So that we could discuss it with our constituents and come up with our proposals. This would be an additional element of parliamentary control over the regions.
Mikhail Mishustin: Thank you very much, this is a very important issue.
The Budget Code has been amended which would make it possible for us, I think by June or July, to move from the federal targeted investment programme to a register of federally funded facilities, just what you are talking about. The register is to be submitted, which is very important, to the State Duma alongside with the draft budget to have all management decisions made. And it will contain information on all federal facilities, regional facilities worth more than three billion roubles, facilities with a changed status regardless of their value, and consolidation measures for new regional facilities under three billion roubles. In fact, this is the facility-by-facility picture that you mentioned. The parliament will have full access to the register, thus the issue will be resolved.
Vyacheslav Volodin: Colleagues, let us thank Mr Mishustin. This is an extremely important issue when the parliament will be involved in considering the facilities, which the region promotes at the federal level to have them built and funded. And, of course, then there will be an opportunity to come up with a position, already during the budget debate, either supporting the issue or stating the fact that this is not a priority facility, therefore a different solution is being proposed.
The floor is given to Alexander Dyomin of the New People faction.
Alexander Dyomin (a New People faction deputy): Mr Mishustin,
At the St Petersburg Economic Forum, the President announced a course to creating a supply-side economy. The course implies an increase of production and the service sectors, strengthening the infrastructure network and mastering advanced technologies. Of course, robotisation and upgrade of enterprises will play a critical part in this respect. And our common goal is to raise the living standards of citizens, to provide them with all the necessary goods and services while preserving the quality.
This will require new decisions from the Government in the near future. How do you see the implementation of this strategic task?
Mikhail Mishustin: In brief: Primarily, we need to launch new national projects and move decisively to implementing the renewed national goals. These goals are thoroughly elaborated through 2030 and further to 2036.
We have to rely on the current changes. By the way, despite the increasing pressure, we recorded positive growth of many macro-indicators in the first quarter. GDP in the first quarter was grew by 5.4 percent, industrial output by 5.6 percent, and manufacturing industry by 8.8 percent. The manufacturing industry hardly ever showed such growth before. Construction is up by 3.5 percent, agriculture by about 1.1-1.2 percent, but it is too early to say - we will have these results later. Retail turnover (this is a very important indicator) is 10.5 percent up. Real disposable personal income is 5.9 percent more. And again, the unemployment rate is at a historical low of 2.7 percent. This is the result of the very measures we have talked about in detail.
The key mechanism that you asked about is the development of a proactive and stimulating supply-side economy. We have instructed all the agencies to take all necessary measures. As for the agro-industrial sector, it means preferential lending for building up additional production, and adjusting dampening mechanisms for grain crops. In industry it means all machine tools are, of course, home-made: the Industrial Development Fund for passenger cars, medicines, construction materials and fuel. And in many other areas, too. Tourism is a very important area. It is a huge multiplier. One new job in the tourism industry creates five more, including related services, roads, medical facilities with more and more people wanting to use them. Hence, the number of tourists grows in all these areas.
While supporting the investment activity, we will also take appropriate measures to raise the efficiency of attracting long-term investments, the use of bank capital, and internal investments from our entrepreneurs and development institutions.
Vyacheslav Volodin: Thank you, Mr Mishustin. The final question from the United Russia faction. Ivan Kvitka, go ahead, please.
Ivan Kvitka (a United Russia faction deputy): Mr Mishustin, people must be provided with uninterrupted quality public utilities, this is one of the central tasks of the state. The past heating season revealed problems in this area, the utility networks got outdated and unprepared for operation at low temperatures. The strategy for the construction industry and housing and utilities services in Russia provides for a comprehensive modernisation of such networks by 2030. Judging by the forecast, their annual renovation rate will be at least five percent.
Please, tell us what instruments will be used to achieve these figures.
