Mikhail Mishustin took part in the board meeting on the Finance Ministry’s performance and new objectives.
Mikhail Mishustin’s opening remarks
Report by Finance Minister Anton Siluanov
Before the meeting, the Prime Minister toured the Russia National Centre and the Travel Around Russia exhibition.
Excerpt from the transcript:
Mikhail Mishustin speaks at an expanded meeting of the Finance Ministry Board
Mikhail Mishustin tours the Travel Around Russia art gallery. With Dmitry Grigorenko, Finance Minister Anton Siluanov and Central Bank Governor Elvira Nabiullina
Mikhail Mishustin tours the Travel Around Russia art gallery. With Finance Minister Anton Siluanov and Central Bank Governor Elvira Nabiullina
Mikhail Mishustin tours the Travel Around Russia art gallery
Mikhail Mishustin tours the Travel Around Russia art gallery
Mikhail Mishustin tours the Travel Around Russia art gallery
Mikhail Mishustin tours the Travel Around Russia art gallery
Mikhail Mishustin tours the Travel Around Russia art gallery
Finance Minister Anton Siluanov at an expanded meeting of the Finance Ministry Board
Mikhail Mishustin speaks at an expanded meeting of the Finance Ministry Board
Mikhail Mishustin: Mr Siluanov, colleagues,
I am glad to greet you all at this meeting.
We have just toured the Russia National Centre and the Travel Around Russia interactive exhibition that is a logical extension of the major expo that took place recently at VDNKh at the President’s instruction and hosted over 18 million visitors, including from abroad. Our guests were extremely interested in Russia’s biggest achievements and the achievements of all our regions. We truly have something to be proud of. Thousands of various events took place during the expo. The new national centre is a continuation of this expo that will be running here from now on.
As we have seen today, this venue is a showcase for the cultural and natural wealth of our federal districts. There is room for technology, innovation and achievements that our country has made and created in the past decades.
These expos help visitors and, most importantly, young visitors, realise the scale and might of Russia, its potential and the opportunities that every citizen as well as regions and businesses have. Guests discover new names, goods and services, and new tech solutions developed across the country. One can learn about all this here, in the centre of Moscow.
This venue also serves as a platform for important state and public events for youth and the older generation, for volunteers and entrepreneurs, cultural workers and innovators — and, of course, those who are defending their country today and those who love their Motherland. It means that ambitious people from across regions can meet each other here more often, and ideas, practices and developments can be more actively implemented, which will facilitate the country’s long-term development.
The fact that the Finance Ministry, one of the key Russian ministries, decided to hold an expanded board meeting at the National Centre, only confirms the importance of this exhibition and supports this attitude.
For the first time, this board meets in the format of a strategic session used by the Government to develop balanced decisions. Finance Ministry staff are most actively involved. This format implies participation of not only representatives of competent agencies but also experts with a broad range of knowledge and skills, including entrepreneurs and businesspeople, researchers and public figures. This helps discover and consider more nuances during the preparation stage and make respective measures more effective.
I believe today’s meeting has also been highly productive. Most importantly, it is focused on the practical implementation of the ideas under discussion, on formulating responses to the key challenges facing the financial sector over the next six years, including in the context of achieving the national goals set by the President. This is crucial for analysing long-term trends. Many of the President’s directives are laying the groundwork for how our country will approach the middle of this century.
In the coming years, we face a new set of complex tasks – not only in the social sphere, but also in ensuring technological leadership across a number of critical areas and in building a truly strong, independent industrial base.
This, in turn, must lead to further qualitative growth in the standard of living of our citizens. That means even greater responsibility will rest on the shoulders of all employees of the Finance Ministry.
First and foremost, this concerns the critical area of ensuring financial stability. Last year, fiscal policy remained primarily focused on supporting structural transformation. Additional resources were channelled as a priority into social support for citizens, strengthening national defence, technological development and infrastructure expansion. As a result, the economy continued to grow at a fairly robust pace.
According to revised figures, GDP grew by 4.3 percent. This is more than in 2023, which was also strong. In any event, it significantly outpaced the growth seen in countries that imposed sanctions against Russia.
This growth led to an increase in jobs and investment, while the budget deficit remained within planned limits, and the national debt as a share of GDP even declined.
These results are due in large part to a consistent and responsible approach to fiscal policy in recent years, as well as the professionalism of your ministry’s leadership and staff, as well as the country’s broader financial sector.
Higher revenues also made it possible to expand support measures. Last year alone, nearly 8 trillion roubles from the federal budget were allocated to social policy. Monthly benefits and allowances, pensions and maternity capital were all indexed.
We have improved housing conditions for over 4 million families and built almost 300 new schools.