Mikhail Mishustin: I said in my report that our total investment in this area will amount to 4.5 trillion roubles by 2030. This is the entire programme of the utility infrastructure upgrade from all sources: the federal source providing direct funding from the federal budget; the infrastructure menu, above all infrastructure budget loans; funds released from the regional budget loans, and extra-budgetary sources. The investment of these 4.5 trillion roubles to the industry by 2030 will help us reduce the accident rate by approximately 18.4 percent, replace over 150,000 kilometres of the networks and upgrade more than 3,300 utility facilities.
My colleagues, deputy prime ministers and the relevant minister will report on the programme in greater detail when they are introduced here for appointment by the Duma. The Government is working on it.
Vyacheslav Volodin: Thank you, Mr Mishustin.
The condition of the housing and public utilities is of increasing concern to the deputies, there are a huge number of appeals from citizens. And although it is a responsibility of local self-government authorities at the regional level, we can see now that they will not resolve this problem on their own. Yes, there are a number of regional leaders who address this area. Everything is fine with them, they do not need to be taught, they know themselves what is to be done. But we have a large number of regions where, especially with regard to concessions in heat and water supply, there are a lot of complaints.
Therefore, we need to help the Ministry of Construction and Housing and Utilities to have specialised institutions to solve this problem. And, of course, it must be formalised so that there is a responsible person in charge with a specific full name.
Mr Mishustin, when we were resolving one on such situations, we found out that the supervision of the matter was delegated to different deputy prime ministers and different ministers. And it turned out that one minister is in charge of the central heating main networks and another one is in charge of internal neighbourhood networks. All this bureaucratic system is detrimental. We only have to have one person in charge of the utilities. And although these are regional prerogatives, we need to look at where the regions are failing so that they can be assisted in solving these problems. Because the utilities problem is the problem for each of our residents. It comes to a one’s flat. That is why we hope that you will hear us. This is, if you will, a general directive. We all face such appeals. Right, colleagues? We hope that you will help in solving this issue.
Valery Gartung will ask a question, and we will complete the questions session.
Valery Gartung (a Just Russia — For Truth deputy): Mr Mishustin, given the tasks set by the President, as well as today’s discussion, during which you and everybody else drew attention to the economic growth in the sectors which produce the maximum added value, I will ask, on behalf of the industry leaders, when the Government is being formed, to establish an office of the First Deputy Prime Minister for the deputy prime minister overseeing industry.
Vyacheslav Volodin: Colleagues, considering that these issues are under the jurisdiction of the Prime Minister, Mr Mishustin can answer or refrain from responding. That’s your right. Go ahead, please.
Mikhail Mishustin: I will consult with the President. Thank you.
<…>
Mikhail Mishustin’s closing remarks:
Colleagues,
I would like to thank everyone for approving my nomination for the post of Prime Minister of the Russian Federation.
The elections held in March demonstrated a broad consolidation of society around our President and his course of the country’s development. And despite having different views on many issues, you primarily supported the President’s decision today. You expressed readiness to act to achieve the goals he has set in tandem with the cabinet of ministers, which I will continue to lead. The Government will make every effort to implement the initiatives the President mentioned in his Address, as well as to achieve the updated national development goals.
Esteemed deputies, the format of our interaction has proven effective and I believe it will be right to maintain it in the future.
The issues that were raised during the consultations with representatives of the parliamentary parties, and mentioned by the party leaders in their remarks, will certainly be taken into account as much as possible in the work of the new cabinet.
Mikhail Mishustin: “The Government will make every effort to implement the initiatives the President mentioned in his Address, as well as to achieve the updated national development goals. Strict adherence to the President’s policy will help us succeed in ensuring Russia’s development and Russians’ well-being. I have confidence in this.”
In the coming days, you will approve the new cabinet of ministers. In this regard, I would like to remind you of the values that the Government formulated four years ago.
The key one is to build all state services around the needs of citizens and on the basis of their feedback.
And definitely, the results should be more important than any formal procedures or regulations.
Each member of the Government must be personally responsible for achieving them.
I want to assure you that these values will be essential for guiding the new Government. And strict adherence to the President’s policy will help us succeed in ensuring Russia’s development and Russians’ well-being.
I have confidence in this. Thank you for your trust.