As part of addressing the tasks of technological leadership and the development of the agro-industrial complex, initiatives for small and medium businesses were encouraged and significantly expanded. We discussed this in detail during our visit to the exhibition at VEB.RF’s Project Finance Factory. We have also been developing transport infrastructure.
On the President’s instructions, a long-term financial plan until 2030 has been prepared. It establishes a framework for allocating resources to achieve national goals. The funding designated for national projects alone amounts to nearly 41 trillion roubles – approximately equivalent to the country’s entire annual budget.
At the same time, there are plans to further reduce the non-oil and gas budget deficit and to boost revenues from sources unrelated to energy exports. This will help contain inflationary pressures and strengthen our financial sovereignty in the medium term, among other things.
It is important to focus on measures to prevent budget risks and maintain macroeconomic stability. Resilience to external challenges caused by various scenarios of global economic destabilisation is a key indicator and also the result of responsible public policy and the ability to fulfil obligations. Of course, we must be prepared for changes and develop different scenarios, taking into account the market situation.
Colleagues,
Last year, we defined the parameters of the tax system. We created conditions for entrepreneurs to adapt by forming a mechanism to encourage development. We stimulated investment by providing appropriate deductions and linking preferences with obligations under new projects. Additionally, we strengthened the finances of regions and municipalities.
In accordance with the President’s address, taxation must remain unchanged in the future. This is an important factor in creating a comfortable business climate in the country. Yesterday, we had an in-depth discussion of this at the Government’s strategic session.
Supporting participants in the special military operation and their family members, including in terms of taxes, is another important area. Ensuring the well-being of Russia's defenders and their families is an absolute priority for us.
A wide range of measures is in already effect. However, not all property tax benefits are established at the federal level. Regional and local benefits are not available in all regions, and even where they exist, they are applied in different ways.
I believe it would be appropriate to introduce nationwide property tax benefits for our soldiers and their families.
We need to further the development of the country’s financial system. Our key tasks, defined by the President and formulated as national goals, include an increase in Russians’ long-term savings accounts to 40 percent of total balance.
Last year, a long-term savings programme was launched, with state guarantees of greater protection and other incentives. Bank clients signed about 3 million agreements under this programme in 2024. The funds raised are estimated at about 200 billion roubles. This approach also gave people an additional source of income.
Furthermore, new tools need to be developed this year and in the medium term. We need to facilitate initial public offering by companies co-owned with the state – we have also discussed this in detail – and the circulation of their subsidiaries and affiliates’ securities on the market. We also need to create favourable conditions for attracting foreign investment.
Mechanisms are being worked out to support and stimulate technology companies to enter the equity market.
Colleagues,
It is important for us to make active progress, creating new incentives for domestic companies and launching projects enabled by advanced technology. We need to support domestic innovation to achieve the national goals set by the President until 2030, to improve people’s lives and strengthen and empower the Russian economy.
I hope that more ideas and proposals will be developed at today’s meeting, to achieve the objectives that the head of state has set for us.
I would like to thank you for inviting me to this meeting, and I will be happy to listen to the Finance Minister’s report.
Anton Siluanov: Good afternoon, colleagues. Mr Mishustin,
We appreciate you taking the time to attend our meeting dedicated to last year’s performance results. Today, we will also outline our plans for the current year and for the next five years.
It is an unusual board meeting because we are reviewing the results of the Finance Ministry’s performance over the past five years. We will consider what has been done, what has been accomplished, and what needs to be worked on. We will set our goals for the next five-year period. We see this as part of the Government’s mission to improve the quality of life for every citizen. We will review the Finance Ministry’s contribution to achieving this goal.
The main role of public finance, and of the nation’s financial system, is redistribution of resources. Public finance and budgets refer to the distribution of national revenues between industries, branches of the economy, and among various groups of citizens. Accordingly, the Finance Ministry’s job is to regulate the distribution of finances in such a way as to ensure growth, improve the quality of life and people’s well-being. This must be done professionally and transparently, while achieving specific results. This aligns with the Finance Ministry’s values, which have been identified as one of our key tasks.
This is a fine art, for measure and balance are required in all things. The Ministry of Finance shoulders the immense responsibility of striking this delicate equilibrium. History abounds with examples where financial disorder has brought down entire states. Conversely, financial stability and public trust in fiscal systems drive economic development and enhance citizens’ prosperity. Confidence in financial policy determines the wellbeing of our people, shapes business sentiment and ultimately underpins state security.
In the first part of this expanded board meeting, we reviewed the Finance Ministry’s performance. I will highlight the key points.
The world has undergone radical transformations during this period. We examined a five-year span in which we repeatedly confronted epidemics, geopolitical challenges, and trade conflicts – all directly impacting our nation, its budget, and financial system.
Despite these pressures, the situation is now under control: the budget is balanced, public debt stands at low levels, and the financial system remains robust. Temptations have arisen, of course. Each budget has been hard-won, with unfunded financing requests far exceeding our capacity. Together with the Government – Mr Mishustin and colleagues – we scrutinised each proposal, assessing its economic contribution, potential to improve living standards, and alignment with available resources to determine priorities. This is an immensely complex yet vital task.
At times, unpopular but necessary decisions proved unavoidable. Crafting a balanced budget is an art – one whose outcomes inevitably leave some dissatisfied. The Ministry of Finance often earns little affection for rejecting new expenditure proposals.
Yet we all understand clearly that preserving fiscal health is the cornerstone of prosperity. While robust public finances may not yield immediate results, our steady progress over these five years has seen Russia’s economy rise to fourth globally – surpassing Germany and Japan to trail China, the United States, and India – and join the ranks of high-income nations. This, too, holds profound significance.
Crucially, the past five years have enabled us to not merely retain stability but to solve vital structural tasks.
Budgeting. Every rouble of expenditure is tied to specific outcomes, a principle receiving our utmost attention. Mr Grigorenko’s commission ensures decisions align with state programmes, national projects, and tangible results within set timelines – all subject to rigorous oversight.
Tax Policy. The system has grown fairer through revised extraction levies and increased progressivity. Tax and duty payments now prove more convenient, achievable through just a few clicks.
Public Procurement. Fully digitised, transparent procedures have enhanced competition for business development, including small-sized enterprises.
Mortgages. Since 2019, approximately 4 million families have improved housing conditions. The mortgage-purchased housing share has risen from 59 to 83 percent, while annual mortgage-funded construction surged 35 percent to nearly 24 million square metres. Apartment purchases can now be completed online from home.
Social Policy. Support has become more targeted. Outreach for those in need. A new system assisting families with children now covers over 10 million recipients. Notably, we have integrated tax expenditures into social policy: from next year, low-income families will receive rebates based on current-year earnings data.
Conclusion. The past five years mark a challenging chapter in our nation’s history. Yet we have navigated it with dignity – averting the financial recklessness of the 1990s and, most importantly, securing a 20 percent rise in real disposable incomes over this period. This is no small achievement.
In the second part of the board meeting, we determined the Finance Ministry’s tasks by the key areas of its activity through 2030.
The main objective of the budget policy, which Mr Mishustin mentioned in his remarks, is the financial provision for the national development goals set by the President. Their implementation is the basis for improving the quality of citizens' life.
A prospective financial plan has been drafted for 2025–2030. It envisages more than 40 trillion roubles for implementing national projects. This is twice as much as in the previous six-year period. Moreover, all the priorities have been placed within the budgetary framework secured with resources. The money was found through revenues from economic growth, maneuvering within the expenditure part of the budget, as well as the tax adjustments adopted last year.
Tax innovations sought not so much even fiscal goals; tax innovations followed the request of society for justice.
Now, in general, the structure of the budget system revenues is balanced – it is dominated by taxes on salaries: insurance premiums and personal income tax. They account for 32 percent of total revenues. Taxes on consumption: VAT, excise duties, import duties, scrappage tax – eight percent. Taxes on capital – income tax, special taxes are 16 percent. And natural rent – also about 16 percent.
Income from natural rent. This is a specific feature of our country. And if we compare it with other OECD countries, we can see that it is exclusively our feature.
Actually, these taxes let us have a lower level of taxation on other incomes: it means lower personal income tax, lower than in the OECD, and property taxes in the Russian Federation are lower than the average for OECD countries. But we understand perfectly well that rental income is a source that is unstable and will shrink in the long run, if not exhausted after some time at all.
This is why we see the Finance Ministry’s task, given the rental income instability, in formulating the tax policy and administration with due account of minimising these risks.
In any case, the basic tax framework will remain unchanged in a planning horizon up to 2030, as per the instructions that Mr Mishustin gave during his speech. At the same time, there are new tasks, primarily in tax administration, that we will need to work on.
These include cross-border e-commerce, adapting our changing tax system to supranational taxation within international groups of companies, putting in place a unified risk management system for the Federal Tax Service and the Federal Customs Service, and adopting more effective tax incentives. The ultimate goal is to create a fairer and more efficient tax system, which will also effectively stimulate investment.
The current situation in the world requires putting more effort into the public finances’ resilience to various scenarios of global economic development. The main risk now is the development of trade wars and, accordingly, shrinking export opportunities for countries, including Russia. We have reduced our dependence on oil and gas, and today, oil and gas account for just a quarter of federal revenues, down from nearly 50 percent, as we remember being the case some time ago.
The budget rule sets the base price at $60 per barrel, though the cutoff probably no longer meets the challenges of the times. We can see this; we discussed it during the second part of our meeting.
In this regard, what we need to do is fine-tune the budget rule to minimise external risks. We also need to boost the National Wealth Fund’s liquid assets to a level that would cover three years of uninterrupted financing of obligatory expenditures in the event of stress episodes in the oil market. This would be the key to the stability of federal finances and the country’s financial system as a whole.
That is, we need to bring our expenses in line with new realities. Can we do that? Yes. We will have to rein in some of our expenditures and work to achieve a higher return on every rouble of government money.
Next, the Ministry of Finance is responsible not only for the federal budget, but also for the multilevel system of budgets across the country, which is almost 80 trillion roubles in aggregate.
The most pressing goal in inter-budgetary regulation is to bridge the gap between different regions in terms of their fiscal capacity, at least by half. However, this should not be achieved by taking everything they make and dividing it in equal shares. We will continue to support infrastructure development and investment projects in the regions, so that the economy brings regional finances to a self-sufficient level. We will also provide oversight of the stability of regional finances. We see that the regions’ debt has recently decreased and is at minimum levels now. Over the next five years, we will write off another 1 trillion roubles of federal loans and will direct these funds to infrastructure development. On the other hand, we will provide an additional 1 trillion roubles in federal loans for the development of the Russian regions. Ultimately, this should spur economic growth, increase the budget and create opportunities to support citizens.
The strength of the state is in the well-being of its most remote corners. Therefore, our goal, which is especially relevant in the light of the newly-adopted law on local self-government, is to create a reliable financial framework for local budgets. This is the overarching goal of the Ministry of Finance, and we will work to attain it.
Next task. The Ministry of Finance is not so much a ministry for budget as for finance. Our task is to ensure the sovereignty of the financial system, which is not just about reliable public finances, but also a deep, self-sufficient financial market. Everything should work together to develop the economy and improve people’s well-being.
In recent years, a range of long-term savings and investment tools has been created. The state guarantees protection and financial incentives for such savings, including tax deductions and co-financing from the budget. The volume of long-term savings of the population should increase to 40 percent of the total savings, which will come up to the level of developed countries. For people, this will serve as a reliable source of additional income, including after their working life is behind.
There is a systemic task of increasing the trust in the stock market. In the past, people kept money under their pillows, as we call it, or in bank deposits, and now our task is to make the financial market attractive so that people can feel that they are part of it, like shareholders of companies receiving income from this.
The growth of stock market capitalisation should amount to two-thirds of the gross domestic product. This task was set by the President. It is impossible to ensure these dynamics without large state-owned companies joining the market. The goal is not merely fiscal, it is to foster a new standard of performance within the companies, encouraging investment in their development. Equally important is the establishment of a long-term incentive system for management, focused on increasing the capitalisation of state-owned enterprises. Ultimately, the primary goal is to enhance the financial returns on public capital investment while supporting the transformation in the quality of these companies’ operations.
The world of finance is rapidly moving along the path of developing advanced digital technologies. The Finance Ministry’ task is to remain at the forefront of this development including cryptocurrency, international settlements in digital financial assets, tokenisation of real sector assets, the use of the digital rouble, and artificial intelligence in the budget process. We have already begun to engage artificial intelligence in our work. Artificial intelligence helps our departments with budget requests, budget classification codes, compliance of results with allocations. We will continue to develop, implement, and expand this position for the financial machine to operate more efficiently and faster.
We will launch a crypto exchange for super-qualified investors jointly with the Central Bank, so that crypto assets would be legalised and crypto operations brought out of the shadows. Tokenisation will make attracting new investments easier. The digital rouble will take its place in monetary circulation.
All of these are our tasks jointly with the Central Bank, and the ministry is working on them together with our colleagues.
Mr Mishustin, colleagues,
In the end, all these tasks we have set for the upcoming five-year period are fulfilled by people: employees of the large Ministry of Finance. In recent years, we have seriously trained our team, which has become more efficient and united. These are not beautiful words. This is actually true.
We have true professionals and experts in the spheres of finance they oversee. This is not a place for random individuals, who seldom remain for long, but for competent professionals, particularly young specialists. We are witnessing a steady renewal of the Ministry’s team, with the arrival of innovative and dynamic people. This is precisely what gives our Ministry its strength: professionalism, integrity, dedication to public service, and operational efficiency — these form the cultural code of the Finance Ministry’s personnel.
To sum up, until 2030, the Ministry’s work will be aligned with the mission and values of the Government of the Russian Federation focusing on improving the well-being of citizens through sustainable economic growth, implementing prudent fiscal policies, and reinforcing the country’s financial sovereignty.
Thank you very much for your attention.
We discussed in detail all the points that I have just listed, with our colleagues from the regions and the ministries. Our colleagues from parliament were also engaged in our work, for which we are grateful. We outlined proposals for the future work of the Ministry of Finance, to improve the quality of our activities.
More to be posted soon.
